Rochester FHA Loans

ROCHESTER, MN

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    • FHA loans are mortgages created in the 1930's to help insulate lenders from credit risks and help promote home ownership. The Federal Housing Administration (hence, FHA) allows for lower downpayments and credit scores-- making these loans much more accessible than traditional mortgages.

    FHA loans typically need just a 3.5% downpayment with credit scores of 580 or better. For credit scores between 500-579, the downpayment needs to be at least 10%.

    While FHA loans make home ownership much more accessible to first-time homebuyers, they do require PMI (purchase money insurance)-- an additional insurance premium that is paid to the FHA to help cover defaults.

    For additional requirements as defined by the FHA, click here.

    Rochester's 75 lenders originated 580 FHA loans during 2021. The total origination value was $122,060,000, with an average FHA loan value of $210,448.

    Rochester FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Rochester averaged 5.11% for the week of 2022-05-13, compared to the national average (all FHA variants) of 5.361% for the same period.

    The average rate for the prior week (2022-05-06) was 5.04% and one month ago for the week of 2022-04-08, the average rate was 4.71%.

    The average rate one year ago was 3.02%.

    For refis of the same type during the week of 2022-05-13, the average rate was 5.12%.

    Click on whitespace and scroll within the chart to zoom in/out. Larger bubbles equate with more originations.

    Rochester FHA Loan Lenders by Rates & Fees

    The below table looks at the average fees and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Rochester level.

    Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
    UNITED WHOLESALE MORTGAGE, LLC 58 2.69% $7,212
    QUICKEN LOANS, LLC 56 2.79% $5,846
    LOANDEPOT.COM, LLC 41 3.12% $8,476
    CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 32 3.41% $8,798
    Home Federal Savings Bank 24 2.96% $7,669
    RESULTS MORTGAGE, LLC 23 3.16% $7,269
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 20 3.36% $7,967
    Barrington Bank & Trust Company, N.A. 20 3.16% $7,711
    Bell Bank 17 2.92% $8,307
    GUARANTEED RATE, INC. 15 2.60% $7,589
    CALIBER HOME LOANS, INC. 12 3.14% $6,535
    GUARANTEED RATE AFFINITY, LLC 10 2.86% $7,575
    FREEDOM MORTGAGE CORPORATION 10 2.78% $4,780
    PENNYMAC LOAN SERVICES, LLC 9 3.01% $3,986
    BAY EQUITY LLC 9 2.98% $8,333
    CROSSCOUNTRY MORTGAGE, LLC 8 3.04% $7,743
    Carrington Mortgage Services, LLC 7 3.16% $6,697
    U.S. Bank 6 3.25% $7,071
    Prosperity Home Mortgage, LLC 6 3.40% $6,942
    Mr. Cooper ( Nationstar Mortgage ) 6 3.33% $4,668
    HOMEBRIDGE FINANCIAL SERVICES, INC. 5 2.60% $5,222
    VILLAGE CAPITAL & INVESTMENT LLC 5 2.65% $2,046
    LAKEVIEW LOAN SERVICING, LLC 5 2.95% $4,120
    Plains Commerce Bank 5 2.68% $7,435
    AMERISAVE MORTGAGE CORPORATION 4 2.91% $8,380
    Bremer Bank 4 2.84% $6,034
    HANCOCK MORTGAGE PARTNERS, LLC 4 3.00% $10,302
    Wells Fargo Bank 4 3.19% $4,526
    AMERICAN FINANCIAL NETWORK, INC. 3 2.50% $9,482
    EVERETT FINANCIAL, INC. 3 3.25% $6,561
    MUTUAL OF OMAHA MORTGAGE, INC. 3 3.00% $8,658
    PRIMELENDING, A PLAINSCAPITAL COMPANY 3 2.91% $7,010
    Servion, Inc. 3 3.29% $6,370
    BROKER SOLUTIONS, INC. 3 3.24% $8,529
    Bank of England 3 3.29% $8,587
    NATIONS RELIABLE LENDING, LLC 2 3.25% $8,552
    Hometown Lenders, Inc. 2 2.88% $8,472
    Lend Smart Mortgage, LLC 2 3.25% $11,040
    LAND HOME FINANCIAL SERVICES, INC. 2 3.38% $8,506
    First Guaranty Mortgage Corporation 2 3.19% $5,339
    ZILLOW HOME LOANS, LLC 1 2.88% $4,492
    ALTRA 1 3.25% $10,319
    American Mortgage & Equity Consultants, Inc. 1 3.00% $7,351
    AmeriHome Mortgage Company, LLC 1 2.99% $4,191
    AXIA FINANCIAL, LLC 1 2.88% $7,110
    Citizens Bank 1 2.75% $5,285
    Coulee Bank 1 2.25% $7,889
    CRESCENT MORTGAGE COMPANY 1 2.75% $7,033
    DATA MORTGAGE, INC. 1 3.50% $5,501
    EMBRACE HOME LOANS, INC. 1 2.75% $9,088
    Fidelity Bank 1 3.00% $5,975
    First Federal Bank 1 3.00% $8,695
    Heritage Bank 1 3.25% $10,373
    HOME POINT FINANCIAL CORPORATION 1 2.50% $7,912
    HOMESIDE FINANCIAL, LLC 1 3.00% $7,562
    INLANTA MORTGAGE, INC. 1 3.63% $6,327
    IOWA BANKERS MORTGAGE CORPORATION 1 2.75% $6,994
    Ixonia Bank 1 3.25% $5,665
    KELLER MORTGAGE, LLC 1 2.88% $12,226
    Lakeview Community Capital, LLC 1 2.99% $4,178
    LOANPAL, LLC 1 2.75% $4,847
    MICHIGAN MUTUAL, INC. 1 2.88% $6,526
    MORIA DEVELOPMENT, INC. 1 3.00% $7,590
    NEWREZ LLC 1 2.99% $2,623
    OCMBC, INC. 1 2.63% $5,109
    Paramount Residential Mortgage Group, Inc. 1 3.99% $8,060
    Sierra Pacific Mortgage Company, Inc. 1 3.75% $6,726
    SOVEREIGN LENDING GROUP INCORPORATED 1 3.75% $11,232
    SUMMIT FUNDING, INC. 1 3.75% $11,643
    Summit Mortgage Corporation 1 3.25% $7,791
    THOMPSON KANE & COMPANY, LLC 1 3.00% $7,391
    Tradition Mortgage, LLC 1 3.13% $7,289
    TRUSTONE FINANCIAL FEDERAL CREDIT UNION 1 3.13% $5,381
    UNITED SECURITY FINANCIAL CORP 1 2.50% $4,489
    Alerus Financial 1 2.50% $4,391

    The top Rochester FHA lender as defined by loan originations is UNITED WHOLESALE MORTGAGE, LLC, with 58 FHA loans originated. Their average total fees are $7,212, which is $1,366 higher than the next largest lender, QUICKEN LOANS, LLC.

    The lowest fee Rochester FHA lenders (with over 10 loans originated) are FREEDOM MORTGAGE CORPORATION ($4,780), QUICKEN LOANS, LLC ($5,846), CALIBER HOME LOANS, INC. ($6,535), UNITED WHOLESALE MORTGAGE, LLC ($7,212) and RESULTS MORTGAGE, LLC ($7,269).

    The lowest rate Rochester FHA lenders (with over 10 loans originated) are GUARANTEED RATE, INC. (2.60%), UNITED WHOLESALE MORTGAGE, LLC (2.69%), FREEDOM MORTGAGE CORPORATION (2.78%), QUICKEN LOANS, LLC (2.79%) and GUARANTEED RATE AFFINITY, LLC (2.86%).

    Rochester FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    ROCHESTER, MN DODGE 2022 $420,680 $538,650 $651,050 $809,150
    ROCHESTER, MN FILLMORE 2022 $420,680 $538,650 $651,050 $809,150
    ROCHESTER, MN OLMSTED 2022 $420,680 $538,650 $651,050 $809,150
    ROCHESTER, MN WABASHA 2022 $420,680 $538,650 $651,050 $809,150

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Rochester (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Price (YoY Change) Average Listing Price (YoY) MSA/US Median Price Ratio Active Listings
    2018-01-01 $290,900 (21.3%) $324,233 (10.7%) 1.07 536
    2018-02-01 $297,000 (22.5%) $335,839 (14.8%) 1.07 537
    2018-03-01 $319,000 (27.7%) $354,569 (19.1%) 1.10 604
    2018-04-01 $312,400 (15.8%) $357,137 (15.0%) 1.05 635
    2018-05-01 $299,950 (10.1%) $353,792 (11.2%) 1.00 666
    2018-06-01 $299,900 (10.8%) $352,139 (10.1%) 1.00 703
    2018-07-01 $297,400 (10.6%) $346,485 (10.2%) 0.99 774
    2018-08-01 $287,800 (4.7%) $335,946 (7.2%) 0.96 805
    2018-09-01 $279,900 (7.7%) $329,923 (7.8%) 0.94 848
    2018-10-01 $274,900 (2.8%) $320,000 (2.9%) 0.92 853
    2018-11-01 $274,900 (0.8%) $323,646 (4.3%) 0.92 801
    2018-12-01 $294,900 (5.7%) $337,496 (8.1%) 1.01 698
    2019-01-01 $304,900 (4.8%) $352,369 (8.7%) 1.05 500
    2019-02-01 $300,000 (1.0%) $353,878 (5.4%) 1.01 388
    2019-03-01 $313,043 (-1.9%) $359,553 (1.4%) 1.02 516
    2019-04-01 $319,900 (2.4%) $365,979 (2.5%) 1.01 670
    2019-05-01 $319,400 (6.5%) $361,283 (2.1%) 0.98 708
    2019-06-01 $309,900 (3.3%) $360,500 (2.4%) 0.95 741
    2019-07-01 $309,900 (4.2%) $359,779 (3.8%) 0.96 755
    2019-08-01 $305,614 (6.2%) $358,144 (6.6%) 0.96 750
    2019-09-01 $300,614 (7.4%) $355,632 (7.8%) 0.95 764
    2019-10-01 $299,900 (9.1%) $355,922 (11.2%) 0.96 779
    2019-11-01 $296,900 (8.0%) $353,770 (9.3%) 0.96 736
    2019-12-01 $308,450 (4.6%) $360,227 (6.7%) 1.03 609
    2020-01-01 $304,250 (-0.2%) $355,672 (0.9%) 1.01 536
    2020-02-01 $319,900 (6.6%) $371,785 (5.1%) 1.03 484
    2020-03-01 $317,400 (1.4%) $374,138 (4.1%) 0.99 517
    2020-04-01 $319,950 (0.0%) $370,113 (1.1%) 1.00 564
    2020-05-01 $320,000 (0.2%) $378,054 (4.6%) 0.97 574
    2020-06-01 $330,450 (6.6%) $390,277 (8.3%) 0.97 542
    2020-07-01 $329,950 (6.5%) $400,648 (11.4%) 0.95 494
    2020-08-01 $321,900 (5.3%) $395,191 (10.3%) 0.92 485
    2020-09-01 $311,450 (3.6%) $391,333 (10.0%) 0.89 463
    2020-10-01 $299,890 (0.0%) $377,657 (6.1%) 0.86 455
    2020-11-01 $289,450 (-2.5%) $381,818 (7.9%) 0.83 392
    2020-12-01 $294,950 (-4.4%) $392,482 (9.0%) 0.86 301
    2021-01-01 $304,900 (0.2%) $404,847 (13.8%) 0.90 250
    2021-02-01 $315,950 (-1.2%) $408,730 (9.9%) 0.91 244
    2021-03-01 $334,450 (5.4%) $410,464 (9.7%) 0.94 260
    2021-04-01 $334,850 (4.7%) $411,203 (11.1%) 0.90 235
    2021-05-01 $344,900 (7.8%) $413,726 (9.4%) 0.91 228
    2021-06-01 $339,450 (2.7%) $405,213 (3.8%) 0.88 255
    2021-07-01 $335,000 (1.5%) $413,893 (3.3%) 0.87 319
    2021-08-01 $322,500 (0.2%) $413,627 (4.7%) 0.85 368
    2021-09-01 $329,500 (5.8%) $406,178 (3.8%) 0.87 402
    2021-10-01 $339,900 (13.3%) $414,661 (9.8%) 0.89 421
    2021-11-01 $349,450 (20.7%) $424,310 (11.1%) 0.92 378
    2021-12-01 $355,000 (20.4%) $433,199 (10.4%) 0.95 306
    2022-01-01 $360,000 (18.1%) $432,748 (6.9%) 0.96 242
    2022-02-01 $387,450 (22.6%) $475,697 (16.4%) 0.99 202
    2022-03-01 $383,900 (14.8%) $470,886 (14.7%) 0.95 219
    2022-04-01 $390,000 (16.5%) $463,427 (12.7%) 0.92 249
    Rochester's median listing price for 2022-04-01 was $390,000, a difference of $55,150 (16.5%) versus the prior year and $6,100 versus the prior month.

    Rochester's median listing price comes in at 92% of the national average.

    Rochester's average listing price for 2022-04-01 was $463,427, a difference of $52,224 (12.7%) versus the prior year and $-7,459 versus the prior month.

    For the 2022-04-01 period, Rochester had 249 MLS listings, a difference of 30 listings (14%) versus the prior month and 14 listings (6%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Rochester (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 93 days 2,544 sqft
    2018-02-01 96 days 2,567 sqft
    2018-03-01 56 days 2,738 sqft
    2018-04-01 47 days 2,748 sqft
    2018-05-01 50 days 2,659 sqft
    2018-06-01 50 days 2,695 sqft
    2018-07-01 53 days 2,709 sqft
    2018-08-01 59 days 2,602 sqft
    2018-09-01 59 days 2,578 sqft
    2018-10-01 64 days 2,458 sqft
    2018-11-01 69 days 2,481 sqft
    2018-12-01 78 days 2,352 sqft
    2019-01-01 101 days 2,087 sqft
    2019-02-01 70 days 2,093 sqft
    2019-03-01 64 days 2,167 sqft
    2019-04-01 54 days 2,231 sqft
    2019-05-01 53 days 2,235 sqft
    2019-06-01 57 days 2,246 sqft
    2019-07-01 58 days 2,256 sqft
    2019-08-01 53 days 2,259 sqft
    2019-09-01 56 days 2,220 sqft
    2019-10-01 57 days 2,226 sqft
    2019-11-01 67 days 2,192 sqft
    2019-12-01 79 days 2,199 sqft
    2020-01-01 93 days 2,130 sqft
    2020-02-01 97 days 2,206 sqft
    2020-03-01 52 days 2,190 sqft
    2020-04-01 46 days 2,194 sqft
    2020-05-01 53 days 2,235 sqft
    2020-06-01 57 days 2,269 sqft
    2020-07-01 56 days 2,320 sqft
    2020-08-01 50 days 2,212 sqft
    2020-09-01 49 days 2,180 sqft
    2020-10-01 47 days 2,117 sqft
    2020-11-01 55 days 2,050 sqft
    2020-12-01 60 days 2,088 sqft
    2021-01-01 69 days 1,989 sqft
    2021-02-01 62 days 2,018 sqft
    2021-03-01 40 days 2,106 sqft
    2021-04-01 36 days 2,036 sqft
    2021-05-01 40 days 2,096 sqft
    2021-06-01 38 days 2,113 sqft
    2021-07-01 36 days 2,082 sqft
    2021-08-01 36 days 2,098 sqft
    2021-09-01 42 days 2,072 sqft
    2021-10-01 43 days 2,139 sqft
    2021-11-01 46 days 2,075 sqft
    2021-12-01 58 days 2,068 sqft
    2022-01-01 66 days 2,162 sqft
    2022-02-01 47 days 2,616 sqft
    2022-03-01 37 days 2,577 sqft
    2022-04-01 31 days 2,614 sqft
    Rochester's median listing age (time on market) for 2022-04-01 was 31 days. This is -13% shorter than the same period one year ago.

    Rochester's median square footage for active listings during the 2022-04-01 period was 2,614 sqft. One year prior, the average listing was 2,036 sqft.

    FHA Loan Requirements

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money may be gifted by a family member. (Traditional mortgages do not permit gifted down payments)
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers’ debt to income ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent.
  • Bborrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit.
  • The purchased property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).