Rochester FHA Loans

ROCHESTER, MN

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).