Salisbury FHA Loan Rates, Closing Costs & Stats

SALISBURY, MD-DE

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.

Salisbury's 143 lenders originated 1,451 FHA loans during 2022. The total origination value was $365,685,000, with an average FHA loan value of $252,023.

Salisbury FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Salisbury averaged 6.03% for the week of 2024-03-01, compared to the national average (all FHA variants) of 6.688% for the same period.

Salisbury's average FHA mortgage closing costs are $8,157.

The average rate for the prior week (2024-02-23) was 6.02% and one month ago for the week of 2024-01-26, the average rate was 5.72%.

The average rate one year ago was 5.75%.

For refis of the same type during the week of 2024-03-01, the average rate was 5.02%.

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

Salisbury FHA Loan Lenders by Rates & Fees

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

Name # of Loans 2022 Avg. 30yFix Rate 2022 Avg. Closing Costs
QUICKEN LOANS, LLC 114 4.49% $10,305
TIDEWATER MORTGAGE SERVICES, INC. 69 5.02% $12,191
Meridian Bank Corporation 65 4.96% $11,611
MCLEAN MORTGAGE CORPORATION 54 4.87% $8,367
Mortgage Network, Inc. 46 4.80% $9,001
DHI MORTGAGE COMPANY, LTD. 44 4.02% $9,697
MOVEMENT MORTGAGE, LLC 44 5.10% $9,494
LOANDEPOT.COM, LLC 41 4.81% $9,609
CALIBER HOME LOANS, INC. 38 5.04% $11,426
PENNYMAC LOAN SERVICES, LLC 31 4.11% $10,865
NVR Mortgage Finance, Inc. 31 4.11% $13,706
EMBRACE HOME LOANS, INC. 30 4.94% $11,077
NFM, INC. 29 5.16% $11,979
GUARANTEED RATE AFFINITY, LLC 29 4.90% $10,181
First Home Bank 28 4.78% $11,538
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 26 5.31% $12,354
Evolve Bank & Trust 24 5.18% $12,795
Prosperity Home Mortgage, LLC 22 5.17% $11,640
Nations Lending Corporation 22 5.27% $10,042
UNITED WHOLESALE MORTGAGE, LLC 22 4.98% $12,292
Waterstone Mortgage Corporation 20 5.34% $11,795
M&T Bank 20 5.13% $9,058
CARDINAL FINANCIAL 19 4.91% $11,614
PIKE CREEK MORTGAGE SERVICES, INC. 18 5.64% $11,394
BROKER SOLUTIONS, INC. 18 5.53% $11,254
FREEDOM MORTGAGE CORPORATION 18 4.64% $10,772
AMERISAVE MORTGAGE CORPORATION 17 4.57% $10,582
EAGLE HOME MORTGAGE, LLC 17 5.41% $11,820
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 15 5.65% $11,831
PRIMELENDING, A PLAINSCAPITAL COMPANY 15 5.79% $8,904
FIRST HOME MORTGAGE CORPORATION 15 4.70% $13,321
HOMESIDE FINANCIAL, LLC 14 5.33% $11,762
Northpointe Bank 13 4.98% $10,911
STATE EMPLOYEES CREDIT UNION OF MARYLAND, INCORPORATED 12 4.13% $3,629
NEWREZ LLC 11 4.39% $8,634
CROSSCOUNTRY MORTGAGE, LLC 11 5.07% $11,934
Carrington Mortgage Services, LLC 11 5.31% $14,766
LAKEVIEW LOAN SERVICING, LLC 11 4.06% $6,985
PNC Bank 10 4.41% $6,652
HOME POINT FINANCIAL CORPORATION 8 5.12% $11,196
PRIMARY RESIDENTIAL MORTGAGE, INC. 7 5.13% $10,341
NORWICH COMMERCIAL GROUP, INC. 6 5.75% $9,980
Wells Fargo Bank 6 3.60% $6,613
ALLIED MORTGAGE GROUP, INC. 6 3.96% $13,625
DIRECT MORTGAGE LOANS, LLC 6 5.19% $14,121
Sierra Pacific Mortgage Company, Inc. 6 3.88% $9,379
GUILD MORTGAGE COMPANY 6 4.96% $11,417
Mr. Cooper ( Nationstar Mortgage ) 5 4.10% $15,408
CMG MORTGAGE, INC. 5 5.30% $10,930
Towne Bank 5 4.83% $8,452
First Guaranty Mortgage Corporation 5 4.28% $9,060
US MORTGAGE CORPORATION 4 5.06% $13,533
Financial Freedom Mortgage, LLC 4 5.44% $10,392
EVERETT FINANCIAL, INC. 4 4.63% $7,307
Equity Prime Mortgage LLC 4 5.31% $10,383
Wilmington Savings Fund Society, FSB 4 4.34% $10,261
American Mortgage & Equity Consultants, Inc. 4 6.16% $10,274
HOMEBRIDGE FINANCIAL SERVICES, INC. 4 4.88% $12,584
BAYSHORE MORTGAGE FUNDING, LLC 4 5.63% $13,330
MICHIGAN MUTUAL, INC. 4 5.15% $11,481
AmRes Corporation 4 3.84% $10,126
AMERICAN FINANCING CORPORATION 3 4.88% $9,717
ABSOLUTE HOME MORTGAGE CORPORATION 3 5.67% $9,151
Ixonia Bank 3 7.00% $11,946
ZILLOW HOME LOANS, LLC 3 5.42% $11,569
Presidential Bank, FSB 3 4.83% $11,079
AMERICAN FINANCIAL RESOURCES, INC. 3 3.96% $11,320
VILLAGE CAPITAL MORTGAGE 3 4.00% $5,731
FIDELITY DIRECT MORTGAGE, LLC 3 4.96% $11,301
RELIANCE FIRST CAPITAL, LLC 3 5.46% $10,976
NATIONWIDE MORTGAGE BANKERS, INC. 3 6.21% $15,736
Mortgage Research Center, LLC 3 5.50% $5,635
ACADEMY MORTGAGE CORPORATION 3 4.42% $11,123
GSF Mortgage Corporation 2 5.13% $12,058
1ST PREFERENCE MORTGAGE CORP. 2 4.25% $10,084
Ameris Bank 2 5.56% $7,285
ARK-LA-TEX FINANCIAL SERVICES, LLC. 2 5.75% $6,322
Bank of England 2 4.00% $9,961
Capital Bank 2 5.94% $14,204
Century Mortgage Company DBA Century Lending Company 2 3.94% $15,720
Citizens Bank 2 3.75% $6,441
EMM LOANS LLC 2 5.50% $12,778
FINANCE OF AMERICA MORTGAGE LLC 2 5.88% $14,141
GENEVA FINANCIAL, LLC 2 5.56% $13,431
GUARANTEED RATE, INC. 2 4.38% $8,601
Huntingdon Valley Bank 2 5.25% $12,186
LOANPAL, LLC 2 6.18% $13,534
MUTUAL OF OMAHA MORTGAGE, INC. 2 4.25% $11,288
NETWORK CAPITAL FUNDING CORPORATION 2 5.06% $15,025
North American Savings Bank, F.S.B. 2 5.63% $6,148
OCMBC, INC. 2 4.63% $10,859
ON Q FINANCIAL, INC. 2 7.00% $11,696
Paramount Residential Mortgage Group, Inc. 2 5.75% $17,132
PLANET HOME LENDING, LLC 2 3.56% $8,697
PLAZA HOME MORTGAGE, INC. 2 6.38% $10,598
Residential Mortgage Solutions, Inc. 2 6.19% $9,919
SOUTHPOINT FINANCIAL SERVICES, INC. 2 4.13% $12,954
SUMMIT FUNDING, INC. 2 5.00% $11,351
The Federal Savings Bank 2 4.25% $13,740
THE MORTGAGE LINK, INC. 2 4.25% $9,006
Truist 2 5.48% $12,069
UNIVERSAL MORTGAGE & FINANCE, INC. 2 5.63% $10,039
BAY EQUITY LLC 1 7.13% $13,674
VAN DYK MORTGAGE CORPORATION 1 5.63% $7,352
LENDING 3, INC. 1 6.50% $10,414
Lakeview Community Capital, LLC 1 5.75% $6,657
KELLER MORTGAGE, LLC 1 4.13% $8,144
HARTFORD FUNDING, LTD. 1 5.50% $10,356
1ST FINANCIAL, INC. 1 4.25% $9,947
GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 1 6.50% $7,944
Flagstar Bank, FSB 1 4.63% $16,457
RESIDENTIAL HOME FUNDING CORP. 1 4.63% $6,590
BAY CAPITAL MORTGAGE CORPORATION 1 4.25% $11,599
First Savings Bank 1 4.25% $20,223
SOUTHERN TRUST MORTGAGE, LLC 1 4.13% $18,735
Bank of America 1 4.00% $11,645
SOVEREIGN LENDING GROUP INCORPORATED 1 4.25% $11,399
First Heritage Mortgage, LLC 1 5.25% $8,172
STOCKTON MORTGAGE CORPORATION 1 3.50% $9,741
APEX HOME LOANS, INC. 1 4.38% $13,694
SUN WEST MORTGAGE COMPANY, INC. 1 4.63% $3,217
SWBC MORTGAGE CORPORATION 1 3.75% $8,085
T2 FINANCIAL LLC 1 4.75% $19,597
TD Bank 1 3.50% $4,746
WesBanco 1 6.13% $9,782
The Huntington National Bank 1 5.88% $7,167
AmeriHome Mortgage Company, LLC 1 4.63% $12,757
FIRST HERITAGE FINANCIAL, LLC 1 4.38% $11,754
CHURCHILL MORTGAGE CORPORATION 1 5.75% $13,036
Wyndham Capital Mortgage, Inc. 1 6.25% $5,835
NEXERA HOLDING LLC 1 6.00% $9,348
NEW DAY FINANCIAL, LLC 1 5.75% $6,028
UNION HOME MORTGAGE CORP. 1 3.50% $11,619
NATIONWIDE EQUITIES CORPORATION 1 6.13% $10,271
NATIONS DIRECT MORTGAGE, LLC 1 4.63% $12,077
Mid Penn Bank 1 3.25% $7,233
UNITED MORTGAGE CORP 1 4.50% $10,156
Blue Ridge Bank 1 3.25% $12,208
AMERICAN PACIFIC MORTGAGE CORPORATION 1 4.75% $9,917
Magnolia Bank 1 3.63% $9,227
PENTAGON FEDERAL CREDIT UNION 1 6.63% $5,903
LOANLEADERS OF AMERICA, INC. 1 4.75% $10,743
Plains Commerce Bank 1 4.25% $11,761

The top Salisbury FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 114 FHA loans originated. Their average total fees are $10,305, which is $1,887 lower than the next largest lender, TIDEWATER MORTGAGE SERVICES, INC..

The lowest fee Salisbury FHA lenders (with over 10 loans originated) are STATE EMPLOYEES CREDIT UNION OF MARYLAND, INCORPORATED ($3,629), PNC Bank ($6,652), LAKEVIEW LOAN SERVICING, LLC ($6,985), MCLEAN MORTGAGE CORPORATION ($8,367) and NEWREZ LLC ($8,634).

The lowest rate Salisbury FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (4.02%), LAKEVIEW LOAN SERVICING, LLC (4.06%), NVR Mortgage Finance, Inc. (4.11%), PENNYMAC LOAN SERVICES, LLC (4.11%) and STATE EMPLOYEES CREDIT UNION OF MARYLAND, INCORPORATED (4.13%).

Salisbury FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
SALISBURY, MD-DE SUSSEX 2022 $420,680 $538,650 $651,050 $809,150
SALISBURY, MD-DE SOMERSET 2022 $420,680 $538,650 $651,050 $809,150
SALISBURY, MD-DE WICOMICO 2022 $420,680 $538,650 $651,050 $809,150
SALISBURY, MD-DE WORCESTER 2022 $420,680 $538,650 $651,050 $809,150
SALISBURY, MD-DE SUSSEX 2023 $472,030 $604,400 $730,525 $907,900
SALISBURY, MD-DE SOMERSET 2023 $472,030 $604,400 $730,525 $907,900
SALISBURY, MD-DE WICOMICO 2023 $472,030 $604,400 $730,525 $907,900
SALISBURY, MD-DE WORCESTER 2023 $472,030 $604,400 $730,525 $907,900

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Salisbury (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 $299,900 (2.7%) $398,289 (3.1%) 1.11 3,934
2018-02-01 $301,812 (1.9%) $400,441 (3.0%) 1.10 4,035
2018-03-01 $305,000 (1.7%) $399,534 (1.5%) 1.07 4,115
2018-04-01 $313,400 (4.5%) $408,937 (3.3%) 1.06 4,241
2018-05-01 $314,950 (5.0%) $414,194 (3.7%) 1.05 4,351
2018-06-01 $315,000 (3.6%) $412,782 (1.9%) 1.05 4,385
2018-07-01 $318,500 (4.3%) $420,562 (3.8%) 1.06 4,255
2018-08-01 $319,000 (2.9%) $421,794 (3.3%) 1.07 4,257
2018-09-01 $318,000 (2.7%) $423,225 (3.7%) 1.07 4,322
2018-10-01 $319,990 (4.3%) $428,232 (4.8%) 1.08 4,306
2018-11-01 $319,945 (5.0%) $429,262 (5.9%) 1.08 4,207
2018-12-01 $319,000 (6.4%) $418,893 (5.3%) 1.10 4,024
2019-01-01 $312,000 (4.0%) $411,292 (3.3%) 1.08 3,850
2019-02-01 $317,450 (5.2%) $420,089 (4.9%) 1.07 3,993
2019-03-01 $322,143 (5.6%) $431,470 (8.0%) 1.05 4,066
2019-04-01 $326,523 (4.2%) $442,884 (8.3%) 1.04 4,145
2019-05-01 $332,447 (5.6%) $447,301 (8.0%) 1.04 4,197
2019-06-01 $335,000 (6.4%) $446,625 (8.2%) 1.05 4,208
2019-07-01 $335,950 (5.5%) $447,802 (6.5%) 1.05 4,054
2019-08-01 $336,355 (5.4%) $447,478 (6.1%) 1.07 3,949
2019-09-01 $335,536 (5.5%) $446,746 (5.6%) 1.07 3,912
2019-10-01 $334,950 (4.7%) $446,833 (4.3%) 1.08 3,872
2019-11-01 $332,995 (4.1%) $447,569 (4.3%) 1.09 3,700
2019-12-01 $329,900 (3.4%) $439,718 (5.0%) 1.10 3,463
2020-01-01 $329,900 (5.7%) $439,250 (6.8%) 1.10 3,327
2020-02-01 $330,000 (4.0%) $446,717 (6.3%) 1.08 3,363
2020-03-01 $339,000 (5.2%) $452,092 (4.8%) 1.06 3,390
2020-04-01 $337,975 (3.5%) $447,284 (1.0%) 1.06 3,406
2020-05-01 $339,990 (2.3%) $452,990 (1.3%) 1.03 3,293
2020-06-01 $347,200 (3.6%) $466,099 (4.4%) 1.02 2,891
2020-07-01 $349,350 (4.0%) $478,702 (6.9%) 1.01 2,518
2020-08-01 $354,400 (5.4%) $495,738 (10.8%) 1.02 2,232
2020-09-01 $355,450 (5.9%) $502,573 (12.5%) 1.02 2,044
2020-10-01 $356,295 (6.4%) $513,327 (14.9%) 1.02 1,891
2020-11-01 $357,065 (7.2%) $515,625 (15.2%) 1.04 1,748
2020-12-01 $358,425 (8.7%) $513,231 (16.7%) 1.07 1,621
2021-01-01 $359,560 (9.0%) $514,444 (17.1%) 1.07 1,448
2021-02-01 $366,450 (11.1%) $523,616 (17.2%) 1.07 1,252
2021-03-01 $380,725 (12.3%) $532,858 (17.9%) 1.08 1,207
2021-04-01 $389,823 (15.3%) $555,886 (24.3%) 1.06 1,168
2021-05-01 $399,900 (17.6%) $562,847 (24.3%) 1.06 1,118
2021-06-01 $410,450 (18.2%) $564,658 (21.2%) 1.08 1,238
2021-07-01 $419,900 (20.2%) $555,173 (16.0%) 1.11 1,326
2021-08-01 $424,950 (19.9%) $560,579 (13.1%) 1.13 1,289
2021-09-01 $424,000 (19.3%) $557,205 (10.9%) 1.13 1,314
2021-10-01 $439,000 (23.2%) $568,794 (10.8%) 1.17 1,330
2021-11-01 $441,225 (23.6%) $569,492 (10.5%) 1.18 1,247
2021-12-01 $446,950 (24.7%) $571,822 (11.4%) 1.21 1,091
2022-01-01 $458,000 (27.4%) $594,042 (15.5%) 1.24 940
2022-02-01 $486,250 (32.7%) $613,103 (17.1%) 1.26 955
2022-03-01 $488,660 (28.4%) $604,526 (13.5%) 1.22 1,046
2022-04-01 $499,999 (28.3%) $642,780 (15.6%) 1.19 1,075
2022-05-01 $499,947 (25.0%) $655,245 (16.4%) 1.14 1,194
2022-06-01 $499,968 (21.8%) $637,841 (13.0%) 1.11 1,325
2022-07-01 $509,900 (21.4%) $662,334 (19.3%) 1.15 1,463
2022-08-01 $499,947 (17.7%) $660,756 (17.9%) 1.16 1,497
2022-09-01 $499,950 (17.9%) $661,241 (18.7%) 1.17 1,551
2022-10-01 $505,000 (15.0%) $653,140 (14.8%) 1.19 1,646
2022-11-01 $499,945 (13.3%) $648,756 (13.9%) 1.20 1,644
2022-12-01 $494,900 (10.7%) $631,881 (10.5%) 1.22 1,536
2023-01-01 $497,375 (8.6%) $638,687 (7.5%) 1.23 1,396
2023-02-01 $504,990 (3.9%) $653,235 (6.6%) 1.22 1,363
2023-03-01 $502,425 (2.8%) $652,669 (8.0%) 1.19 1,390
2023-04-01 $529,900 (6.0%) $674,877 (5.0%) 1.23 1,393
2023-05-01 $529,995 (6.0%) $669,845 (2.2%) 1.20 1,456
2023-06-01 $528,995 (5.8%) $679,430 (6.5%) 1.19 1,496
2023-07-01 $519,000 (1.8%) $664,406 (0.3%) 1.18 1,548
2023-08-01 $514,945 (3.0%) $664,026 (0.5%) 1.18 1,564
2023-09-01 $509,990 (2.0%) $658,253 (-0.5%) 1.19 1,665
2023-10-01 $510,000 (1.0%) $666,352 (2.0%) 1.20 1,720
2023-11-01 $497,000 (-0.6%) $646,555 (-0.3%) 1.18 1,831
2023-12-01 $484,900 (-2.0%) $631,096 (-0.1%) 1.18 1,738
2024-01-01 $484,250 (-2.6%) $624,103 (-2.3%) 1.18 1,699
Salisbury's median listing price for 2024-01-01 was $484,250, a difference of $-13,125 (-2.6%) versus the prior year and $-650 versus the prior month.

Salisbury's median listing price comes in at 118% of the national average.

Salisbury's average listing price for 2024-01-01 was $624,103, a difference of $-14,584 (-2.3%) versus the prior year and $-6,993 versus the prior month.

For the 2024-01-01 period, Salisbury had 1,699 MLS listings, a difference of -39 listings (-2%) versus the prior month and 303 listings (22%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Salisbury (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 111 days 1,798 sqft
2018-02-01 104 days 1,800 sqft
2018-03-01 85 days 1,798 sqft
2018-04-01 76 days 1,800 sqft
2018-05-01 76 days 1,826 sqft
2018-06-01 80 days 1,821 sqft
2018-07-01 85 days 1,851 sqft
2018-08-01 89 days 1,851 sqft
2018-09-01 89 days 1,842 sqft
2018-10-01 85 days 1,840 sqft
2018-11-01 91 days 1,831 sqft
2018-12-01 100 days 1,816 sqft
2019-01-01 110 days 1,800 sqft
2019-02-01 111 days 1,792 sqft
2019-03-01 94 days 1,821 sqft
2019-04-01 74 days 1,849 sqft
2019-05-01 75 days 1,865 sqft
2019-06-01 79 days 1,860 sqft
2019-07-01 85 days 1,869 sqft
2019-08-01 85 days 1,883 sqft
2019-09-01 83 days 1,881 sqft
2019-10-01 82 days 1,879 sqft
2019-11-01 86 days 1,866 sqft
2019-12-01 98 days 1,856 sqft
2020-01-01 106 days 1,854 sqft
2020-02-01 96 days 1,860 sqft
2020-03-01 72 days 1,870 sqft
2020-04-01 77 days 1,873 sqft
2020-05-01 90 days 1,892 sqft
2020-06-01 96 days 1,926 sqft
2020-07-01 82 days 1,952 sqft
2020-08-01 61 days 1,949 sqft
2020-09-01 51 days 1,913 sqft
2020-10-01 57 days 1,900 sqft
2020-11-01 61 days 1,879 sqft
2020-12-01 69 days 1,853 sqft
2021-01-01 78 days 1,845 sqft
2021-02-01 73 days 1,848 sqft
2021-03-01 57 days 1,861 sqft
2021-04-01 51 days 1,857 sqft
2021-05-01 49 days 1,895 sqft
2021-06-01 41 days 1,914 sqft
2021-07-01 40 days 1,915 sqft
2021-08-01 46 days 1,887 sqft
2021-09-01 47 days 1,864 sqft
2021-10-01 49 days 1,880 sqft
2021-11-01 49 days 1,871 sqft
2021-12-01 62 days 1,871 sqft
2022-01-01 73 days 1,893 sqft
2022-02-01 55 days 1,965 sqft
2022-03-01 39 days 1,961 sqft
2022-04-01 42 days 1,976 sqft
2022-05-01 44 days 2,000 sqft
2022-06-01 42 days 2,004 sqft
2022-07-01 47 days 2,016 sqft
2022-08-01 51 days 2,028 sqft
2022-09-01 55 days 2,038 sqft
2022-10-01 56 days 2,053 sqft
2022-11-01 57 days 2,013 sqft
2022-12-01 77 days 2,000 sqft
2023-01-01 91 days 1,995 sqft
2023-02-01 84 days 2,016 sqft
2023-03-01 54 days 2,005 sqft
2023-04-01 55 days 2,023 sqft
2023-05-01 51 days 2,023 sqft
2023-06-01 50 days 2,079 sqft
2023-07-01 53 days 2,023 sqft
2023-08-01 57 days 2,001 sqft
2023-09-01 54 days 1,980 sqft
2023-10-01 50 days 1,938 sqft
2023-11-01 52 days 1,907 sqft
2023-12-01 63 days 1,858 sqft
2024-01-01 75 days 1,839 sqft
Salisbury's median listing age (time on market) for 2024-01-01 was 75 days. This is -17% shorter than the same period one year ago.

Salisbury's median square footage for active listings during the 2024-01-01 period was 1,839 sqft. One year prior, the average listing was 1,995 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).