Salisbury FHA Loan Rates, Closing Costs & Stats

SALISBURY, MD-DE

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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.

    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 6.05% for the week of 2023-05-26, compared to the national average (all FHA variants) of 6.612% for the same period.

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

    The average rate for the prior week (2023-05-19) was 6.03% and one month ago for the week of 2023-04-21, the average rate was 5.87%.

    The average rate one year ago was 4.69%.

    For refis of the same type during the week of 2023-05-26, the average rate was 5.04%.

    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 Bank, Inc. 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%) $398,367 (3.1%) 1.11 3,932
    2018-02-01 $302,450 (2.1%) $400,528 (3.0%) 1.10 4,033
    2018-03-01 $305,000 (1.7%) $399,568 (1.5%) 1.07 4,114
    2018-04-01 $313,900 (4.7%) $408,972 (3.3%) 1.06 4,240
    2018-05-01 $314,950 (5.0%) $414,187 (3.7%) 1.05 4,351
    2018-06-01 $315,000 (3.5%) $412,790 (1.8%) 1.05 4,385
    2018-07-01 $318,500 (3.8%) $420,570 (3.8%) 1.06 4,255
    2018-08-01 $319,000 (2.9%) $421,832 (3.3%) 1.07 4,256
    2018-09-01 $318,000 (2.6%) $423,225 (3.7%) 1.07 4,322
    2018-10-01 $319,990 (4.0%) $428,235 (4.8%) 1.08 4,305
    2018-11-01 $319,945 (4.9%) $429,268 (5.9%) 1.08 4,206
    2018-12-01 $319,000 (6.4%) $418,898 (5.3%) 1.10 4,023
    2019-01-01 $311,975 (4.0%) $411,295 (3.3%) 1.08 3,849
    2019-02-01 $317,450 (5.0%) $420,094 (4.9%) 1.07 3,992
    2019-03-01 $322,833 (5.9%) $428,725 (7.3%) 1.08 4,085
    2019-04-01 $326,550 (4.0%) $442,940 (8.3%) 1.04 4,188
    2019-05-01 $332,447 (5.6%) $447,301 (8.0%) 1.04 4,196
    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 $339,000 (6.3%) $452,284 (7.2%) 1.06 4,019
    2019-09-01 $339,450 (6.8%) $458,410 (8.3%) 1.07 3,763
    2019-10-01 $334,950 (4.7%) $448,357 (4.7%) 1.08 3,855
    2019-11-01 $332,995 (4.1%) $447,569 (4.3%) 1.09 3,700
    2019-12-01 $329,900 (3.4%) $439,774 (5.0%) 1.10 3,462
    2020-01-01 $329,900 (5.8%) $439,308 (6.8%) 1.10 3,326
    2020-02-01 $330,200 (4.0%) $446,776 (6.4%) 1.08 3,362
    2020-03-01 $339,100 (5.0%) $452,153 (5.5%) 1.06 3,389
    2020-04-01 $338,125 (3.5%) $447,343 (1.0%) 1.06 3,405
    2020-05-01 $339,990 (2.3%) $453,168 (1.3%) 1.03 3,290
    2020-06-01 $347,738 (3.8%) $466,216 (4.4%) 1.02 2,889
    2020-07-01 $349,450 (4.0%) $478,846 (6.9%) 1.01 2,516
    2020-08-01 $354,900 (4.7%) $495,805 (9.6%) 1.02 2,231
    2020-09-01 $355,948 (4.9%) $502,776 (9.7%) 1.02 2,043
    2020-10-01 $356,990 (6.6%) $513,515 (14.5%) 1.02 1,890
    2020-11-01 $357,391 (7.3%) $515,829 (15.3%) 1.05 1,747
    2020-12-01 $358,475 (8.7%) $513,464 (16.8%) 1.07 1,620
    2021-01-01 $359,658 (9.0%) $514,872 (17.2%) 1.07 1,447
    2021-02-01 $366,495 (11.0%) $524,290 (17.4%) 1.07 1,251
    2021-03-01 $380,750 (12.3%) $533,148 (17.9%) 1.08 1,206
    2021-04-01 $390,145 (15.4%) $556,118 (24.3%) 1.06 1,167
    2021-05-01 $399,900 (17.6%) $563,051 (24.3%) 1.06 1,118
    2021-06-01 $410,450 (18.0%) $564,754 (21.1%) 1.08 1,238
    2021-07-01 $419,900 (20.2%) $555,173 (15.9%) 1.11 1,326
    2021-08-01 $424,950 (19.7%) $560,936 (13.1%) 1.13 1,286
    2021-09-01 $424,248 (19.2%) $557,719 (10.9%) 1.13 1,313
    2021-10-01 $438,500 (22.8%) $568,664 (10.7%) 1.17 1,331
    2021-11-01 $440,675 (23.3%) $569,292 (10.4%) 1.18 1,249
    2021-12-01 $446,950 (24.7%) $571,648 (11.3%) 1.21 1,092
    2022-01-01 $458,000 (27.3%) $594,297 (15.4%) 1.24 941
    2022-02-01 $488,198 (33.2%) $613,920 (17.1%) 1.27 951
    2022-03-01 $489,450 (28.6%) $606,265 (13.7%) 1.23 1,042
    2022-04-01 $499,999 (28.2%) $643,442 (15.7%) 1.19 1,070
    2022-05-01 $499,947 (25.0%) $655,634 (16.4%) 1.14 1,193
    2022-06-01 $499,968 (21.8%) $638,111 (13.0%) 1.11 1,324
    2022-07-01 $509,000 (21.2%) $662,323 (19.3%) 1.15 1,464
    2022-08-01 $499,945 (17.7%) $661,206 (17.9%) 1.15 1,498
    2022-09-01 $499,950 (17.8%) $661,514 (18.6%) 1.17 1,553
    2022-10-01 $505,000 (15.2%) $654,045 (15.0%) 1.19 1,647
    2022-11-01 $499,990 (13.5%) $649,427 (14.1%) 1.20 1,644
    2022-12-01 $494,990 (10.8%) $632,703 (10.7%) 1.22 1,530
    2023-01-01 $497,400 (8.6%) $639,294 (7.6%) 1.23 1,393
    2023-02-01 $505,995 (3.7%) $653,434 (6.4%) 1.22 1,363
    2023-03-01 $502,757 (2.7%) $653,568 (7.8%) 1.18 1,390
    2023-04-01 $529,080 (5.8%) $676,019 (5.1%) 1.23 1,393
    Salisbury's median listing price for 2023-04-01 was $529,080, a difference of $29,081 (5.8%) versus the prior year and $26,323 versus the prior month.

    Salisbury's median listing price comes in at 123% of the national average.

    Salisbury's average listing price for 2023-04-01 was $676,019, a difference of $32,577 (5.1%) versus the prior year and $22,451 versus the prior month.

    For the 2023-04-01 period, Salisbury had 1,393 MLS listings, a difference of 3 listings (0%) versus the prior month and 323 listings (30%) 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
    2018-01-01 135 days 1,798 sqft
    2018-02-01 131 days 1,800 sqft
    2018-03-01 119 days 1,798 sqft
    2018-04-01 97 days 1,800 sqft
    2018-05-01 95 days 1,822 sqft
    2018-06-01 99 days 1,820 sqft
    2018-07-01 105 days 1,851 sqft
    2018-08-01 109 days 1,851 sqft
    2018-09-01 110 days 1,840 sqft
    2018-10-01 108 days 1,840 sqft
    2018-11-01 108 days 1,831 sqft
    2018-12-01 120 days 1,817 sqft
    2019-01-01 129 days 1,800 sqft
    2019-02-01 130 days 1,792 sqft
    2019-03-01 121 days 1,800 sqft
    2019-04-01 89 days 1,849 sqft
    2019-05-01 91 days 1,865 sqft
    2019-06-01 95 days 1,860 sqft
    2019-07-01 100 days 1,870 sqft
    2019-08-01 109 days 1,900 sqft
    2019-09-01 115 days 1,904 sqft
    2019-10-01 104 days 1,880 sqft
    2019-11-01 102 days 1,866 sqft
    2019-12-01 115 days 1,856 sqft
    2020-01-01 121 days 1,854 sqft
    2020-02-01 114 days 1,861 sqft
    2020-03-01 98 days 1,870 sqft
    2020-04-01 92 days 1,873 sqft
    2020-05-01 105 days 1,892 sqft
    2020-06-01 113 days 1,926 sqft
    2020-07-01 112 days 1,952 sqft
    2020-08-01 80 days 1,949 sqft
    2020-09-01 68 days 1,913 sqft
    2020-10-01 68 days 1,900 sqft
    2020-11-01 72 days 1,879 sqft
    2020-12-01 81 days 1,853 sqft
    2021-01-01 95 days 1,845 sqft
    2021-02-01 91 days 1,848 sqft
    2021-03-01 76 days 1,861 sqft
    2021-04-01 64 days 1,857 sqft
    2021-05-01 57 days 1,897 sqft
    2021-06-01 47 days 1,915 sqft
    2021-07-01 45 days 1,917 sqft
    2021-08-01 52 days 1,888 sqft
    2021-09-01 54 days 1,865 sqft
    2021-10-01 54 days 1,883 sqft
    2021-11-01 54 days 1,873 sqft
    2021-12-01 68 days 1,877 sqft
    2022-01-01 86 days 1,894 sqft
    2022-02-01 73 days 1,958 sqft
    2022-03-01 45 days 1,960 sqft
    2022-04-01 47 days 1,971 sqft
    2022-05-01 49 days 2,000 sqft
    2022-06-01 45 days 2,007 sqft
    2022-07-01 51 days 2,016 sqft
    2022-08-01 57 days 2,024 sqft
    2022-09-01 60 days 2,038 sqft
    2022-10-01 63 days 2,049 sqft
    2022-11-01 64 days 2,012 sqft
    2022-12-01 81 days 2,000 sqft
    2023-01-01 99 days 1,993 sqft
    2023-02-01 101 days 2,017 sqft
    2023-03-01 66 days 2,006 sqft
    2023-04-01 65 days 2,023 sqft
    Salisbury's median listing age (time on market) for 2023-04-01 was 65 days. This is 38% longer than the same period one year ago.

    Salisbury's median square footage for active listings during the 2023-04-01 period was 2,023 sqft. One year prior, the average listing was 1,971 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).