San Diego FHA Loan Rates, Closing Costs & Stats

SAN DIEGO-CHULA VISTA-CARLSBAD, CA

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.

San Diego's 140 lenders originated 2,613 FHA loans during 2023. The total origination value was $1,552,915,000, with an average FHA loan value of $594,303.

San Diego FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in San Diego averaged 6.74% for the week of 2024-05-24, compared to the national average (all FHA variants) of 6.746% for the same period.

San Diego's average FHA mortgage closing costs are $14,840.

The average rate for the prior week (2024-05-17) was 6.54% and one month ago for the week of 2024-04-19, the average rate was 6.55%.

The average rate one year ago was 6.08%.

For refis of the same type during the week of 2024-05-24, the average rate was 6.88%.

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

San Diego 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 San Diego level.

Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
UNITED WHOLESALE MORTGAGE, LLC 669 6.03% $24,291
QUICKEN LOANS, LLC 201 6.06% $21,144
LOANDEPOT.COM, LLC 105 5.72% $20,525
CROSSCOUNTRY MORTGAGE, LLC 94 6.54% $25,168
POINT Mortgage 55 6.27% $23,193
PENNYMAC LOAN SERVICES, LLC 52 6.06% $24,140
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 52 6.29% $21,461
EAGLE HOME MORTGAGE, LLC 29 6.17% $21,248
BROKER SOLUTIONS, INC. 27 6.43% $20,866
NEWREZ LLC 27 6.41% $20,216
KBHS HOME LOANS, LLC 27 5.82% $22,678
FREEDOM MORTGAGE CORPORATION 25 6.39% $22,527
SUN WEST MORTGAGE COMPANY, INC. 24 6.28% $23,127
OCMBC, INC. 24 6.65% $24,181
AMERICAN FINANCIAL NETWORK, INC. 24 6.22% $23,403
GUILD MORTGAGE COMPANY 24 6.40% $24,626
CARDINAL FINANCIAL 22 6.26% $25,818
GUARANTEED RATE, INC. 21 6.15% $23,654
HOMEBRIDGE FINANCIAL SERVICES, INC. 20 6.04% $23,248
Paramount Residential Mortgage Group, Inc. 20 6.82% $21,697
Century Mortgage Company DBA Century Lending Company 19 6.15% $20,980
Sierra Pacific Mortgage Company, Inc. 19 6.12% $25,912
AMERICAN PACIFIC MORTGAGE CORPORATION 18 6.40% $26,226
Nations Lending Corporation 18 6.17% $16,858
MOVEMENT MORTGAGE, LLC 18 6.49% $25,302
SUMMIT FUNDING, INC. 18 6.37% $28,654
BECKAM FUNDING CORP. 17 7.08% $36,109
CMG MORTGAGE, INC. 15 6.32% $21,413
Flagstar Bank, FSB 15 6.26% $24,923
S1L, Inc. 14 6.39% $26,775
Golden Empire Mortgage, Inc. 13 6.71% $28,488
BAY EQUITY LLC 13 6.47% $25,245
JPMorgan Chase Bank 12 6.24% $17,146
Mr. Cooper ( Nationstar Mortgage ) 12 6.10% $32,555
Hometown Equity Mortgage, LLC 11 6.29% $21,073
Equity Prime Mortgage LLC 11 6.30% $24,135
GEO-CORP, INC. 10 7.43% $34,956
MUTUAL OF OMAHA MORTGAGE, INC. 10 6.20% $25,338
Franklin Loan Corporation 10 6.34% $25,041
INTERCAP LENDING INC. 10 6.54% $23,542
Carrington Mortgage Services, LLC 9 6.26% $23,460
HOMEOWNERS FINANCIAL GROUP USA, LLC 9 6.35% $29,647
Shea Mortgage Inc. 8 6.41% $19,495
PLAZA HOME MORTGAGE, INC. 8 6.28% $19,144
CALCON MUTUAL MORTGAGE LLC 8 6.55% $27,949
U.S. Bank 8 6.25% $20,336
PLANET HOME LENDING, LLC 7 6.07% $20,901
American Mortgage & Equity Consultants, Inc. 7 6.64% $18,105
EVERETT FINANCIAL, INC. 7 6.80% $18,726
AXIA FINANCIAL, LLC 7 6.23% $22,782
RESIDENTIAL WHOLESALE MORTGAGE, INC. 6 6.17% $23,143
JMJ FINANCIAL GROUP 6 6.54% $28,163
MORTGAGEONE, INC. 6 6.46% $22,784
NETWORK CAPITAL FUNDING CORPORATION 6 6.40% $19,023
MID AMERICA MORTGAGE, INC. 6 5.77% $8,304
PRIMELENDING, A PLAINSCAPITAL COMPANY 6 6.56% $24,215
RESIDENTIAL BANCORP 5 6.30% $26,597
San Diego Funding 5 6.58% $29,318
Watermark Capital, Inc. 5 5.58% $22,179
CALIBER HOME LOANS, INC. 5 5.83% $23,589
ARK-LA-TEX FINANCIAL SERVICES, LLC. 5 6.20% $39,602
Plains Commerce Bank 5 5.85% $19,492
AMERISAVE MORTGAGE CORPORATION 5 5.50% $30,099
NP, Inc. 5 7.02% $32,730
UNION HOME MORTGAGE CORP. 4 6.03% $23,910
GUARANTEED RATE AFFINITY, LLC 4 6.86% $23,512
First-Citizens Bank & Trust Company 4 5.67% $18,542
LADERA LENDING, INC. 4 6.78% $16,156
LAKEVIEW LOAN SERVICING, LLC 4 6.00% $25,007
VILLAGE CAPITAL MORTGAGE 4 7.00% $15,546
NATIONS DIRECT MORTGAGE, LLC 4 6.66% $21,739
HOMEAMERICAN MORTGAGE CORPORATION 4 5.56% $23,551
Wells Fargo Bank 3 6.92% $12,868
AmeriHome Mortgage Company, LLC 3 5.96% $29,522
MORTGAGE SOLUTIONS OF COLORADO, LLC 3 6.92% $32,114
PANORAMA MORTGAGE GROUP, LLC 3 6.29% $27,207
ZILLOW HOME LOANS, LLC 3 6.08% $18,269
TOP FLITE FINANCIAL, INC. 3 6.83% $11,433
Prosperity Home Mortgage, LLC 3 6.16% $19,038
DATA MORTGAGE, INC. 3 6.54% $30,335
HOMESIDE FINANCIAL, LLC 3 5.63% $22,822
VERITAS FUNDING, LLC 3 6.17% $24,992
Mortgage Research Center, LLC 3 6.00% $14,704
CORNERSTONE HOME LENDING, INC. 2 6.50% $22,273
Bank of England 2 5.94% $24,674
Barrington Bank & Trust Company, N.A. 2 5.50% $19,850
Cornerstone First Mortgage, Inc 2 6.25% $19,629
GENEVA FINANCIAL, LLC 2 6.94% $28,031
MORIA DEVELOPMENT, INC. 2 6.56% $27,255
MOUNTAIN WEST FINANCIAL, INC. 2 5.63% $33,926
PENTAGON FEDERAL CREDIT UNION 2 5.81% $22,559
SECURITYNATIONAL MORTGAGE COMPANY 2 7.19% $33,052
The Federal Savings Bank 2 6.31% $25,693
M&T Bank 1 6.25% $19,581
MORTGAGE MANAGEMENT CONSULTANTS, INC. 1 6.25% $7,276
OCEANSIDE MORTGAGE COMPANY 1 6.63% $16,895
ML Mortgage Corp. 1 6.25% $27,016
ONY GLO, INC. 1 5.63% $27,740
PACIFIC RESIDENTIAL MORTGAGE, LLC 1 6.75% $16,895
MK LENDING CORP. 1 5.75% $20,048
MASON MCDUFFIE MORTGAGE CORPORATION 1 6.75% $18,207
MANN FINANCIAL INC. 1 6.63% $21,157
AMERICAN FINANCIAL RESOURCES, INC. 1 7.25% $14,748
Performance Financial, Inc. 1 5.63% $21,792
PHH Mortgage Corporation 1 5.63% $19,105
LOANPAL, LLC 1 5.63% $30,753
ISERVE RESIDENTIAL LENDING, LLC 1 7.13% $21,968
INSPIRE HOME LOANS INC. 1 5.88% $18,939
Great Plains National Bank 1 5.63% $11,312
PREMIA MORTGAGE, LLC 1 6.75% $15,958
PREMIER MORTGAGE RESOURCES, L.L.C. 1 7.50% $12,584
PRIMARY RESIDENTIAL MORTGAGE, INC. 1 6.25% $23,105
First Savings Bank 1 6.25% $24,393
FIRST NATIONS HOME FINANCE CORPORATION 1 6.25% $14,471
Fifth Third Bank 1 6.63% $10,252
ENVOY MORTGAGE, LTD 1 6.00% $38,931
EMBRACE HOME LOANS, INC. 1 5.99% $22,174
ACADEMY MORTGAGE CORPORATION 1 5.75% $34,801
Commerce Home Mortgage, Inc. 1 6.88% $17,894
SCHOOLSFIRST 1 5.88% $20,072
AHL FUNDING 1 7.13% $14,944
Citizens Bank 1 5.75% $16,006
CHURCHILL MORTGAGE CORPORATION 1 5.25% $44,632
ST FIN CORP 1 6.38% $28,525
CASTLE & COOKE MORTGAGE, LLC 1 5.75% $23,860
CAMPOS FINANCIAL CORP. 1 6.25% $21,041
Zions Bank 1 7.13% $23,083
THE GOLDEN 1 1 6.38% $32,527
BNC National Bank 1 5.25% $29,574
BM Real Estate Services, Inc. 1 5.75% $36,700
BETTER MORTGAGE CORPORATION 1 6.13% $43,481
BAYSHORE MORTGAGE FUNDING, LLC 1 6.13% $23,984
Axos Bank 1 6.75% $18,902
Ameris Bank 1 6.13% $10,922
V.I.P. MORTGAGE, INC. 1 5.38% $17,541
AMERICAN FINANCING CORPORATION 1 6.25% $19,109
Waterstone Mortgage Corporation 1 6.13% $42,266
NBKC BANK 1 5.38% $13,853
MY MORTGAGE, INC. 1 6.25% $16,417
NEW DAY FINANCIAL, LLC 1 6.75% $3,398

The top San Diego FHA lender as defined by loan originations is UNITED WHOLESALE MORTGAGE, LLC, with 669 FHA loans originated. Their average total fees are $24,291, which is $3,147 higher than the next largest lender, QUICKEN LOANS, LLC.

The lowest fee San Diego FHA lenders (with over 10 loans originated) are Nations Lending Corporation ($16,858), JPMorgan Chase Bank ($17,146), NEWREZ LLC ($20,216), LOANDEPOT.COM, LLC ($20,525) and BROKER SOLUTIONS, INC. ($20,866).

The lowest rate San Diego FHA lenders (with over 10 loans originated) are LOANDEPOT.COM, LLC (5.72%), KBHS HOME LOANS, LLC (5.82%), UNITED WHOLESALE MORTGAGE, LLC (6.03%), HOMEBRIDGE FINANCIAL SERVICES, INC. (6.04%) and QUICKEN LOANS, LLC (6.06%).

San Diego FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
SAN DIEGO-CHULA VISTA-CARLSBAD, CA SAN DIEGO 2022 $879,750 $1,126,250 $1,361,350 $1,691,850
SAN DIEGO-CHULA VISTA-CARLSBAD, CA SAN DIEGO 2023 $977,500 $1,251,400 $1,512,650 $1,879,850

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - San Diego (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 $679,450 (5.0%) $1,222,393 (0.5%) 2.52 4,269
2018-02-01 $693,299 (3.9%) $1,240,565 (-1.5%) 2.52 4,506
2018-03-01 $699,000 (3.2%) $1,243,847 (-0.9%) 2.45 4,932
2018-04-01 $699,900 (0.1%) $1,226,489 (-3.8%) 2.37 5,569
2018-05-01 $704,337 (0.6%) $1,226,065 (-3.9%) 2.35 5,987
2018-06-01 $710,000 (1.4%) $1,213,368 (-3.0%) 2.37 6,377
2018-07-01 $699,000 (0.0%) $1,184,991 (-4.5%) 2.33 6,978
2018-08-01 $684,500 (-0.7%) $1,161,104 (-4.9%) 2.29 7,490
2018-09-01 $675,990 (-0.4%) $1,113,534 (-7.9%) 2.27 7,777
2018-10-01 $669,000 (-0.8%) $1,088,623 (-9.4%) 2.27 7,879
2018-11-01 $659,950 (-0.8%) $1,076,657 (-11.2%) 2.24 7,805
2018-12-01 $659,000 (-3.0%) $1,087,930 (-13.0%) 2.27 6,539
2019-01-01 $659,250 (-3.0%) $1,085,070 (-11.2%) 2.28 6,331
2019-02-01 $669,200 (-3.5%) $1,108,895 (-10.6%) 2.26 6,366
2019-03-01 $684,968 (-2.0%) $1,135,864 (-8.7%) 2.24 6,365
2019-04-01 $701,950 (0.3%) $1,166,051 (-4.9%) 2.23 6,430
2019-05-01 $717,000 (1.8%) $1,164,997 (-5.0%) 2.24 6,800
2019-06-01 $720,000 (1.4%) $1,209,593 (-0.3%) 2.25 6,898
2019-07-01 $712,000 (1.9%) $1,191,632 (0.6%) 2.23 7,000
2019-08-01 $710,909 (3.9%) $1,177,659 (1.4%) 2.25 6,848
2019-09-01 $704,773 (4.3%) $1,182,351 (6.2%) 2.26 6,587
2019-10-01 $705,682 (5.5%) $1,193,127 (9.6%) 2.28 6,343
2019-11-01 $714,945 (8.3%) $1,277,024 (18.6%) 2.34 5,658
2019-12-01 $717,400 (8.9%) $1,258,384 (15.7%) 2.39 4,704
2020-01-01 $711,725 (8.0%) $1,259,678 (16.1%) 2.38 4,219
2020-02-01 $725,000 (8.3%) $1,286,377 (16.0%) 2.37 4,080
2020-03-01 $749,000 (9.4%) $1,283,387 (13.0%) 2.35 4,291
2020-04-01 $725,000 (3.3%) $1,244,868 (6.8%) 2.27 4,666
2020-05-01 $749,000 (4.5%) $1,236,089 (6.1%) 2.28 4,812
2020-06-01 $767,000 (6.5%) $1,353,937 (11.9%) 2.26 4,393
2020-07-01 $789,500 (10.9%) $1,342,353 (12.7%) 2.29 4,087
2020-08-01 $784,000 (10.3%) $1,398,771 (18.8%) 2.25 3,883
2020-09-01 $775,000 (10.0%) $1,411,731 (19.4%) 2.22 3,843
2020-10-01 $775,000 (9.8%) $1,435,239 (20.3%) 2.22 3,809
2020-11-01 $762,000 (6.6%) $1,447,998 (13.4%) 2.23 3,441
2020-12-01 $768,375 (7.1%) $1,499,059 (19.1%) 2.29 2,787
2021-01-01 $775,000 (8.9%) $1,632,753 (29.6%) 2.31 2,357
2021-02-01 $784,000 (8.1%) $1,617,394 (25.7%) 2.28 2,192
2021-03-01 $786,950 (5.1%) $1,564,283 (21.9%) 2.23 2,197
2021-04-01 $799,450 (10.3%) $1,616,523 (29.9%) 2.16 2,270
2021-05-01 $799,000 (6.7%) $1,560,459 (26.2%) 2.12 2,548
2021-06-01 $809,950 (5.6%) $1,523,939 (12.6%) 2.13 2,854
2021-07-01 $819,000 (3.7%) $1,486,353 (10.7%) 2.16 3,130
2021-08-01 $821,650 (4.8%) $1,478,471 (5.7%) 2.19 3,099
2021-09-01 $802,500 (3.6%) $1,499,160 (6.2%) 2.14 2,865
2021-10-01 $825,000 (6.5%) $1,559,805 (8.7%) 2.20 2,553
2021-11-01 $834,000 (9.5%) $1,583,624 (9.4%) 2.23 2,111
2021-12-01 $822,750 (7.1%) $1,659,581 (10.7%) 2.23 1,619
2022-01-01 $848,500 (9.5%) $1,795,695 (10.0%) 2.29 1,464
2022-02-01 $850,000 (8.4%) $1,781,404 (10.1%) 2.21 1,484
2022-03-01 $881,500 (12.0%) $1,740,499 (11.3%) 2.21 1,656
2022-04-01 $900,000 (12.6%) $1,709,012 (5.7%) 2.15 1,926
2022-05-01 $926,750 (16.0%) $1,590,139 (1.9%) 2.12 2,779
2022-06-01 $949,000 (17.2%) $1,530,457 (0.4%) 2.11 3,572
2022-07-01 $899,900 (9.9%) $1,479,948 (-0.4%) 2.03 4,560
2022-08-01 $897,000 (9.2%) $1,476,135 (-0.2%) 2.07 4,494
2022-09-01 $888,699 (10.7%) $1,470,572 (-1.9%) 2.08 4,154
2022-10-01 $890,000 (7.9%) $1,450,137 (-7.0%) 2.09 4,137
2022-11-01 $884,500 (6.1%) $1,442,386 (-8.9%) 2.13 3,985
2022-12-01 $899,000 (9.3%) $1,486,085 (-10.5%) 2.22 3,159
2023-01-01 $904,700 (6.6%) $1,567,702 (-12.7%) 2.24 2,599
2023-02-01 $931,999 (9.7%) $1,640,832 (-7.9%) 2.25 2,290
2023-03-01 $949,500 (7.7%) $1,705,029 (-2.0%) 2.24 2,067
2023-04-01 $999,950 (11.1%) $1,882,399 (10.2%) 2.33 1,952
2023-05-01 $1,055,000 (13.8%) $1,904,280 (19.8%) 2.39 2,065
2023-06-01 $1,092,500 (15.1%) $1,948,369 (27.3%) 2.46 2,284
2023-07-01 $1,098,000 (22.0%) $1,947,120 (31.6%) 2.50 2,447
2023-08-01 $1,099,450 (22.6%) $1,931,373 (30.8%) 2.52 2,488
2023-09-01 $1,050,000 (18.2%) $1,845,525 (25.5%) 2.44 2,622
2023-10-01 $999,000 (12.3%) $1,788,060 (23.3%) 2.35 2,848
2023-11-01 $995,000 (12.5%) $1,770,030 (22.7%) 2.37 2,929
2023-12-01 $980,000 (9.0%) $1,829,738 (23.1%) 2.39 2,619
2024-01-01 $977,000 (8.0%) $1,834,937 (17.1%) 2.39 2,452
2024-02-01 $996,500 (6.9%) $1,831,972 (11.7%) 2.40 2,424
2024-03-01 $998,000 (5.1%) $1,792,747 (5.1%) 2.35 2,611
2024-04-01 $1,050,000 (5.0%) $1,824,636 (-3.1%) 2.44 2,941
San Diego's median listing price for 2024-04-01 was $1,050,000, a difference of $50,050 (5.0%) versus the prior year and $52,000 versus the prior month.

San Diego's median listing price comes in at 244% of the national average.

San Diego's average listing price for 2024-04-01 was $1,824,636, a difference of $-57,763 (-3.1%) versus the prior year and $31,889 versus the prior month.

For the 2024-04-01 period, San Diego had 2,941 MLS listings, a difference of 330 listings (13%) versus the prior month and 989 listings (51%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - San Diego (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 39 days 1,843 sqft
2018-02-01 29 days 1,853 sqft
2018-03-01 29 days 1,882 sqft
2018-04-01 29 days 1,904 sqft
2018-05-01 28 days 1,913 sqft
2018-06-01 29 days 1,908 sqft
2018-07-01 31 days 1,858 sqft
2018-08-01 31 days 1,815 sqft
2018-09-01 35 days 1,800 sqft
2018-10-01 36 days 1,790 sqft
2018-11-01 39 days 1,779 sqft
2018-12-01 47 days 1,786 sqft
2019-01-01 45 days 1,762 sqft
2019-02-01 32 days 1,777 sqft
2019-03-01 34 days 1,815 sqft
2019-04-01 33 days 1,855 sqft
2019-05-01 32 days 1,874 sqft
2019-06-01 40 days 1,881 sqft
2019-07-01 42 days 1,871 sqft
2019-08-01 43 days 1,859 sqft
2019-09-01 43 days 1,839 sqft
2019-10-01 44 days 1,831 sqft
2019-11-01 47 days 1,824 sqft
2019-12-01 58 days 1,798 sqft
2020-01-01 55 days 1,781 sqft
2020-02-01 39 days 1,800 sqft
2020-03-01 39 days 1,806 sqft
2020-04-01 43 days 1,754 sqft
2020-05-01 46 days 1,784 sqft
2020-06-01 43 days 1,787 sqft
2020-07-01 43 days 1,789 sqft
2020-08-01 37 days 1,728 sqft
2020-09-01 38 days 1,695 sqft
2020-10-01 40 days 1,696 sqft
2020-11-01 47 days 1,679 sqft
2020-12-01 57 days 1,686 sqft
2021-01-01 52 days 1,671 sqft
2021-02-01 37 days 1,672 sqft
2021-03-01 34 days 1,659 sqft
2021-04-01 32 days 1,687 sqft
2021-05-01 28 days 1,664 sqft
2021-06-01 27 days 1,666 sqft
2021-07-01 29 days 1,670 sqft
2021-08-01 30 days 1,685 sqft
2021-09-01 33 days 1,674 sqft
2021-10-01 34 days 1,674 sqft
2021-11-01 37 days 1,677 sqft
2021-12-01 45 days 1,654 sqft
2022-01-01 39 days 1,637 sqft
2022-02-01 26 days 1,633 sqft
2022-03-01 24 days 1,680 sqft
2022-04-01 23 days 1,714 sqft
2022-05-01 22 days 1,707 sqft
2022-06-01 24 days 1,730 sqft
2022-07-01 30 days 1,699 sqft
2022-08-01 36 days 1,680 sqft
2022-09-01 40 days 1,673 sqft
2022-10-01 39 days 1,679 sqft
2022-11-01 44 days 1,686 sqft
2022-12-01 54 days 1,698 sqft
2023-01-01 54 days 1,690 sqft
2023-02-01 38 days 1,682 sqft
2023-03-01 37 days 1,733 sqft
2023-04-01 33 days 1,800 sqft
2023-05-01 30 days 1,839 sqft
2023-06-01 31 days 1,860 sqft
2023-07-01 31 days 1,835 sqft
2023-08-01 33 days 1,803 sqft
2023-09-01 35 days 1,780 sqft
2023-10-01 34 days 1,717 sqft
2023-11-01 37 days 1,686 sqft
2023-12-01 44 days 1,672 sqft
2024-01-01 43 days 1,640 sqft
2024-02-01 33 days 1,639 sqft
2024-03-01 32 days 1,650 sqft
2024-04-01 33 days 1,685 sqft
San Diego's median listing age (time on market) for 2024-04-01 was 33 days. This is 0% longer than the same period one year ago.

San Diego's median square footage for active listings during the 2024-04-01 period was 1,685 sqft. One year prior, the average listing was 1,800 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).