Savannah FHA Loan Rates, Closing Costs & Stats

SAVANNAH, GA

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.

Savannah's 139 lenders originated 1,530 FHA loans during 2023. The total origination value was $418,610,000, with an average FHA loan value of $273,601.

Savannah FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Savannah averaged 6.62% for the week of 2024-05-10, compared to the national average (all FHA variants) of 6.786% for the same period.

Savannah's average FHA mortgage closing costs are $8,197.

The average rate for the prior week (2024-05-03) was 6.61% and one month ago for the week of 2024-04-05, the average rate was 6.3%.

The average rate one year ago was 6.31%.

For refis of the same type during the week of 2024-05-10, the average rate was 7.06%.

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

Savannah 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 Savannah level.

Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
QUICKEN LOANS, LLC 188 6.15% $11,131
UNITED WHOLESALE MORTGAGE, LLC 157 6.19% $12,516
BROKER SOLUTIONS, INC. 134 6.34% $11,313
BANKSOUTH MORTGAGE COMPANY, LLC 57 6.24% $13,256
GUARANTEED RATE, INC. 56 6.25% $11,229
DHI MORTGAGE COMPANY, LTD. 49 5.33% $9,013
PENNYMAC LOAN SERVICES, LLC 48 5.88% $12,395
GUILD MORTGAGE COMPANY 43 6.74% $12,350
MOVEMENT MORTGAGE, LLC 37 6.65% $12,081
Flagstar Bank, FSB 36 6.45% $11,680
VANDERBILT MORTGAGE AND FINANCE, INC. 30 6.70% $11,576
SOUTHPOINT FINANCIAL SERVICES, INC. 28 7.00% $10,082
TOWNE MORTGAGE COMPANY 24 6.52% $11,984
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 23 6.54% $10,782
Plains Commerce Bank 22 6.04% $14,060
FREEDOM MORTGAGE CORPORATION 19 6.89% $12,112
Ameris Bank 19 6.25% $13,134
EAGLE HOME MORTGAGE, LLC 17 5.81% $14,320
Colony Bank 17 6.38% $12,454
LOANDEPOT.COM, LLC 14 6.34% $12,312
HOMESTAR FINANCIAL CORPORATION 14 6.42% $8,429
Mortgage Research Center, LLC 13 6.68% $9,237
AMERISAVE MORTGAGE CORPORATION 13 6.21% $13,169
JET HOMELOANS, LLC 13 6.45% $10,770
Carrington Mortgage Services, LLC 13 6.64% $12,424
Mr. Cooper ( Nationstar Mortgage ) 12 6.21% $13,830
AMERICAN FINANCIAL NETWORK, INC. 12 6.61% $13,374
CARDINAL FINANCIAL 12 6.55% $13,702
Northpointe Bank 11 6.24% $9,351
NFM, INC. 11 7.19% $13,837
ACADEMY MORTGAGE CORPORATION 10 6.39% $15,168
NEWREZ LLC 9 6.12% $14,997
AMERICAN PACIFIC MORTGAGE CORPORATION 9 6.49% $13,412
MUTUAL OF OMAHA MORTGAGE, INC. 9 6.53% $15,114
SUCCESS MORTGAGE PARTNERS, INC. 8 6.30% $13,586
PLANET HOME LENDING, LLC 8 6.28% $12,251
Magnolia Bank 8 6.20% $9,520
SUMMIT FUNDING, INC. 8 7.11% $12,430
HOMESPIRE MORTGAGE CORPORATION 7 6.54% $8,353
CROSSCOUNTRY MORTGAGE, LLC 7 6.57% $10,698
Renasant Bank 7 6.45% $12,675
LAKEVIEW LOAN SERVICING, LLC 6 6.50% $12,357
Prosperity Home Mortgage, LLC 6 5.85% $14,296
Truist 6 5.73% $9,437
Wells Fargo Bank 6 6.38% $8,185
MILEND, INC. 6 6.40% $14,588
VILLAGE CAPITAL MORTGAGE 5 6.08% $12,433
OCMBC, INC. 5 6.85% $14,645
SOUTHEAST MORTGAGE OF GEORGIA, INC. 5 6.50% $13,988
AMERICAN FINANCING CORPORATION 5 6.43% $14,194
SUN WEST MORTGAGE COMPANY, INC. 5 6.28% $15,035
Equity Prime Mortgage LLC 5 6.70% $12,996
FIRST CONTINENTAL MORTGAGE, LTD. 4 7.00% $7,789
RESIDENTIAL HOME FUNDING CORP. 4 6.72% $9,477
CMG MORTGAGE, INC. 4 6.34% $13,576
PULTE MORTGAGE LLC 4 6.06% $10,063
MEMBER FIRST MORTGAGE, LLC 4 6.56% $9,516
CANOPY MORTGAGE, LLC 4 6.47% $9,442
LOANPAL, LLC 4 5.59% $14,076
SWBC MORTGAGE CORPORATION 4 7.00% $9,587
Queensborough National Bank & Trust Company 3 6.13% $8,894
The Federal Savings Bank 3 6.88% $16,835
HOMEBRIDGE FINANCIAL SERVICES, INC. 3 6.66% $10,380
AmeriHome Mortgage Company, LLC 3 6.92% $8,938
Lakeview Community Capital, LLC 3 5.92% $13,891
RELIANCE FIRST CAPITAL, LLC 3 7.33% $11,279
ATLANTIC BAY MORTGAGE GROUP, L.L.C. 3 6.75% $8,945
Nations Lending Corporation 3 6.13% $16,097
Neighborhood Loans, Inc. 3 6.29% $15,434
NBH Bank 2 6.88% $7,173
Regions Bank 2 5.50% $14,833
EVERETT FINANCIAL, INC. 2 7.00% $21,659
Loan Simple, Inc. 2 7.44% $15,499
United Community Bank 2 5.88% $12,819
CALIBER HOME LOANS, INC. 2 6.25% $9,256
TOP FLITE FINANCIAL, INC. 2 7.00% $15,840
MID AMERICA MORTGAGE, INC. 2 7.50% $7,247
UNION HOME MORTGAGE CORP. 2 6.50% $16,397
NEW DAY FINANCIAL, LLC 2 7.13% $2,828
Franklin Loan Corporation 2 5.88% $14,568
MORTGAGE SOLUTIONS OF COLORADO, LLC 2 6.69% $22,533
PLAZA HOME MORTGAGE, INC. 2 7.00% $10,891
Platinum Home Mortgage Corporation 2 6.75% $18,200
M&T Bank 2 6.69% $7,165
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 2 6.75% $20,430
RUOFF MORTGAGE COMPANY, INC. 2 7.44% $5,758
BAY EQUITY LLC 2 6.25% $13,236
Wolfe Financial, Inc 2 7.38% $13,248
South State Bank 2 6.44% $8,926
EUSTIS AND AMERICAN MORTGAGE COMPANY 2 6.06% $19,911
LIBERTY HOME MORTGAGE CORPORATION 1 7.38% $4,468
ACOPIA, LLC 1 6.99% $11,123
Alcova Mortgage LLC 1 6.13% $15,858
ALLIED MORTGAGE GROUP, INC. 1 5.88% $15,376
AMERICAN FINANCIAL RESOURCES, INC. 1 7.00% $10,442
AMERICAN PORTFOLIO MORTGAGE CORPORATION 1 6.63% $12,017
ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 7.13% $31,280
Armed Forces Bank 1 6.38% $17,354
Bank of America 1 6.88% $7,020
Barrington Bank & Trust Company, N.A. 1 6.75% $12,820
CALCON MUTUAL MORTGAGE LLC 1 7.25% $17,592
Century Mortgage Company DBA Century Lending Company 1 6.75% $9,665
CERTAINTY HOME LOANS, LLC 1 6.63% $6,952
CHURCHILL MORTGAGE CORPORATION 1 6.25% $10,490
Citizens Bank 1 7.75% $12,148
CONTOUR MORTGAGE CORPORATION 1 5.75% $9,391
Credence Funding Corporation 1 6.50% $5,264
DELMAR FINANCIAL COMPANY 1 7.00% $8,400
DIRECT MORTGAGE, CORP. 1 5.75% $11,083
DIRECT MORTGAGE LOANS, LLC 1 5.75% $16,724
EQUITY RESOURCES, INC. 1 6.99% $8,420
FIRST ALLIANCE HOME MORTGAGE, LLC 1 6.75% $13,598
GARDNER FINANCIAL SERVICES, LTD. 1 6.13% $23,227
GEO-CORP, INC. 1 6.88% $15,653
GMFS LLC 1 7.25% $6,311
GUARANTY HOME MORTGAGE CORPORATION 1 7.13% $4,868
HOMESIDE FINANCIAL, LLC 1 6.75% $20,588
INTERCOASTAL MORTGAGE COMPANY 1 6.88% $8,924
JMAC LENDING, INC. 1 6.38% $10,369
JPMorgan Chase Bank 1 7.75% $6,438
K. HOVNANIAN AMERICAN MORTGAGE, L.L.C. 1 4.75% $11,223
LEADERONE FINANCIAL CORPORATION 1 5.75% $12,379
ABSOLUTE HOME MORTGAGE CORPORATION 1 6.75% $9,451
MEADOWBROOK FINANCIAL MORTGAGE BANKERS CORP. 1 6.75% $18,100
MORTGAGE ACCESS CORP. 1 6.63% $23,556
NexBank 1 6.50% $12,777
Paramount Residential Mortgage Group, Inc. 1 6.75% $14,272
PENTAGON FEDERAL CREDIT UNION 1 4.88% $11,734
PREMIA MORTGAGE, LLC 1 7.13% $6,649
PRIMELENDING, A PLAINSCAPITAL COMPANY 1 6.13% $21,069
RESIDENTIAL BANCORP 1 6.63% $12,793
RESOURCE FINANCIAL SERVICES, INC. 1 6.75% $8,159
SeaTrust Mortgage Company 1 6.50% $21,560
STOCKTON MORTGAGE CORPORATION 1 5.75% $15,744
Synovus Bank 1 5.50% $11,853
THE MORTGAGE FIRM, INC. 1 6.63% $7,328
U.S. Bank 1 7.25% $8,890
VAN DYK MORTGAGE CORPORATION 1 7.13% $14,363
Waterstone Mortgage Corporation 1 6.13% $20,807

The top Savannah FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 188 FHA loans originated. Their average total fees are $11,131, which is $1,385 lower than the next largest lender, UNITED WHOLESALE MORTGAGE, LLC.

The lowest fee Savannah FHA lenders (with over 10 loans originated) are HOMESTAR FINANCIAL CORPORATION ($8,429), DHI MORTGAGE COMPANY, LTD. ($9,013), Mortgage Research Center, LLC ($9,237), Northpointe Bank ($9,351) and SOUTHPOINT FINANCIAL SERVICES, INC. ($10,082).

The lowest rate Savannah FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.33%), EAGLE HOME MORTGAGE, LLC (5.81%), PENNYMAC LOAN SERVICES, LLC (5.88%), Plains Commerce Bank (6.04%) and QUICKEN LOANS, LLC (6.15%).

Savannah FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
SAVANNAH, GA BRYAN 2022 $420,680 $538,650 $651,050 $809,150
SAVANNAH, GA CHATHAM 2022 $420,680 $538,650 $651,050 $809,150
SAVANNAH, GA EFFINGHAM 2022 $420,680 $538,650 $651,050 $809,150
SAVANNAH, GA BRYAN 2023 $472,030 $604,400 $730,525 $907,900
SAVANNAH, GA CHATHAM 2023 $472,030 $604,400 $730,525 $907,900
SAVANNAH, GA EFFINGHAM 2023 $472,030 $604,400 $730,525 $907,900

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Savannah (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 $266,650 (6.9%) $384,285 (12.1%) 0.99 2,367
2018-02-01 $274,623 (6.7%) $387,796 (9.6%) 1.00 2,425
2018-03-01 $279,000 (6.3%) $388,826 (7.6%) 0.98 2,526
2018-04-01 $279,561 (5.5%) $388,248 (5.9%) 0.95 2,542
2018-05-01 $279,900 (5.6%) $388,548 (6.0%) 0.93 2,563
2018-06-01 $279,000 (4.3%) $381,338 (2.9%) 0.93 2,591
2018-07-01 $279,900 (5.2%) $384,867 (3.2%) 0.93 2,529
2018-08-01 $275,071 (4.6%) $382,995 (4.0%) 0.92 2,467
2018-09-01 $279,250 (5.4%) $389,745 (5.5%) 0.94 2,417
2018-10-01 $279,500 (7.3%) $393,779 (6.1%) 0.95 2,445
2018-11-01 $278,975 (5.3%) $392,039 (4.1%) 0.95 2,542
2018-12-01 $278,000 (4.9%) $395,523 (4.3%) 0.96 2,500
2019-01-01 $278,200 (4.3%) $402,217 (4.7%) 0.96 2,427
2019-02-01 $283,555 (3.3%) $410,377 (5.8%) 0.96 2,412
2019-03-01 $288,186 (3.3%) $417,281 (7.3%) 0.94 2,434
2019-04-01 $291,423 (4.2%) $419,903 (8.2%) 0.93 2,487
2019-05-01 $289,950 (3.6%) $419,564 (8.0%) 0.91 2,484
2019-06-01 $290,000 (3.9%) $421,639 (10.6%) 0.91 2,443
2019-07-01 $290,363 (3.7%) $418,300 (8.7%) 0.91 2,438
2019-08-01 $291,845 (6.1%) $416,150 (8.7%) 0.92 2,437
2019-09-01 $293,564 (5.1%) $414,237 (6.3%) 0.94 2,449
2019-10-01 $294,709 (5.4%) $412,962 (4.9%) 0.95 2,446
2019-11-01 $294,000 (5.4%) $414,040 (5.6%) 0.96 2,356
2019-12-01 $295,600 (6.3%) $422,490 (6.8%) 0.99 2,328
2020-01-01 $297,445 (6.9%) $424,131 (5.5%) 0.99 2,195
2020-02-01 $299,900 (5.8%) $430,805 (5.0%) 0.98 2,211
2020-03-01 $304,888 (5.8%) $435,587 (4.4%) 0.96 2,182
2020-04-01 $300,367 (3.1%) $430,237 (2.5%) 0.94 2,215
2020-05-01 $309,000 (6.6%) $437,326 (4.2%) 0.94 2,120
2020-06-01 $318,564 (9.9%) $445,897 (5.8%) 0.94 1,966
2020-07-01 $322,350 (11.0%) $451,189 (7.9%) 0.93 1,850
2020-08-01 $322,990 (10.7%) $457,713 (10.0%) 0.93 1,704
2020-09-01 $325,000 (10.7%) $472,791 (14.1%) 0.93 1,618
2020-10-01 $319,000 (8.2%) $469,196 (13.6%) 0.91 1,564
2020-11-01 $304,360 (3.5%) $455,906 (10.1%) 0.89 1,537
2020-12-01 $300,000 (1.5%) $452,665 (7.1%) 0.89 1,414
2021-01-01 $305,000 (2.5%) $464,487 (9.5%) 0.91 1,204
2021-02-01 $306,788 (2.3%) $482,200 (11.9%) 0.89 1,009
2021-03-01 $312,060 (2.4%) $500,798 (15.0%) 0.89 832
2021-04-01 $319,725 (6.4%) $496,215 (15.3%) 0.87 759
2021-05-01 $321,308 (4.0%) $516,510 (18.1%) 0.85 737
2021-06-01 $322,484 (1.2%) $526,045 (18.0%) 0.85 726
2021-07-01 $329,000 (2.1%) $523,504 (16.0%) 0.87 791
2021-08-01 $329,500 (2.0%) $526,566 (15.0%) 0.88 776
2021-09-01 $329,248 (1.3%) $537,634 (13.7%) 0.88 768
2021-10-01 $339,857 (6.5%) $546,272 (16.4%) 0.91 733
2021-11-01 $339,102 (11.4%) $543,500 (19.2%) 0.91 654
2021-12-01 $349,450 (16.5%) $560,952 (23.9%) 0.95 602
2022-01-01 $349,610 (14.6%) $577,187 (24.3%) 0.95 494
2022-02-01 $372,080 (21.3%) $616,999 (28.0%) 0.97 422
2022-03-01 $383,128 (22.8%) $629,561 (25.7%) 0.96 436
2022-04-01 $395,000 (23.5%) $640,365 (29.1%) 0.94 453
2022-05-01 $394,725 (22.9%) $609,964 (18.1%) 0.90 603
2022-06-01 $399,900 (24.0%) $607,843 (15.6%) 0.89 695
2022-07-01 $404,783 (23.0%) $611,263 (16.8%) 0.91 833
2022-08-01 $399,000 (21.1%) $589,445 (11.9%) 0.92 941
2022-09-01 $399,900 (21.5%) $601,230 (11.8%) 0.93 953
2022-10-01 $399,999 (17.7%) $606,430 (11.0%) 0.94 1,005
2022-11-01 $399,642 (17.9%) $594,388 (9.4%) 0.96 1,046
2022-12-01 $399,900 (14.4%) $595,112 (6.1%) 0.99 1,006
2023-01-01 $399,495 (14.3%) $594,455 (3.0%) 0.99 900
2023-02-01 $399,048 (7.3%) $612,638 (-0.7%) 0.96 757
2023-03-01 $408,963 (6.7%) $625,703 (-0.6%) 0.96 758
2023-04-01 $427,990 (8.4%) $665,390 (3.9%) 1.00 695
2023-05-01 $432,475 (9.6%) $678,283 (11.2%) 0.98 744
2023-06-01 $432,173 (8.1%) $855,227 (40.7%) 0.97 794
2023-07-01 $425,000 (5.0%) $850,067 (39.1%) 0.97 797
2023-08-01 $425,000 (6.5%) $840,638 (42.6%) 0.98 825
2023-09-01 $429,941 (7.5%) $834,273 (38.8%) 1.00 879
2023-10-01 $426,604 (6.7%) $819,183 (35.1%) 1.00 998
2023-11-01 $417,000 (4.3%) $809,333 (36.2%) 0.99 1,055
2023-12-01 $420,700 (5.2%) $796,283 (33.8%) 1.03 1,027
2024-01-01 $420,250 (5.2%) $827,494 (39.2%) 1.03 938
2024-02-01 $430,123 (7.8%) $871,661 (42.3%) 1.04 920
2024-03-01 $439,900 (7.6%) $887,067 (41.8%) 1.04 939
2024-04-01 $429,849 (0.4%) $858,751 (29.1%) 1.00 1,083
Savannah's median listing price for 2024-04-01 was $429,849, a difference of $1,859 (0.4%) versus the prior year and $-10,051 versus the prior month.

Savannah's median listing price comes in at 100% of the national average.

Savannah's average listing price for 2024-04-01 was $858,751, a difference of $193,361 (29.1%) versus the prior year and $-28,316 versus the prior month.

For the 2024-04-01 period, Savannah had 1,083 MLS listings, a difference of 144 listings (15%) versus the prior month and 388 listings (56%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Savannah (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 92 days 2,173 sqft
2018-02-01 83 days 2,200 sqft
2018-03-01 61 days 2,248 sqft
2018-04-01 64 days 2,264 sqft
2018-05-01 66 days 2,239 sqft
2018-06-01 68 days 2,224 sqft
2018-07-01 72 days 2,228 sqft
2018-08-01 77 days 2,192 sqft
2018-09-01 79 days 2,210 sqft
2018-10-01 77 days 2,201 sqft
2018-11-01 75 days 2,202 sqft
2018-12-01 81 days 2,202 sqft
2019-01-01 89 days 2,200 sqft
2019-02-01 92 days 2,212 sqft
2019-03-01 78 days 2,238 sqft
2019-04-01 65 days 2,263 sqft
2019-05-01 64 days 2,280 sqft
2019-06-01 67 days 2,294 sqft
2019-07-01 71 days 2,293 sqft
2019-08-01 73 days 2,289 sqft
2019-09-01 76 days 2,289 sqft
2019-10-01 78 days 2,286 sqft
2019-11-01 84 days 2,273 sqft
2019-12-01 88 days 2,244 sqft
2020-01-01 95 days 2,247 sqft
2020-02-01 87 days 2,250 sqft
2020-03-01 69 days 2,296 sqft
2020-04-01 74 days 2,290 sqft
2020-05-01 78 days 2,300 sqft
2020-06-01 80 days 2,295 sqft
2020-07-01 71 days 2,346 sqft
2020-08-01 64 days 2,312 sqft
2020-09-01 65 days 2,271 sqft
2020-10-01 65 days 2,203 sqft
2020-11-01 64 days 2,147 sqft
2020-12-01 69 days 2,104 sqft
2021-01-01 75 days 2,097 sqft
2021-02-01 57 days 2,056 sqft
2021-03-01 45 days 2,036 sqft
2021-04-01 41 days 2,055 sqft
2021-05-01 33 days 2,103 sqft
2021-06-01 38 days 2,038 sqft
2021-07-01 36 days 2,094 sqft
2021-08-01 40 days 2,007 sqft
2021-09-01 44 days 2,017 sqft
2021-10-01 50 days 2,047 sqft
2021-11-01 53 days 2,046 sqft
2021-12-01 56 days 2,064 sqft
2022-01-01 60 days 2,046 sqft
2022-02-01 30 days 2,081 sqft
2022-03-01 26 days 2,112 sqft
2022-04-01 26 days 2,160 sqft
2022-05-01 19 days 2,132 sqft
2022-06-01 25 days 2,218 sqft
2022-07-01 30 days 2,161 sqft
2022-08-01 37 days 2,161 sqft
2022-09-01 44 days 2,157 sqft
2022-10-01 48 days 2,126 sqft
2022-11-01 50 days 2,156 sqft
2022-12-01 58 days 2,126 sqft
2023-01-01 68 days 2,132 sqft
2023-02-01 63 days 2,114 sqft
2023-03-01 45 days 2,183 sqft
2023-04-01 41 days 2,244 sqft
2023-05-01 32 days 2,225 sqft
2023-06-01 33 days 2,197 sqft
2023-07-01 39 days 2,161 sqft
2023-08-01 39 days 2,087 sqft
2023-09-01 42 days 2,081 sqft
2023-10-01 44 days 2,092 sqft
2023-11-01 49 days 2,041 sqft
2023-12-01 55 days 2,007 sqft
2024-01-01 60 days 1,976 sqft
2024-02-01 49 days 2,022 sqft
2024-03-01 43 days 2,060 sqft
2024-04-01 40 days 2,029 sqft
Savannah's median listing age (time on market) for 2024-04-01 was 40 days. This is -2% shorter than the same period one year ago.

Savannah's median square footage for active listings during the 2024-04-01 period was 2,029 sqft. One year prior, the average listing was 2,244 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).