Springfield FHA Loan Rates, Closing Costs & Stats

SPRINGFIELD, MA

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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.

    Springfield's 110 lenders originated 1,395 FHA loans during 2023. The total origination value was $384,535,000, with an average FHA loan value of $275,652.

    Springfield FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Springfield averaged 6.25% for the week of 2025-02-14, compared to the national average (all FHA variants) of 6.515% for the same period.

    Springfield's average FHA mortgage closing costs are $8,341.

    The average rate for the prior week (2025-02-07) was 6.46% and one month ago for the week of 2025-01-10, the average rate was 6.33%.

    The average rate one year ago was 6.35%.

    For refis of the same type during the week of 2025-02-14, the average rate was 6.98%.

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

    Springfield 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 Springfield level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    QUICKEN LOANS, LLC 128 6.09% $12,053
    UNITED WHOLESALE MORTGAGE, LLC 124 6.54% $13,136
    MOVEMENT MORTGAGE, LLC 117 6.88% $12,808
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 84 6.89% $12,970
    ACADEMY MORTGAGE CORPORATION 47 6.84% $11,261
    NORWICH COMMERCIAL GROUP, INC. 47 6.40% $11,687
    CROSSCOUNTRY MORTGAGE, LLC 43 6.86% $11,375
    Paramount Residential Mortgage Group, Inc. 41 6.54% $11,816
    NORTHPOINT MORTGAGE, INC. 36 6.70% $12,147
    LEADERONE FINANCIAL CORPORATION 35 6.50% $13,213
    Semper Home Loans, Inc. 34 7.07% $13,844
    TOTAL MORTGAGE SERVICES, LLC 29 6.84% $13,080
    FREEDOM MORTGAGE CORPORATION 24 6.70% $14,016
    GUARANTEED RATE, INC. 23 6.61% $12,416
    PENNYMAC LOAN SERVICES, LLC 23 6.19% $14,119
    LOANDEPOT.COM, LLC 22 6.39% $13,426
    NEWREZ LLC 21 6.49% $11,637
    HARBORONE MORTGAGE, LLC 19 6.52% $12,121
    Citizens Bank 19 6.35% $10,365
    RADIUS FINANCIAL GROUP INC. 18 6.71% $12,092
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 18 6.35% $14,106
    GUILD MORTGAGE COMPANY 18 6.69% $12,837
    HOMESPIRE MORTGAGE CORPORATION 17 6.42% $11,155
    Keystone Funding, Inc. 15 6.42% $15,657
    Evolve Bank & Trust 15 6.63% $9,594
    GENEVA FINANCIAL, LLC 13 7.10% $15,697
    Mr. Cooper ( Nationstar Mortgage ) 13 6.07% $14,672
    AMERISAVE MORTGAGE CORPORATION 12 6.05% $16,047
    HOMESTEAD FUNDING CORP. 11 6.70% $8,705
    GUARANTEED RATE AFFINITY, LLC 11 6.69% $13,325
    MUTUAL OF OMAHA MORTGAGE, INC. 9 6.44% $16,483
    CARDINAL FINANCIAL 8 5.91% $10,167
    MORTGAGE EQUITY PARTNERS LLC 8 6.78% $15,738
    Equity Prime Mortgage LLC 8 7.20% $14,372
    HOMEBRIDGE FINANCIAL SERVICES, INC. 8 6.14% $10,956
    PLAZA HOME MORTGAGE, INC. 8 6.83% $14,871
    CMG MORTGAGE, INC. 7 6.82% $12,219
    CIBM Bank 7 6.82% $11,125
    NORTHERN MORTGAGE SERVICES, LLC 7 6.61% $8,980
    MEMBER ADVANTAGE MORTGAGE, LLC 6 6.46% $12,655
    Bank of England 6 7.00% $9,747
    M&T Bank 6 6.81% $9,655
    SALEM FIVE MORTGAGE COMPANY, LLC 6 6.73% $10,354
    Nations Lending Corporation 5 6.85% $10,949
    BROKER SOLUTIONS, INC. 5 6.17% $14,508
    Mortgage Research Center, LLC 5 6.67% $7,042
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 5 6.68% $13,785
    EMM LOANS LLC 5 6.03% $15,118
    EVERETT FINANCIAL, INC. 5 6.93% $10,840
    FIRST WORLD MORTGAGE CORPORATION 4 6.16% $15,821
    NEW FED MORTGAGE, CORP. 4 6.75% $13,638
    NBKC BANK 4 6.09% $7,743
    The Federal Savings Bank 4 6.44% $15,986
    LAKEVIEW LOAN SERVICING, LLC 4 6.19% $13,042
    T2 FINANCIAL LLC 4 6.38% $15,631
    RELIANCE FIRST CAPITAL, LLC 4 7.38% $9,743
    OCMBC, INC. 4 6.75% $11,708
    Sierra Pacific Mortgage Company, Inc. 3 7.67% $12,060
    Plains Commerce Bank 3 6.50% $11,100
    Flagstar Bank, FSB 3 5.96% $16,293
    ZILLOW HOME LOANS, LLC 3 6.71% $10,231
    FIRST MORTGAGE COMPANY, INC. 3 6.71% $14,422
    AMERICAN FINANCIAL NETWORK, INC. 2 6.38% $12,262
    JMAC LENDING, INC. 2 6.25% $14,347
    KeyBank 2 6.31% $8,665
    Easthampton Savings Bank 2 6.44% $8,836
    Berkshire Bank 2 6.88% $9,303
    BAY EQUITY LLC 2 6.75% $9,971
    PLANET HOME LENDING, LLC 2 6.69% $10,553
    Barrington Bank & Trust Company, N.A. 2 6.50% $9,145
    Republic State Mortgage Co. 2 6.69% $15,173
    TOP FLITE FINANCIAL, INC. 2 6.75% $13,417
    UMASSFIVE COLLEGE Federal Credit Union 2 6.00% $13,578
    Wells Fargo Bank 2 6.63% $9,525
    Eastern Bank 1 7.13% $10,459
    Northpointe Bank 1 7.13% $11,203
    BETTER MORTGAGE CORPORATION 1 5.63% $9,236
    First Federal Bank 1 6.00% $11,878
    EMBRACE HOME LOANS, INC. 1 7.38% $7,952
    UNITED NORTHERN MORTGAGE BANKERS LIMITED 1 6.00% $17,723
    BAYCOAST MORTGAGE COMPANY, LLC 1 6.00% $8,260
    PHH Mortgage Corporation 1 5.88% $12,388
    MILEND, INC. 1 6.13% $9,221
    ALLIED MORTGAGE GROUP, INC. 1 8.11% $3,499
    Victorian Finance, LLC 1 6.25% $14,007
    PLUS RELOCATION MORTGAGE, LLC 1 6.75% $15,909
    PNC Bank 1 6.63% $11,510
    PRIMELENDING, A PLAINSCAPITAL COMPANY 1 6.75% $14,246
    Prosperity Home Mortgage, LLC 1 5.99% $12,745
    Bank of America 1 7.63% $8,239
    MID-ISLAND MORTGAGE CORP. 1 6.62% $6,661
    MID AMERICA MORTGAGE, INC. 1 7.63% $6,262
    Waterstone Mortgage Corporation 1 7.13% $13,402
    Residential Mortgage Solutions, Inc. 1 6.63% $14,626
    LIBERTY HOME MORTGAGE CORPORATION 1 7.00% $20,360
    AMERICAN FINANCING CORPORATION 1 6.75% $6,910
    Fall River Five Cents Savings Bank 1 6.50% $7,240
    LAND HOME FINANCIAL SERVICES, INC. 1 7.50% $14,306
    The Camden National Bank 1 6.25% $10,334
    LADERA LENDING, INC. 1 7.13% $9,965
    FIRST HOME MORTGAGE CORPORATION 1 6.25% $16,451
    FIRST COMMUNITY MORTGAGE, INC. 1 7.75% $11,020
    NATIONS DIRECT MORTGAGE, LLC 1 7.75% $14,384
    NATIONS RELIABLE LENDING, LLC 1 6.63% $13,046
    DRAPER AND KRAMER MORTGAGE CORP. 1 6.63% $10,301
    Network Funding, L.P. 1 6.50% $12,436
    WILLIAM RAVEIS MORTGAGE, LLC 1 6.13% $13,467
    CONTOUR MORTGAGE CORPORATION 1 6.63% $10,504
    NFM, INC. 1 6.75% $12,071
    NJ LENDERS CORP. 1 5.75% $10,084

    The top Springfield FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 128 FHA loans originated. Their average total fees are $12,053, which is $1,083 lower than the next largest lender, UNITED WHOLESALE MORTGAGE, LLC.

    The lowest fee Springfield FHA lenders (with over 10 loans originated) are HOMESTEAD FUNDING CORP. ($8,705), Evolve Bank & Trust ($9,594), Citizens Bank ($10,365), HOMESPIRE MORTGAGE CORPORATION ($11,155) and ACADEMY MORTGAGE CORPORATION ($11,261).

    The lowest rate Springfield FHA lenders (with over 10 loans originated) are AMERISAVE MORTGAGE CORPORATION (6.05%), Mr. Cooper ( Nationstar Mortgage ) (6.07%), QUICKEN LOANS, LLC (6.09%), PENNYMAC LOAN SERVICES, LLC (6.19%) and Citizens Bank (6.35%).

    Springfield FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    SPRINGFIELD, MA FRANKLIN 2022 $420,680 $538,650 $651,050 $809,150
    SPRINGFIELD, MA HAMPDEN 2022 $420,680 $538,650 $651,050 $809,150
    SPRINGFIELD, MA HAMPSHIRE 2022 $420,680 $538,650 $651,050 $809,150
    SPRINGFIELD, MA FRANKLIN 2023 $472,030 $604,400 $730,525 $907,900
    SPRINGFIELD, MA HAMPDEN 2023 $472,030 $604,400 $730,525 $907,900
    SPRINGFIELD, MA HAMPSHIRE 2023 $472,030 $604,400 $730,525 $907,900

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Springfield (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 $219,900 (15.8%) $269,640 (12.6%) 0.91 834
    2018-02-01 $222,494 (14.4%) $271,836 (10.0%) 0.91 804
    2018-03-01 $239,900 (14.1%) $280,963 (8.8%) 0.93 813
    2018-04-01 $248,450 (12.4%) $293,341 (10.0%) 0.94 860
    2018-05-01 $249,950 (8.9%) $294,335 (6.7%) 0.93 998
    2018-06-01 $249,900 (5.2%) $296,475 (6.6%) 0.93 1,069
    2018-07-01 $249,900 (4.6%) $298,909 (6.7%) 0.93 1,148
    2018-08-01 $239,900 (2.1%) $292,279 (4.6%) 0.90 1,190
    2018-09-01 $239,000 (2.2%) $288,269 (4.2%) 0.87 1,229
    2018-10-01 $237,075 (3.3%) $285,583 (3.7%) 0.88 1,231
    2018-11-01 $232,400 (3.3%) $281,525 (2.3%) 0.88 1,132
    2018-12-01 $224,900 (2.3%) $272,879 (-0.1%) 0.86 1,016
    2019-01-01 $225,850 (2.7%) $269,264 (-0.1%) 0.86 880
    2019-02-01 $225,561 (1.4%) $272,008 (0.1%) 0.83 837
    2019-03-01 $235,614 (-1.8%) $282,346 (0.5%) 0.84 814
    2019-04-01 $249,900 (0.6%) $297,955 (1.6%) 0.88 796
    2019-05-01 $254,900 (2.0%) $309,415 (5.1%) 0.90 839
    2019-06-01 $259,900 (4.0%) $312,213 (5.3%) 0.93 900
    2019-07-01 $259,075 (3.7%) $308,830 (3.3%) 0.92 931
    2019-08-01 $253,609 (5.7%) $304,096 (4.0%) 0.91 963
    2019-09-01 $251,523 (5.2%) $299,571 (3.9%) 0.90 1,000
    2019-10-01 $249,900 (5.4%) $294,661 (3.2%) 0.89 1,019
    2019-11-01 $242,500 (4.4%) $291,941 (3.7%) 0.88 907
    2019-12-01 $235,925 (4.9%) $289,675 (6.2%) 0.91 761
    2020-01-01 $242,400 (7.3%) $297,487 (10.5%) 0.91 680
    2020-02-01 $249,900 (10.8%) $305,632 (12.4%) 0.89 651
    2020-03-01 $279,947 (18.8%) $331,316 (17.3%) 0.94 638
    2020-04-01 $279,900 (12.0%) $328,207 (10.2%) 0.94 630
    2020-05-01 $289,000 (13.4%) $339,209 (9.6%) 0.99 581
    2020-06-01 $299,950 (15.4%) $352,067 (12.8%) 1.00 545
    2020-07-01 $299,900 (15.8%) $353,411 (14.4%) 1.00 495
    2020-08-01 $315,000 (24.2%) $364,117 (19.7%) 1.00 480
    2020-09-01 $299,900 (19.2%) $368,968 (23.2%) 0.99 485
    2020-10-01 $299,000 (19.7%) $362,699 (23.1%) 0.93 530
    2020-11-01 $269,603 (11.2%) $342,126 (17.2%) 0.90 477
    2020-12-01 $254,950 (8.1%) $333,376 (15.1%) 0.86 430
    2021-01-01 $250,000 (3.1%) $344,136 (15.7%) 0.89 339
    2021-02-01 $276,700 (10.7%) $352,048 (15.2%) 0.95 280
    2021-03-01 $298,450 (6.6%) $373,032 (12.6%) 0.98 262
    2021-04-01 $312,475 (11.6%) $385,827 (17.6%) 0.98 269
    2021-05-01 $299,900 (3.8%) $374,684 (10.5%) 0.93 315
    2021-06-01 $299,675 (-0.1%) $385,361 (9.5%) 0.89 351
    2021-07-01 $295,000 (-1.6%) $382,269 (8.2%) 0.91 393
    2021-08-01 $299,350 (-5.0%) $375,638 (3.2%) 0.91 454
    2021-09-01 $284,500 (-5.1%) $365,342 (-1.0%) 0.83 439
    2021-10-01 $274,675 (-8.1%) $351,310 (-3.1%) 0.80 413
    2021-11-01 $270,400 (0.3%) $359,013 (4.9%) 0.81 367
    2021-12-01 $267,450 (4.9%) $356,919 (7.1%) 0.82 316
    2022-01-01 $275,000 (10.0%) $350,962 (2.0%) 0.88 248
    2022-02-01 $282,497 (2.1%) $352,937 (0.3%) 0.82 233
    2022-03-01 $287,175 (-3.8%) $358,158 (-4.0%) 0.82 221
    2022-04-01 $314,458 (0.6%) $379,656 (-1.6%) 0.85 240
    2022-05-01 $307,475 (2.5%) $372,941 (-0.5%) 0.81 323
    2022-06-01 $322,500 (7.6%) $385,188 (-0.1%) 0.78 409
    2022-07-01 $299,900 (1.7%) $367,596 (-3.8%) 0.79 484
    2022-08-01 $299,900 (0.2%) $364,967 (-2.8%) 0.80 479
    2022-09-01 $314,975 (10.7%) $373,374 (2.2%) 0.82 466
    2022-10-01 $314,900 (14.6%) $371,401 (5.7%) 0.82 446
    2022-11-01 $314,175 (16.2%) $369,983 (3.1%) 0.83 415
    2022-12-01 $299,987 (12.2%) $361,857 (1.4%) 0.84 363
    2023-01-01 $294,900 (7.2%) $349,483 (-0.4%) 0.81 332
    2023-02-01 $297,450 (5.3%) $343,503 (-2.7%) 0.78 307
    2023-03-01 $311,050 (8.3%) $361,482 (0.9%) 0.82 268
    2023-04-01 $325,000 (3.4%) $380,579 (0.2%) 0.86 276
    2023-05-01 $344,175 (11.9%) $389,652 (4.5%) 0.87 291
    2023-06-01 $345,400 (7.1%) $417,028 (8.3%) 0.87 290
    2023-07-01 $349,900 (16.7%) $415,426 (13.0%) 0.86 319
    2023-08-01 $339,950 (13.4%) $408,020 (11.8%) 0.86 341
    2023-09-01 $332,450 (5.6%) $405,884 (8.7%) 0.88 353
    2023-10-01 $327,450 (4.0%) $395,177 (6.4%) 0.87 405
    2023-11-01 $325,000 (3.5%) $383,578 (3.7%) 0.83 392
    2023-12-01 $316,950 (5.7%) $380,885 (5.3%) 0.85 340
    2024-01-01 $320,925 (8.8%) $383,699 (9.8%) 0.85 278
    2024-02-01 $307,494 (3.4%) $383,438 (11.6%) 0.84 246
    2024-03-01 $324,900 (4.5%) $401,846 (11.2%) 0.82 249
    2024-04-01 $333,000 (2.5%) $407,910 (7.2%) 0.91 260
    2024-05-01 $349,950 (1.7%) $425,943 (9.3%) 0.90 320
    2024-06-01 $335,000 (-3.0%) $416,143 (-0.2%) 0.90 364
    2024-07-01 $338,225 (-3.3%) $419,018 (0.9%) 0.90 357
    2024-08-01 $350,000 (3.0%) $434,595 (6.5%) 0.93 383
    2024-09-01 $344,950 (3.8%) $421,269 (3.8%) 0.93 460
    2024-10-01 $341,950 (4.4%) $410,651 (3.9%) 0.91 508
    2024-11-01 $329,900 (1.5%) $393,262 (2.5%) 0.88 498
    2024-12-01 $330,000 (4.1%) $397,518 (4.4%) 0.91 417
    2025-01-01 $328,161 (2.3%) $385,830 (0.6%) 0.00 376
    Springfield's median listing price for 2025-01-01 was $328,161, a difference of $7,236 (2.3%) versus the prior year and $-1,839 versus the prior month.

    Springfield's median listing price comes in at 0% of the national average.

    Springfield's average listing price for 2025-01-01 was $385,830, a difference of $2,131 (0.6%) versus the prior year and $-11,688 versus the prior month.

    For the 2025-01-01 period, Springfield had 376 MLS listings, a difference of -41 listings (-10%) versus the prior month and 98 listings (35%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Springfield (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 87 days 1,589 sqft
    2018-02-01 84 days 1,612 sqft
    2018-03-01 58 days 1,656 sqft
    2018-04-01 46 days 1,725 sqft
    2018-05-01 39 days 1,728 sqft
    2018-06-01 39 days 1,737 sqft
    2018-07-01 47 days 1,751 sqft
    2018-08-01 53 days 1,710 sqft
    2018-09-01 60 days 1,680 sqft
    2018-10-01 61 days 1,665 sqft
    2018-11-01 65 days 1,680 sqft
    2018-12-01 72 days 1,659 sqft
    2019-01-01 80 days 1,633 sqft
    2019-02-01 75 days 1,639 sqft
    2019-03-01 61 days 1,684 sqft
    2019-04-01 44 days 1,755 sqft
    2019-05-01 39 days 1,767 sqft
    2019-06-01 40 days 1,762 sqft
    2019-07-01 47 days 1,741 sqft
    2019-08-01 53 days 1,726 sqft
    2019-09-01 56 days 1,709 sqft
    2019-10-01 56 days 1,696 sqft
    2019-11-01 61 days 1,683 sqft
    2019-12-01 73 days 1,626 sqft
    2020-01-01 78 days 1,642 sqft
    2020-02-01 66 days 1,674 sqft
    2020-03-01 49 days 1,755 sqft
    2020-04-01 56 days 1,737 sqft
    2020-05-01 64 days 1,764 sqft
    2020-06-01 49 days 1,801 sqft
    2020-07-01 46 days 1,783 sqft
    2020-08-01 43 days 1,801 sqft
    2020-09-01 38 days 1,793 sqft
    2020-10-01 36 days 1,737 sqft
    2020-11-01 46 days 1,650 sqft
    2020-12-01 55 days 1,622 sqft
    2021-01-01 58 days 1,600 sqft
    2021-02-01 52 days 1,673 sqft
    2021-03-01 33 days 1,673 sqft
    2021-04-01 19 days 1,730 sqft
    2021-05-01 18 days 1,688 sqft
    2021-06-01 18 days 1,685 sqft
    2021-07-01 26 days 1,641 sqft
    2021-08-01 25 days 1,648 sqft
    2021-09-01 29 days 1,610 sqft
    2021-10-01 30 days 1,569 sqft
    2021-11-01 31 days 1,562 sqft
    2021-12-01 42 days 1,569 sqft
    2022-01-01 46 days 1,541 sqft
    2022-02-01 23 days 1,579 sqft
    2022-03-01 21 days 1,607 sqft
    2022-04-01 17 days 1,704 sqft
    2022-05-01 16 days 1,694 sqft
    2022-06-01 18 days 1,731 sqft
    2022-07-01 25 days 1,656 sqft
    2022-08-01 33 days 1,633 sqft
    2022-09-01 35 days 1,628 sqft
    2022-10-01 38 days 1,638 sqft
    2022-11-01 39 days 1,637 sqft
    2022-12-01 47 days 1,619 sqft
    2023-01-01 54 days 1,564 sqft
    2023-02-01 38 days 1,534 sqft
    2023-03-01 35 days 1,613 sqft
    2023-04-01 20 days 1,622 sqft
    2023-05-01 19 days 1,615 sqft
    2023-06-01 19 days 1,680 sqft
    2023-07-01 23 days 1,720 sqft
    2023-08-01 25 days 1,673 sqft
    2023-09-01 30 days 1,670 sqft
    2023-10-01 30 days 1,662 sqft
    2023-11-01 34 days 1,589 sqft
    2023-12-01 45 days 1,564 sqft
    2024-01-01 47 days 1,540 sqft
    2024-02-01 38 days 1,535 sqft
    2024-03-01 27 days 1,580 sqft
    2024-04-01 20 days 1,598 sqft
    2024-05-01 17 days 1,648 sqft
    2024-06-01 24 days 1,564 sqft
    2024-07-01 30 days 1,567 sqft
    2024-08-01 31 days 1,575 sqft
    2024-09-01 28 days 1,565 sqft
    2024-10-01 30 days 1,588 sqft
    2024-11-01 37 days 1,569 sqft
    2024-12-01 51 days 1,563 sqft
    2025-01-01 0 days 1,537 sqft
    Springfield's median listing age (time on market) for 2025-01-01 was 0 days. This is -100% shorter than the same period one year ago.

    Springfield's median square footage for active listings during the 2025-01-01 period was 1,537 sqft. One year prior, the average listing was 1,540 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).