Springfield FHA Loan Rates, Closing Costs & Stats

SPRINGFIELD, MO

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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 105 lenders originated 1,573 FHA loans during 2024. The total origination value was $348,255,000, with an average FHA loan value of $221,395.

    Springfield FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Springfield averaged 6.47% for the week of 2025-04-11, compared to the national average (all FHA variants) of 6.429% for the same period.

    Springfield's average FHA mortgage closing costs are $6,393.

    The average rate for the prior week (2025-04-04) was 6.4% and one month ago for the week of 2025-03-07, the average rate was 6.36%.

    The average rate one year ago was 6.81%.

    For refis of the same type during the week of 2025-04-11, the average rate was 6.44%.

    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 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    QUICKEN LOANS, LLC 141 6.37% $9,950
    FLAT BRANCH MORTGAGE, INC. 136 6.66% $7,756
    DAS Acquisition Company, LLC 120 6.85% $9,029
    UNITED WHOLESALE MORTGAGE, LLC 81 6.40% $11,143
    GERSHMAN INVESTMENT CORP. 78 6.78% $7,700
    The Central Trust Bank 70 6.47% $7,963
    PENNYMAC LOAN SERVICES, LLC 57 6.05% $9,289
    BROKER SOLUTIONS, INC. 54 6.76% $8,553
    FREEDOM MORTGAGE CORPORATION 40 6.37% $9,630
    Mortgage Research Center, LLC 37 6.71% $5,286
    Arvest Bank 35 6.31% $8,073
    Equity Prime Mortgage LLC 31 7.33% $9,369
    Plains Commerce Bank 28 6.63% $9,344
    Springfield First Community Bank 26 6.33% $7,436
    NEWREZ LLC 26 6.25% $10,108
    Great Southern Bank 25 6.16% $6,553
    BancorpSouth 24 6.36% $6,705
    ASSEMBLIES OF GOD Credit Union 22 6.05% $8,658
    VILLAGE CAPITAL MORTGAGE 21 6.79% $4,632
    CARDINAL FINANCIAL 20 6.40% $10,226
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 16 6.69% $8,061
    LOANDEPOT.COM, LLC 15 6.31% $10,857
    MUTUAL OF OMAHA MORTGAGE, INC. 15 6.34% $14,512
    AMERICAN FINANCIAL RESOURCES, INC. 15 6.68% $9,585
    PRIMELENDING, A PLAINSCAPITAL COMPANY 14 6.55% $8,530
    HOMESIDE FINANCIAL, LLC 13 6.38% $11,629
    GUILD MORTGAGE COMPANY 13 6.77% $6,819
    Carrington Mortgage Services, LLC 11 6.42% $11,273
    Flagstar Bank, FSB 11 6.29% $7,611
    Hawthorn Bank 11 6.07% $6,428
    LOANPAL, LLC 10 5.61% $12,989
    Members Mortgage Services, L.L.C. 9 6.57% $7,078
    PREMIER MORTGAGE RESOURCES, L.L.C. 9 6.53% $7,856
    AMERICAN FINANCIAL NETWORK, INC. 8 6.51% $10,604
    LAKEVIEW LOAN SERVICING, LLC 8 6.48% $6,961
    Mr. Cooper ( Nationstar Mortgage ) 8 6.67% $12,122
    ENDEAVOR CAPITAL, LLC. 8 6.33% $8,455
    Paramount Residential Mortgage Group, Inc. 8 6.95% $9,807
    Commerce Bank 7 6.71% $6,621
    CROSSCOUNTRY MORTGAGE, LLC 7 6.16% $8,029
    AMERICAN FINANCING CORPORATION 6 5.75% $12,523
    PLANET HOME LENDING, LLC 6 5.62% $7,326
    COMMUNITY MORTGAGE, LLC 6 5.96% $8,408
    Ameris Bank 5 6.35% $11,087
    U.S. Bank 5 6.63% $7,349
    Simmons Bank 5 6.60% $5,892
    AmeriHome Mortgage Company, LLC 5 6.70% $4,937
    HOMEBRIDGE FINANCIAL SERVICES, INC. 5 6.73% $8,334
    MID AMERICA MORTGAGE, INC. 4 6.56% $4,165
    AMERISAVE MORTGAGE CORPORATION 4 6.03% $11,691
    EVERETT FINANCIAL, INC. 4 6.94% $10,774
    UMB Bank 3 6.38% $6,784
    Oakstar Bank 3 6.33% $5,506
    CMG MORTGAGE, INC. 3 6.71% $7,438
    Prosperity Home Mortgage, LLC 3 6.00% $8,150
    ZILLOW HOME LOANS, LLC 2 6.44% $10,653
    American Mortgage & Equity Consultants, Inc. 2 6.50% $13,533
    AMERICAN PACIFIC MORTGAGE CORPORATION 2 6.69% $8,269
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 2 6.81% $6,942
    Cornerstone First Mortgage, Inc 2 6.50% $5,887
    DELMAR FINANCIAL COMPANY 2 6.44% $10,002
    FIRST COMMUNITY MORTGAGE, INC. 2 7.13% $8,900
    HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 2 6.37% $10,400
    JLB CORPORATION 2 6.56% $10,663
    JPMorgan Chase Bank 2 6.63% $5,426
    M&T Bank 2 6.50% $6,547
    NFM, INC. 2 6.63% $8,842
    ON Q FINANCIAL, INC. 2 6.37% $6,664
    SUN WEST MORTGAGE COMPANY, INC. 2 5.94% $11,228
    TOP FLITE FINANCIAL, INC. 2 6.75% $9,000
    Academy Bank 2 6.56% $6,465
    UNION HOME MORTGAGE CORP. 1 6.13% $9,777
    GENEVA FINANCIAL, LLC 1 6.63% $6,250
    OCMBC, INC. 1 8.25% $8,562
    Bank of America 1 5.38% $1,859
    ENVOY MORTGAGE, LTD 1 6.63% $12,777
    ENCORE BANK 1 6.25% $5,737
    PHH Mortgage Corporation 1 6.99% $10,915
    DATA MORTGAGE, INC. 1 5.75% $8,689
    City National Bank of Florida 1 6.00% $10,333
    CHURCHILL MORTGAGE CORPORATION 1 7.13% $9,182
    Century Mortgage Company DBA Century Lending Company 1 5.25% $4,418
    CANOPY MORTGAGE, LLC 1 6.13% $7,287
    BLUCURRENT 1 6.25% $7,864
    Regions Bank 1 5.88% $6,932
    RUOFF MORTGAGE COMPANY, INC. 1 6.00% $4,655
    Sierra Pacific Mortgage Company, Inc. 1 6.25% $9,017
    BETTER MORTGAGE CORPORATION 1 6.63% $9,280
    SIRVA MORTGAGE, INC. 1 7.00% $6,300
    Bell Bank 1 6.13% $8,726
    Stride Bank 1 5.63% $12,650
    AXIA FINANCIAL, LLC 1 7.25% $8,483
    T2 FINANCIAL LLC 1 7.25% $5,398
    Texana Bank 1 6.00% $19,275
    Barrington Bank & Trust Company, N.A. 1 6.25% $6,167
    The Federal Savings Bank 1 6.13% $10,923
    Armed Forces Bank 1 6.75% $5,985
    TOWNE MORTGAGE COMPANY 1 7.25% $10,272
    TruHome Solutions, LLC 1 5.38% $10,190
    MORTGAGE SOLUTIONS OF COLORADO, LLC 1 6.25% $12,273
    Midwest Mortgage Associates Corporation 1 6.25% $4,118
    Bank of England 1 7.25% $7,336
    Magnolia Bank 1 6.25% $12,667
    NBKC BANK 1 6.75% $7,885
    Ixonia Bank 1 6.25% $8,007

    The top Springfield FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 141 FHA loans originated. Their average total fees are $9,950, which is $2,194 higher than the next largest lender, FLAT BRANCH MORTGAGE, INC..

    The lowest fee Springfield FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL MORTGAGE ($4,632), Mortgage Research Center, LLC ($5,286), Hawthorn Bank ($6,428), Great Southern Bank ($6,553) and BancorpSouth ($6,705).

    The lowest rate Springfield FHA lenders (with over 10 loans originated) are LOANPAL, LLC (5.61%), ASSEMBLIES OF GOD Credit Union (6.05%), PENNYMAC LOAN SERVICES, LLC (6.05%), Hawthorn Bank (6.07%) and Great Southern Bank (6.16%).

    Springfield FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    SPRINGFIELD, MO CHRISTIAN 2022 $420,680 $538,650 $651,050 $809,150
    SPRINGFIELD, MO DALLAS 2022 $420,680 $538,650 $651,050 $809,150
    SPRINGFIELD, MO GREENE 2022 $420,680 $538,650 $651,050 $809,150
    SPRINGFIELD, MO POLK 2022 $420,680 $538,650 $651,050 $809,150
    SPRINGFIELD, MO WEBSTER 2022 $420,680 $538,650 $651,050 $809,150
    SPRINGFIELD, MO CHRISTIAN 2023 $472,030 $604,400 $730,525 $907,900
    SPRINGFIELD, MO DALLAS 2023 $472,030 $604,400 $730,525 $907,900
    SPRINGFIELD, MO GREENE 2023 $472,030 $604,400 $730,525 $907,900
    SPRINGFIELD, MO POLK 2023 $472,030 $604,400 $730,525 $907,900
    SPRINGFIELD, MO WEBSTER 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 $176,900 (14.0%) $239,476 (13.2%) 0.66 1,628
    2018-02-01 $183,925 (15.0%) $240,957 (12.3%) 0.67 1,570
    2018-03-01 $189,900 (11.8%) $244,326 (8.0%) 0.67 1,527
    2018-04-01 $199,925 (11.1%) $255,802 (6.2%) 0.68 1,510
    2018-05-01 $207,950 (15.6%) $263,607 (8.4%) 0.69 1,517
    2018-06-01 $217,000 (19.7%) $269,986 (10.1%) 0.72 1,663
    2018-07-01 $205,000 (14.0%) $266,342 (9.4%) 0.68 1,775
    2018-08-01 $189,900 (4.8%) $250,567 (2.4%) 0.64 1,944
    2018-09-01 $189,500 (5.3%) $246,948 (2.6%) 0.64 1,956
    2018-10-01 $186,950 (3.9%) $243,010 (0.9%) 0.63 1,955
    2018-11-01 $183,250 (2.1%) $241,238 (0.6%) 0.62 1,928
    2018-12-01 $182,900 (3.4%) $238,283 (-0.7%) 0.63 1,815
    2019-01-01 $189,900 (7.4%) $241,336 (0.8%) 0.66 1,629
    2019-02-01 $192,175 (4.5%) $242,498 (0.6%) 0.65 1,569
    2019-03-01 $205,714 (8.3%) $252,253 (3.2%) 0.67 1,472
    2019-04-01 $222,500 (11.3%) $265,941 (4.0%) 0.71 1,377
    2019-05-01 $237,400 (14.2%) $277,850 (5.4%) 0.74 1,364
    2019-06-01 $231,450 (6.7%) $280,621 (3.9%) 0.72 1,522
    2019-07-01 $227,400 (10.9%) $275,991 (3.6%) 0.71 1,565
    2019-08-01 $223,536 (17.7%) $270,230 (7.9%) 0.71 1,647
    2019-09-01 $221,491 (16.9%) $268,176 (8.6%) 0.71 1,662
    2019-10-01 $220,152 (17.8%) $266,502 (9.7%) 0.71 1,683
    2019-11-01 $217,500 (18.7%) $261,791 (8.5%) 0.71 1,700
    2019-12-01 $214,900 (17.5%) $261,209 (9.6%) 0.72 1,577
    2020-01-01 $217,450 (14.5%) $265,065 (9.8%) 0.73 1,455
    2020-02-01 $219,900 (14.4%) $273,009 (12.6%) 0.72 1,343
    2020-03-01 $228,750 (11.2%) $287,344 (13.9%) 0.72 1,290
    2020-04-01 $229,900 (3.3%) $283,465 (6.6%) 0.72 1,350
    2020-05-01 $243,900 (2.7%) $300,018 (8.0%) 0.74 1,202
    2020-06-01 $256,023 (10.6%) $316,962 (13.0%) 0.75 1,068
    2020-07-01 $248,550 (9.3%) $317,831 (15.2%) 0.72 1,031
    2020-08-01 $249,900 (11.8%) $319,539 (18.3%) 0.72 986
    2020-09-01 $249,950 (12.9%) $317,385 (18.4%) 0.72 989
    2020-10-01 $237,900 (8.1%) $311,976 (17.1%) 0.68 1,017
    2020-11-01 $242,450 (11.5%) $312,002 (19.2%) 0.71 916
    2020-12-01 $242,625 (12.9%) $314,952 (20.6%) 0.72 814
    2021-01-01 $250,000 (15.0%) $331,455 (25.1%) 0.75 689
    2021-02-01 $263,975 (20.0%) $365,284 (33.8%) 0.77 509
    2021-03-01 $284,400 (24.3%) $386,983 (34.7%) 0.81 410
    2021-04-01 $272,500 (18.5%) $387,313 (36.6%) 0.74 397
    2021-05-01 $269,225 (10.4%) $396,489 (32.2%) 0.72 459
    2021-06-01 $272,050 (6.3%) $394,780 (24.6%) 0.72 505
    2021-07-01 $277,450 (11.6%) $383,617 (20.7%) 0.73 599
    2021-08-01 $270,200 (8.1%) $364,639 (14.1%) 0.72 661
    2021-09-01 $272,425 (9.0%) $362,113 (14.1%) 0.73 675
    2021-10-01 $279,950 (17.7%) $378,716 (21.4%) 0.75 660
    2021-11-01 $299,900 (23.7%) $402,516 (29.0%) 0.80 575
    2021-12-01 $297,225 (22.5%) $387,938 (23.2%) 0.81 521
    2022-01-01 $314,500 (25.8%) $427,302 (28.9%) 0.85 448
    2022-02-01 $327,425 (24.0%) $437,726 (19.8%) 0.85 378
    2022-03-01 $326,125 (14.7%) $434,662 (12.3%) 0.82 382
    2022-04-01 $319,950 (17.4%) $416,888 (7.6%) 0.76 430
    2022-05-01 $345,613 (28.4%) $429,755 (8.4%) 0.79 552
    2022-06-01 $349,800 (28.6%) $432,315 (9.5%) 0.78 688
    2022-07-01 $345,000 (24.4%) $425,202 (10.8%) 0.78 913
    2022-08-01 $339,225 (25.6%) $415,812 (14.0%) 0.78 893
    2022-09-01 $338,788 (24.4%) $412,872 (14.0%) 0.79 887
    2022-10-01 $320,375 (14.4%) $413,797 (9.3%) 0.75 970
    2022-11-01 $319,900 (6.7%) $413,205 (2.7%) 0.77 1,020
    2022-12-01 $316,000 (6.3%) $402,541 (3.8%) 0.78 1,023
    2023-01-01 $312,500 (-0.6%) $394,806 (-7.6%) 0.77 889
    2023-02-01 $324,950 (-0.8%) $412,137 (-5.9%) 0.78 789
    2023-03-01 $342,500 (5.0%) $444,503 (2.3%) 0.81 712
    2023-04-01 $349,900 (9.4%) $454,172 (8.9%) 0.81 685
    2023-05-01 $357,475 (3.4%) $454,084 (5.7%) 0.81 713
    2023-06-01 $363,475 (3.9%) $446,082 (3.2%) 0.82 768
    2023-07-01 $349,900 (1.4%) $437,372 (2.9%) 0.80 858
    2023-08-01 $350,000 (3.2%) $436,889 (5.1%) 0.80 934
    2023-09-01 $349,000 (3.0%) $417,962 (1.2%) 0.81 1,034
    2023-10-01 $331,200 (3.4%) $402,541 (-2.7%) 0.78 1,118
    2023-11-01 $314,999 (-1.5%) $395,026 (-4.4%) 0.75 1,181
    2023-12-01 $319,200 (1.0%) $398,587 (-1.0%) 0.78 1,136
    2024-01-01 $330,000 (5.6%) $407,898 (3.3%) 0.81 1,009
    2024-02-01 $337,450 (3.9%) $408,241 (-1.0%) 0.81 942
    2024-03-01 $339,948 (-0.8%) $417,825 (-6.0%) 0.80 975
    2024-04-01 $340,000 (-2.8%) $423,216 (-6.8%) 0.79 1,065
    2024-05-01 $339,986 (-4.9%) $423,485 (-6.7%) 0.77 1,134
    2024-06-01 $345,000 (-5.1%) $428,437 (-4.0%) 0.78 1,273
    2024-07-01 $340,000 (-2.8%) $424,760 (-2.9%) 0.78 1,367
    2024-08-01 $340,000 (-2.9%) $427,648 (-2.1%) 0.79 1,421
    2024-09-01 $339,125 (-2.8%) $429,673 (2.8%) 0.80 1,614
    2024-10-01 $333,000 (0.5%) $423,235 (5.1%) 0.78 1,657
    2024-11-01 $319,995 (1.6%) $421,211 (6.6%) 0.77 1,793
    2024-12-01 $315,000 (-1.3%) $414,901 (4.1%) 0.78 1,587
    2025-01-01 $319,900 (-3.1%) $415,416 (1.8%) 0.80 1,503
    2025-02-01 $322,450 (-4.5%) $409,123 (0.2%) 0.78 1,523
    2025-03-01 $329,538 (-3.1%) $418,781 (0.2%) 0.00 1,519
    Springfield's median listing price for 2025-03-01 was $329,538, a difference of $-10,410 (-3.1%) versus the prior year and $7,088 versus the prior month.

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

    Springfield's average listing price for 2025-03-01 was $418,781, a difference of $956 (0.2%) versus the prior year and $9,658 versus the prior month.

    For the 2025-03-01 period, Springfield had 1,519 MLS listings, a difference of -4 listings (0%) versus the prior month and 544 listings (56%) 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 80 days 1,923 sqft
    2018-02-01 74 days 1,934 sqft
    2018-03-01 53 days 1,971 sqft
    2018-04-01 50 days 2,028 sqft
    2018-05-01 45 days 2,117 sqft
    2018-06-01 44 days 2,173 sqft
    2018-07-01 45 days 2,123 sqft
    2018-08-01 44 days 1,975 sqft
    2018-09-01 46 days 1,930 sqft
    2018-10-01 52 days 1,912 sqft
    2018-11-01 58 days 1,880 sqft
    2018-12-01 64 days 1,870 sqft
    2019-01-01 72 days 1,888 sqft
    2019-02-01 63 days 1,891 sqft
    2019-03-01 55 days 1,965 sqft
    2019-04-01 51 days 2,082 sqft
    2019-05-01 46 days 2,137 sqft
    2019-06-01 43 days 2,158 sqft
    2019-07-01 47 days 2,095 sqft
    2019-08-01 48 days 2,030 sqft
    2019-09-01 51 days 1,989 sqft
    2019-10-01 52 days 1,963 sqft
    2019-11-01 51 days 1,900 sqft
    2019-12-01 65 days 1,860 sqft
    2020-01-01 79 days 1,860 sqft
    2020-02-01 80 days 1,852 sqft
    2020-03-01 61 days 1,954 sqft
    2020-04-01 48 days 1,935 sqft
    2020-05-01 57 days 2,000 sqft
    2020-06-01 62 days 2,134 sqft
    2020-07-01 44 days 2,123 sqft
    2020-08-01 37 days 2,064 sqft
    2020-09-01 39 days 2,032 sqft
    2020-10-01 36 days 1,958 sqft
    2020-11-01 43 days 1,968 sqft
    2020-12-01 55 days 1,939 sqft
    2021-01-01 57 days 2,000 sqft
    2021-02-01 46 days 2,034 sqft
    2021-03-01 38 days 2,121 sqft
    2021-04-01 22 days 2,069 sqft
    2021-05-01 20 days 2,073 sqft
    2021-06-01 23 days 2,008 sqft
    2021-07-01 23 days 2,016 sqft
    2021-08-01 28 days 1,971 sqft
    2021-09-01 32 days 1,923 sqft
    2021-10-01 32 days 1,933 sqft
    2021-11-01 39 days 1,951 sqft
    2021-12-01 43 days 1,927 sqft
    2022-01-01 49 days 1,946 sqft
    2022-02-01 34 days 1,973 sqft
    2022-03-01 24 days 2,003 sqft
    2022-04-01 20 days 1,955 sqft
    2022-05-01 22 days 2,000 sqft
    2022-06-01 23 days 2,000 sqft
    2022-07-01 29 days 1,994 sqft
    2022-08-01 40 days 2,019 sqft
    2022-09-01 41 days 1,948 sqft
    2022-10-01 38 days 1,920 sqft
    2022-11-01 44 days 1,905 sqft
    2022-12-01 54 days 1,900 sqft
    2023-01-01 62 days 1,924 sqft
    2023-02-01 55 days 1,927 sqft
    2023-03-01 48 days 1,990 sqft
    2023-04-01 40 days 2,000 sqft
    2023-05-01 32 days 2,064 sqft
    2023-06-01 37 days 2,077 sqft
    2023-07-01 32 days 2,017 sqft
    2023-08-01 32 days 2,057 sqft
    2023-09-01 37 days 2,004 sqft
    2023-10-01 38 days 1,955 sqft
    2023-11-01 42 days 1,860 sqft
    2023-12-01 50 days 1,886 sqft
    2024-01-01 60 days 1,910 sqft
    2024-02-01 55 days 1,871 sqft
    2024-03-01 38 days 1,925 sqft
    2024-04-01 36 days 1,927 sqft
    2024-05-01 37 days 1,870 sqft
    2024-06-01 39 days 1,956 sqft
    2024-07-01 44 days 1,930 sqft
    2024-08-01 46 days 1,933 sqft
    2024-09-01 46 days 1,885 sqft
    2024-10-01 53 days 1,872 sqft
    2024-11-01 60 days 1,801 sqft
    2024-12-01 64 days 1,750 sqft
    2025-01-01 66 days 1,743 sqft
    2025-02-01 62 days 1,744 sqft
    2025-03-01 0 days 1,794 sqft
    Springfield's median listing age (time on market) for 2025-03-01 was 0 days. This is -100% shorter than the same period one year ago.

    Springfield's median square footage for active listings during the 2025-03-01 period was 1,794 sqft. One year prior, the average listing was 1,925 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).