Stockton FHA Loan Rates, Closing Costs & Stats

STOCKTON, CA

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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.

    Stockton's 142 lenders originated 2,285 FHA loans during 2022. The total origination value was $907,275,000, with an average FHA loan value of $397,057.

    Stockton FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Stockton averaged 6.1% for the week of 2023-12-01, compared to the national average (all FHA variants) of 6.949% for the same period.

    Stockton's average FHA mortgage closing costs are $11,123.

    The average rate for the prior week (2023-11-24) was 6.51% and one month ago for the week of 2023-10-27, the average rate was 6.62%.

    The average rate one year ago was 5.73%.

    For refis of the same type during the week of 2023-12-01, the average rate was 5%.

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

    Stockton 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 Stockton level.

    Name # of Loans 2022 Avg. 30yFix Rate 2022 Avg. Closing Costs
    UNITED WHOLESALE MORTGAGE, LLC 256 4.50% $14,100
    QUICKEN LOANS, LLC 127 4.43% $13,320
    LOANDEPOT.COM, LLC 106 4.67% $13,906
    CALIBER HOME LOANS, INC. 77 4.20% $14,777
    AMERICAN PACIFIC MORTGAGE CORPORATION 76 4.89% $15,520
    SUMMIT FUNDING, INC. 72 5.04% $17,055
    FINANCE OF AMERICA MORTGAGE LLC 71 4.63% $16,596
    HOME POINT FINANCIAL CORPORATION 61 4.17% $12,749
    CROSSCOUNTRY MORTGAGE, LLC 56 5.28% $16,465
    DHI MORTGAGE COMPANY, LTD. 53 4.70% $13,781
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 43 4.82% $14,473
    FREEDOM MORTGAGE CORPORATION 37 4.60% $14,399
    Paramount Residential Mortgage Group, Inc. 36 4.90% $15,779
    KBHS HOME LOANS, LLC 33 5.13% $21,834
    HOMEOWNERS FINANCIAL GROUP USA, LLC 32 5.11% $16,474
    Commerce Home Mortgage, Inc. 30 4.71% $14,764
    SCENIC OAKS FUNDING, INC. 24 4.49% $16,359
    PENNYMAC LOAN SERVICES, LLC 23 4.17% $11,930
    Carrington Mortgage Services, LLC 23 4.98% $14,987
    LAKEVIEW LOAN SERVICING, LLC 22 3.83% $11,184
    PRIMARY RESIDENTIAL MORTGAGE, INC. 21 5.10% $18,663
    Mr. Cooper ( Nationstar Mortgage ) 20 3.81% $17,046
    ROUNDPOINT MORTGAGE SERVICING CORPORATION 20 4.71% $12,419
    GUILD MORTGAGE COMPANY 20 5.44% $19,499
    K. HOVNANIAN AMERICAN MORTGAGE, L.L.C. 19 4.38% $16,803
    HOMEAMERICAN MORTGAGE CORPORATION 19 4.49% $9,629
    EVERETT FINANCIAL, INC. 19 5.43% $10,405
    RESIDENTIAL BANCORP 18 4.55% $15,288
    NATIONS DIRECT MORTGAGE, LLC 17 4.34% $12,742
    Sierra Pacific Mortgage Company, Inc. 17 4.82% $16,387
    HOMEBRIDGE FINANCIAL SERVICES, INC. 17 4.48% $14,382
    AMERISAVE MORTGAGE CORPORATION 16 4.57% $15,356
    EVERGREEN MONEYSOURCE MORTGAGE COMPANY 15 5.02% $14,991
    Equity Prime Mortgage LLC 14 5.34% $18,704
    MOVEMENT MORTGAGE, LLC 14 4.63% $16,445
    CMG MORTGAGE, INC. 13 4.66% $16,197
    PLANET HOME LENDING, LLC 12 3.99% $14,291
    BROKER SOLUTIONS, INC. 12 4.71% $14,103
    SUN WEST MORTGAGE COMPANY, INC. 11 4.48% $14,664
    OCMBC, INC. 11 5.16% $16,326
    Lakeview Community Capital, LLC 10 3.35% $7,596
    Golden Empire Mortgage, Inc. 10 4.94% $17,247
    S1L, Inc. 10 4.36% $14,346
    MOUNTAIN WEST FINANCIAL, INC. 10 4.48% $18,985
    LAND HOME FINANCIAL SERVICES, INC. 10 4.50% $16,648
    Hometown Equity Mortgage, LLC 9 5.22% $18,772
    Amerifirst Financial, Inc. 9 4.69% $10,537
    GUARANTEED RATE, INC. 9 4.59% $14,186
    Flagstar Bank, FSB 9 4.81% $14,677
    TOP FLITE FINANCIAL, INC. 9 5.35% $18,732
    MASON MCDUFFIE MORTGAGE CORPORATION 8 4.89% $16,820
    NEWREZ LLC 8 4.55% $11,541
    ACADEMY MORTGAGE CORPORATION 7 5.77% $15,269
    Century Mortgage Company DBA Century Lending Company 7 5.07% $16,417
    CARDINAL FINANCIAL 7 4.70% $15,734
    CANOPY MORTGAGE, LLC 7 4.93% $18,812
    CHERRY CREEK MORTGAGE, LLC 7 5.34% $5,585
    SECURITYNATIONAL MORTGAGE COMPANY 7 5.05% $18,494
    SNAPFI, INC. 7 3.95% $12,674
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 7 5.16% $12,929
    Nations Lending Corporation 6 4.21% $19,348
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 6 4.44% $14,622
    First Guaranty Mortgage Corporation 5 3.93% $13,612
    AMCAP MORTGAGE, LTD. 5 5.08% $22,094
    VILLAGE CAPITAL MORTGAGE 5 3.88% $18,103
    ENVOY MORTGAGE, LTD 5 5.53% $21,316
    AHL FUNDING 5 3.47% $17,341
    DIGNIFIED HOME LOANS, LLC 5 4.90% $13,419
    BECKAM FUNDING CORP. 4 5.94% $25,160
    ALAMEDA MORTGAGE CORPORATION 4 4.63% $18,930
    CALCON MUTUAL MORTGAGE LLC 4 5.70% $17,553
    Platinum Home Mortgage Corporation 4 5.66% $18,089
    PREMIER LENDING, INC. 4 2.94% $9,183
    LADERA LENDING, INC. 3 4.58% $10,596
    NFM, INC. 3 4.38% $12,275
    PACIFIC RESIDENTIAL MORTGAGE, LLC 3 3.79% $13,275
    BAY EQUITY LLC 3 4.71% $14,554
    Bank of America 3 4.63% $11,846
    EAGLE HOME MORTGAGE, LLC 3 4.71% $22,773
    MLD MORTGAGE INC. 3 6.16% $17,540
    THE GOLDEN 1 3 3.33% $14,050
    AMERIFIRST FINANCIAL CORPORATION 3 4.46% $14,688
    TRAVIS CREDIT UNION 3 3.75% $11,681
    UNION HOME MORTGAGE CORP. 3 4.21% $9,827
    VERITAS FUNDING, LLC 3 4.46% $15,895
    EMBRACE HOME LOANS, INC. 2 4.87% $10,824
    MORIA DEVELOPMENT, INC. 2 5.13% $19,767
    Plains Commerce Bank 2 4.88% $18,440
    LOANPAL, LLC 2 3.81% $17,463
    The Federal Savings Bank 2 3.69% $18,853
    NETWORK CAPITAL FUNDING CORPORATION 2 4.94% $17,849
    MUFG Union Bank 2 3.50% $12,997
    INSPIRE HOME LOANS INC. 2 3.94% $15,000
    AMERICAN FINANCIAL RESOURCES, INC. 2 5.31% $15,849
    Northpointe Bank 2 5.25% $12,213
    Hometown Lenders, Inc. 2 4.81% $21,147
    Pacific Lending LLC 2 4.44% $17,414
    NATIONWIDE MORTGAGE BANKERS, INC. 2 5.38% $21,244
    PRIMELENDING, A PLAINSCAPITAL COMPANY 2 4.69% $23,126
    GUARANTY HOME MORTGAGE CORPORATION 2 4.38% $17,324
    MUTUAL OF OMAHA MORTGAGE, INC. 2 4.94% $21,051
    South Pacific Financial Corporation 2 4.00% $23,012
    SOVEREIGN LENDING GROUP INCORPORATED 2 5.13% $14,605
    Stride Bank 1 4.75% $11,985
    ARC HOME LLC 1 2.75% $10,319
    AmeriHome Mortgage Company, LLC 1 2.63% $8,129
    TJC Mortgage, Inc. 1 4.38% $20,787
    United Fidelity Funding Corp. 1 3.63% $10,008
    AMERICAN FINANCING CORPORATION 1 2.88% $10,288
    U.S. Bank 1 4.75% $11,823
    V.I.P. MORTGAGE, INC. 1 4.13% $19,242
    JPMorgan Chase Bank 1 2.99% $6,956
    RESIDENTIAL WHOLESALE MORTGAGE, INC. 1 4.63% $13,680
    INTERCAP LENDING INC. 1 5.13% $15,490
    LEADERONE FINANCIAL CORPORATION 1 4.88% $7,244
    LENOX FINANCIAL MORTGAGE CORPORATION 1 5.25% $13,846
    Loan Simple, Inc. 1 4.25% $16,353
    HOMESIDE FINANCIAL, LLC 1 5.88% $31,707
    Mortgage Research Center, LLC 1 3.50% $14,770
    MORTGAGE SOLUTIONS OF COLORADO, LLC 1 4.25% $16,512
    HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 1 4.63% $14,134
    GUARANTEED RATE AFFINITY, LLC 1 6.63% $11,028
    Fremont Bank 1 2.62% $6,949
    Franklin Loan Corporation 1 5.63% $10,629
    FBC MORTGAGE, LLC 1 6.75% $7,580
    EMM LOANS LLC 1 2.25% $13,684
    PANORAMA MORTGAGE GROUP, LLC 1 5.63% $22,674
    DIRECTIONS EQUITY, LLC 1 6.25% $18,737
    Wyndham Capital Mortgage, Inc. 1 5.63% $8,996
    PLAZA HOME MORTGAGE, INC. 1 5.13% $20,233
    ZILLOW HOME LOANS, LLC 1 4.38% $11,810
    PREMIER MORTGAGE RESOURCES, L.L.C. 1 5.25% $18,283
    DAS Acquisition Company, LLC 1 6.25% $17,851
    Cornerstone First Mortgage, Inc 1 3.50% $13,716
    Citizens Bank 1 5.25% $13,996
    Residential Mortgage Solutions, Inc. 1 4.25% $9,438
    JMAC LENDING, INC. 1 3.25% $8,651
    CHURCHILL MORTGAGE CORPORATION 1 5.25% $12,797
    CAMPOS FINANCIAL CORP. 1 3.75% $27,674
    BEST FINANCE CAPITAL, INC. 1 5.25% $12,878
    Bank of the West 1 5.88% $10,941
    STEARNS LENDING, LLC 1 4.25% $9,717

    The top Stockton FHA lender as defined by loan originations is UNITED WHOLESALE MORTGAGE, LLC, with 256 FHA loans originated. Their average total fees are $14,100, which is $780 higher than the next largest lender, QUICKEN LOANS, LLC.

    The lowest fee Stockton FHA lenders (with over 10 loans originated) are Lakeview Community Capital, LLC ($7,596), HOMEAMERICAN MORTGAGE CORPORATION ($9,629), EVERETT FINANCIAL, INC. ($10,405), LAKEVIEW LOAN SERVICING, LLC ($11,184) and PENNYMAC LOAN SERVICES, LLC ($11,930).

    The lowest rate Stockton FHA lenders (with over 10 loans originated) are Lakeview Community Capital, LLC (3.35%), Mr. Cooper ( Nationstar Mortgage ) (3.81%), LAKEVIEW LOAN SERVICING, LLC (3.83%), PLANET HOME LENDING, LLC (3.99%) and HOME POINT FINANCIAL CORPORATION (4.17%).

    Stockton FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    STOCKTON, CA SAN JOAQUIN 2022 $563,500 $721,400 $872,000 $1,083,650
    STOCKTON, CA SAN JOAQUIN 2023 $656,650 $840,650 $1,016,150 $1,262,800

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Stockton (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 $383,500 (12.1%) $466,243 (8.2%) 1.42 825
    2018-02-01 $377,000 (8.0%) $467,496 (9.4%) 1.37 821
    2018-03-01 $375,000 (7.9%) $454,806 (6.6%) 1.32 828
    2018-04-01 $383,000 (6.4%) $470,046 (8.8%) 1.30 920
    2018-05-01 $383,000 (3.0%) $478,855 (7.4%) 1.28 1,039
    2018-06-01 $389,900 (2.8%) $482,302 (7.6%) 1.30 1,151
    2018-07-01 $389,900 (1.3%) $475,160 (6.0%) 1.30 1,216
    2018-08-01 $385,500 (1.5%) $464,159 (3.8%) 1.29 1,371
    2018-09-01 $385,000 (1.6%) $464,069 (4.0%) 1.29 1,475
    2018-10-01 $385,000 (2.7%) $460,830 (3.3%) 1.30 1,506
    2018-11-01 $386,425 (2.9%) $509,344 (12.2%) 1.31 1,504
    2018-12-01 $389,000 (2.4%) $461,578 (0.7%) 1.34 1,395
    2019-01-01 $386,250 (0.7%) $452,564 (-2.9%) 1.33 1,206
    2019-02-01 $380,000 (0.8%) $452,218 (-3.3%) 1.28 1,151
    2019-03-01 $400,082 (6.7%) $476,973 (4.9%) 1.31 1,141
    2019-04-01 $417,000 (8.9%) $488,914 (4.0%) 1.32 1,176
    2019-05-01 $419,500 (9.5%) $497,400 (3.9%) 1.31 1,304
    2019-06-01 $424,999 (9.0%) $554,533 (15.0%) 1.33 1,403
    2019-07-01 $428,598 (9.9%) $873,615 (83.9%) 1.34 1,456
    2019-08-01 $426,848 (10.7%) $1,030,356 (122.0%) 1.35 1,441
    2019-09-01 $422,121 (9.6%) $782,546 (68.6%) 1.35 1,467
    2019-10-01 $419,247 (8.9%) $534,562 (16.0%) 1.35 1,474
    2019-11-01 $425,000 (10.0%) $482,396 (-5.3%) 1.39 1,378
    2019-12-01 $432,500 (11.2%) $491,445 (6.5%) 1.44 1,131
    2020-01-01 $424,975 (10.0%) $494,574 (9.3%) 1.42 981
    2020-02-01 $434,000 (14.2%) $504,604 (11.6%) 1.42 893
    2020-03-01 $429,225 (7.3%) $500,527 (4.9%) 1.35 905
    2020-04-01 $429,450 (3.0%) $502,525 (2.8%) 1.35 975
    2020-05-01 $432,450 (3.1%) $510,224 (2.6%) 1.31 964
    2020-06-01 $445,750 (4.9%) $532,692 (-3.9%) 1.31 772
    2020-07-01 $445,000 (3.8%) $548,761 (-37.2%) 1.29 640
    2020-08-01 $449,000 (5.2%) $548,911 (-46.7%) 1.29 566
    2020-09-01 $455,450 (7.9%) $568,386 (-27.4%) 1.31 562
    2020-10-01 $450,000 (7.3%) $550,808 (3.0%) 1.29 555
    2020-11-01 $450,000 (5.9%) $574,401 (19.1%) 1.32 490
    2020-12-01 $449,950 (4.0%) $578,313 (17.7%) 1.34 400
    2021-01-01 $450,000 (5.9%) $601,515 (21.6%) 1.34 334
    2021-02-01 $459,500 (5.9%) $607,067 (20.3%) 1.34 330
    2021-03-01 $453,450 (5.6%) $590,781 (18.0%) 1.29 382
    2021-04-01 $498,250 (16.0%) $625,326 (24.4%) 1.35 410
    2021-05-01 $499,000 (15.4%) $623,769 (22.3%) 1.33 446
    2021-06-01 $524,595 (17.7%) $643,418 (20.8%) 1.38 569
    2021-07-01 $540,000 (21.4%) $643,722 (17.3%) 1.42 677
    2021-08-01 $537,450 (19.7%) $650,459 (18.5%) 1.43 792
    2021-09-01 $542,250 (19.1%) $646,095 (13.7%) 1.45 825
    2021-10-01 $539,570 (19.9%) $632,949 (14.9%) 1.44 816
    2021-11-01 $540,144 (20.0%) $632,138 (10.1%) 1.44 649
    2021-12-01 $542,475 (20.6%) $649,193 (12.3%) 1.47 491
    2022-01-01 $548,250 (21.8%) $660,166 (9.8%) 1.48 383
    2022-02-01 $565,000 (23.0%) $700,971 (15.5%) 1.47 395
    2022-03-01 $595,000 (31.2%) $740,624 (25.4%) 1.49 447
    2022-04-01 $600,000 (20.4%) $741,732 (18.6%) 1.43 559
    2022-05-01 $627,000 (25.7%) $733,646 (17.6%) 1.43 798
    2022-06-01 $631,997 (20.5%) $718,105 (11.6%) 1.41 1,031
    2022-07-01 $601,278 (11.4%) $682,566 (6.0%) 1.35 1,321
    2022-08-01 $594,795 (10.7%) $664,683 (2.2%) 1.38 1,333
    2022-09-01 $581,950 (7.3%) $659,698 (2.1%) 1.36 1,237
    2022-10-01 $560,000 (3.8%) $640,970 (1.3%) 1.32 1,239
    2022-11-01 $550,450 (1.9%) $636,525 (0.7%) 1.32 1,138
    2022-12-01 $542,745 (0.1%) $631,515 (-2.7%) 1.34 955
    2023-01-01 $539,495 (-1.6%) $623,692 (-5.5%) 1.34 798
    2023-02-01 $543,998 (-3.7%) $633,471 (-9.6%) 1.31 672
    2023-03-01 $547,500 (-8.0%) $646,803 (-12.7%) 1.29 574
    2023-04-01 $579,000 (-3.5%) $685,337 (-7.6%) 1.35 538
    2023-05-01 $575,000 (-8.3%) $681,551 (-7.1%) 1.30 546
    2023-06-01 $582,000 (-7.9%) $698,264 (-2.8%) 1.31 534
    2023-07-01 $587,800 (-2.2%) $705,176 (3.3%) 1.34 579
    2023-08-01 $585,965 (-1.5%) $681,632 (2.6%) 1.35 626
    2023-09-01 $579,450 (-0.4%) $671,364 (1.8%) 1.35 672
    2023-10-01 $582,500 (4.0%) $673,903 (5.1%) 1.37 716
    2023-11-01 $575,000 (4.5%) $677,296 (6.4%) 1.37 783
    Stockton's median listing price for 2023-11-01 was $575,000, a difference of $24,550 (4.5%) versus the prior year and $-7,500 versus the prior month.

    Stockton's median listing price comes in at 137% of the national average.

    Stockton's average listing price for 2023-11-01 was $677,296, a difference of $40,771 (6.4%) versus the prior year and $3,393 versus the prior month.

    For the 2023-11-01 period, Stockton had 783 MLS listings, a difference of 67 listings (9%) versus the prior month and -355 listings (-31%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Stockton (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 53 days 1,891 sqft
    2018-02-01 37 days 1,824 sqft
    2018-03-01 33 days 1,787 sqft
    2018-04-01 31 days 1,797 sqft
    2018-05-01 30 days 1,800 sqft
    2018-06-01 36 days 1,830 sqft
    2018-07-01 37 days 1,819 sqft
    2018-08-01 37 days 1,789 sqft
    2018-09-01 37 days 1,802 sqft
    2018-10-01 44 days 1,809 sqft
    2018-11-01 45 days 1,794 sqft
    2018-12-01 53 days 1,800 sqft
    2019-01-01 63 days 1,786 sqft
    2019-02-01 48 days 1,774 sqft
    2019-03-01 40 days 1,827 sqft
    2019-04-01 37 days 1,873 sqft
    2019-05-01 36 days 1,917 sqft
    2019-06-01 38 days 1,900 sqft
    2019-07-01 43 days 1,926 sqft
    2019-08-01 46 days 1,920 sqft
    2019-09-01 46 days 1,879 sqft
    2019-10-01 47 days 1,851 sqft
    2019-11-01 52 days 1,886 sqft
    2019-12-01 64 days 1,889 sqft
    2020-01-01 66 days 1,856 sqft
    2020-02-01 50 days 1,890 sqft
    2020-03-01 41 days 1,877 sqft
    2020-04-01 44 days 1,867 sqft
    2020-05-01 56 days 1,897 sqft
    2020-06-01 58 days 1,918 sqft
    2020-07-01 58 days 1,899 sqft
    2020-08-01 40 days 1,898 sqft
    2020-09-01 35 days 1,886 sqft
    2020-10-01 35 days 1,826 sqft
    2020-11-01 38 days 1,827 sqft
    2020-12-01 46 days 1,779 sqft
    2021-01-01 44 days 1,774 sqft
    2021-02-01 28 days 1,701 sqft
    2021-03-01 27 days 1,638 sqft
    2021-04-01 23 days 1,728 sqft
    2021-05-01 24 days 1,753 sqft
    2021-06-01 21 days 1,830 sqft
    2021-07-01 25 days 1,827 sqft
    2021-08-01 25 days 1,844 sqft
    2021-09-01 30 days 1,838 sqft
    2021-10-01 33 days 1,836 sqft
    2021-11-01 40 days 1,825 sqft
    2021-12-01 45 days 1,803 sqft
    2022-01-01 39 days 1,760 sqft
    2022-02-01 28 days 1,737 sqft
    2022-03-01 25 days 1,821 sqft
    2022-04-01 24 days 1,890 sqft
    2022-05-01 24 days 1,905 sqft
    2022-06-01 26 days 1,925 sqft
    2022-07-01 31 days 1,894 sqft
    2022-08-01 38 days 1,900 sqft
    2022-09-01 45 days 1,896 sqft
    2022-10-01 48 days 1,871 sqft
    2022-11-01 51 days 1,878 sqft
    2022-12-01 62 days 1,848 sqft
    2023-01-01 65 days 1,852 sqft
    2023-02-01 53 days 1,871 sqft
    2023-03-01 45 days 1,849 sqft
    2023-04-01 33 days 1,910 sqft
    2023-05-01 34 days 1,859 sqft
    2023-06-01 33 days 1,897 sqft
    2023-07-01 30 days 1,885 sqft
    2023-08-01 32 days 1,865 sqft
    2023-09-01 35 days 1,837 sqft
    2023-10-01 38 days 1,868 sqft
    2023-11-01 39 days 1,841 sqft
    Stockton's median listing age (time on market) for 2023-11-01 was 39 days. This is -25% shorter than the same period one year ago.

    Stockton's median square footage for active listings during the 2023-11-01 period was 1,841 sqft. One year prior, the average listing was 1,878 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).