Tallahassee FHA Loan Rates, Closing Costs & Stats

TALLAHASSEE, FL

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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.

    Tallahassee's 134 lenders originated 1,243 FHA loans during 2022. The total origination value was $263,975,000, with an average FHA loan value of $212,369.

    Tallahassee FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Tallahassee averaged 6.7% for the week of 2023-12-01, compared to the national average (all FHA variants) of 6.949% for the same period.

    Tallahassee's average FHA mortgage closing costs are $7,525.

    The average rate for the prior week (2023-11-24) was 6.71% and one month ago for the week of 2023-10-27, the average rate was 6.92%.

    The average rate one year ago was 5.94%.

    For refis of the same type during the week of 2023-12-01, the average rate was 5.74%.

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

    Tallahassee 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 Tallahassee level.

    Name # of Loans 2022 Avg. 30yFix Rate 2022 Avg. Closing Costs
    UNIVERSITY LENDING GROUP, LLC 133 4.72% $9,059
    LOANDEPOT.COM, LLC 123 4.98% $10,362
    QUICKEN LOANS, LLC 91 4.44% $9,676
    MOVEMENT MORTGAGE, LLC 78 4.89% $8,941
    DELMAR FINANCIAL COMPANY 51 4.80% $10,414
    UNITED WHOLESALE MORTGAGE, LLC 46 5.08% $10,416
    University Bank 37 6.17% $9,607
    CARDINAL FINANCIAL 31 5.20% $11,602
    Ameris Bank 28 5.10% $9,165
    AMERIFIRST FINANCIAL CORPORATION 27 4.87% $9,163
    Capital City Home Loans, LLC 23 4.85% $8,895
    Centennial Bank 23 5.14% $9,275
    CALIBER HOME LOANS, INC. 20 4.65% $9,228
    VAN DYK MORTGAGE CORPORATION 20 4.79% $7,366
    BAY CAPITAL MORTGAGE CORPORATION 19 5.08% $9,753
    Flagstar Bank, FSB 13 4.38% $9,523
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 13 5.01% $9,509
    PENNYMAC LOAN SERVICES, LLC 13 4.23% $8,160
    Carrington Mortgage Services, LLC 13 4.94% $11,327
    CROSSCOUNTRY MORTGAGE, LLC 12 4.92% $10,155
    GMFS LLC 12 4.11% $7,370
    Mr. Cooper ( Nationstar Mortgage ) 12 5.00% $11,795
    PLAZA HOME MORTGAGE, INC. 11 4.97% $10,435
    Equity Prime Mortgage LLC 10 5.45% $8,543
    FREEDOM MORTGAGE CORPORATION 9 5.25% $8,961
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 8 4.36% $10,385
    AMERICAN FINANCING CORPORATION 8 4.37% $10,043
    Synovus Bank 8 4.19% $8,581
    HOME POINT FINANCIAL CORPORATION 7 3.88% $13,490
    BROKER SOLUTIONS, INC. 7 4.75% $14,179
    Paramount Residential Mortgage Group, Inc. 6 5.08% $10,968
    AMERICAN PACIFIC MORTGAGE CORPORATION 6 5.38% $10,678
    MICHIGAN MUTUAL, INC. 5 5.30% $11,984
    HOMESIDE FINANCIAL, LLC 5 4.83% $9,373
    MUTUAL OF OMAHA MORTGAGE, INC. 5 5.35% $10,593
    Nations Lending Corporation 5 5.53% $8,097
    TruHome Solutions, LLC 5 4.88% $10,877
    AMERISAVE MORTGAGE CORPORATION 5 4.73% $9,866
    LAKEVIEW LOAN SERVICING, LLC 5 4.30% $7,283
    Bell Bank 5 4.95% $6,547
    TOWNE MORTGAGE COMPANY 4 4.84% $7,591
    HOMEBRIDGE FINANCIAL SERVICES, INC. 4 4.38% $11,735
    1ST SIGNATURE LENDING, LLC 4 5.00% $11,380
    Bank of England 4 5.47% $7,957
    Truist 4 4.91% $8,384
    NEWREZ LLC 4 4.63% $6,954
    FBC MORTGAGE, LLC 3 5.16% $7,538
    ALLIED MORTGAGE GROUP, INC. 3 4.63% $15,342
    Blue Ridge Bank 3 4.92% $9,482
    DHI MORTGAGE COMPANY, LTD. 3 4.00% $11,221
    Bank of America 3 4.17% $3,760
    Regions Bank 3 4.96% $9,023
    JPMorgan Chase Bank 3 3.70% $9,336
    Lakeview Community Capital, LLC 3 4.96% $7,284
    SUN WEST MORTGAGE COMPANY, INC. 3 3.92% $13,053
    THE MORTGAGE FIRM, INC. 3 5.96% $9,875
    GUARANTEED RATE, INC. 3 4.70% $13,511
    Mortgage Research Center, LLC 3 4.79% $4,924
    Wells Fargo Bank 3 4.83% $8,980
    AMCAP MORTGAGE, LTD. 3 6.66% $14,456
    ZILLOW HOME LOANS, LLC 2 4.88% $8,174
    Barrington Bank & Trust Company, N.A. 2 5.50% $7,879
    BETTER MORTGAGE CORPORATION 2 5.81% $11,826
    CMG MORTGAGE, INC. 2 6.25% $12,647
    EMM LOANS LLC 2 5.19% $12,747
    EVERETT FINANCIAL, INC. 2 5.94% $7,481
    LIBERTY HOME MORTGAGE CORPORATION 2 4.25% $6,141
    MY MORTGAGE, INC. 2 4.94% $13,657
    NATIONS DIRECT MORTGAGE, LLC 2 5.12% $10,908
    NATIONWIDE MORTGAGE BANKERS, INC. 2 6.75% $11,106
    OCEANSIDE MORTGAGE COMPANY 2 3.94% $6,770
    Plains Commerce Bank 2 5.56% $8,803
    PREMIER LENDING, INC. 2 5.00% $10,382
    PRIMELENDING, A PLAINSCAPITAL COMPANY 2 5.75% $8,934
    RELIANCE FIRST CAPITAL, LLC 2 4.19% $8,327
    TOP FLITE FINANCIAL, INC. 2 4.50% $17,034
    UNITED MORTGAGE CORP 2 5.19% $8,169
    VILLAGE CAPITAL MORTGAGE 2 4.75% $6,982
    MORTGAGE EQUITY PARTNERS LLC 1 6.63% $11,019
    Mortgage Lenders Investment Trading Corporation 1 6.75% $6,897
    GUILD MORTGAGE COMPANY 1 5.13% $11,161
    MORTGAGE SOLUTIONS OF COLORADO, LLC 1 5.75% $14,508
    GUARANTEED RATE AFFINITY, LLC 1 4.75% $15,155
    First Option Mortgage, LLC 1 6.63% $13,872
    First Guaranty Mortgage Corporation 1 3.63% $16,008
    AmeriHome Mortgage Company, LLC 1 5.13% $8,279
    AMERICAN NATIONWIDE MORTGAGE COMPANY, INC. 1 4.00% $10,890
    First Federal Bank 1 4.63% $9,655
    AMERICAN FINANCIAL RESOURCES, INC. 1 4.13% $12,367
    NETWORK CAPITAL FUNDING CORPORATION 1 6.13% $5,478
    NEW DAY FINANCIAL, LLC 1 3.88% $4,570
    Financial Freedom Mortgage, LLC 1 6.75% $10,625
    NEXERA HOLDING LLC 1 4.13% $9,246
    NFM, INC. 1 4.75% $11,395
    North American Savings Bank, F.S.B. 1 3.63% $7,200
    U.S. Bank 1 5.50% $9,909
    FINANCE OF AMERICA MORTGAGE LLC 1 4.50% $5,484
    EMBRACE HOME LOANS, INC. 1 5.25% $15,142
    US MORTGAGE CORPORATION 1 4.00% $14,091
    PLANET HOME LENDING, LLC 1 5.50% $12,155
    CORNERSTONE HOME LENDING, INC. 1 3.25% $9,859
    AHL FUNDING 1 6.75% $15,752
    ABSOLUTE HOME MORTGAGE CORPORATION 1 5.25% $8,560
    COLUMBUS CAPITAL LENDING, LLC 1 4.75% $10,688
    Colonial Savings, F.A. 1 5.38% $14,045
    VYSTAR 1 4.38% $6,569
    RUOFF MORTGAGE COMPANY, INC. 1 3.50% $5,458
    Semper Home Loans, Inc. 1 5.63% $10,462
    SIRVA MORTGAGE, INC. 1 4.00% $12,270
    SOUTHPOINT FINANCIAL SERVICES, INC. 1 4.25% $25,709
    South State Bank 1 4.88% $7,208
    SOUTHWEST STAGE FUNDING, LLC 1 7.25% $10,614
    STEARNS LENDING, LLC 1 2.75% $4,574
    Strong Home Mortgage, LLC 1 2.88% $6,368
    Citizens Bank 1 4.75% $11,305
    CHAMPIONS MORTGAGE LLC 1 4.75% $7,971
    Texana Bank 1 5.50% $8,774
    Century Mortgage Company DBA Century Lending Company 1 3.13% $7,652
    Waterstone Mortgage Corporation 1 4.88% $7,729
    CALCON MUTUAL MORTGAGE LLC 1 8.38% $13,000
    ASPIRE FINANCIAL, INC. 1 6.00% $8,831
    Arvest Bank 1 4.88% $10,283
    Ixonia Bank 1 5.75% $12,349
    INLANTA MORTGAGE, INC. 1 3.63% $7,195
    Hometown Lenders, Inc. 1 7.63% $5,790
    Hometown Equity Mortgage, LLC 1 6.25% $17,825
    LEADERONE FINANCIAL CORPORATION 1 3.75% $11,587
    ACADEMY MORTGAGE CORPORATION 1 5.50% $10,678
    HOMESPIRE MORTGAGE CORPORATION 1 5.63% $8,356
    LOANPAL, LLC 1 4.63% $19,605
    Loan Simple, Inc. 1 4.50% $12,180
    Hancock Whitney Bank 1 5.63% $8,889
    MILEND, INC. 1 6.13% $11,851
    MLD MORTGAGE INC. 1 5.50% $13,663

    The top Tallahassee FHA lender as defined by loan originations is UNIVERSITY LENDING GROUP, LLC, with 133 FHA loans originated. Their average total fees are $9,059, which is $1,303 lower than the next largest lender, LOANDEPOT.COM, LLC.

    The lowest fee Tallahassee FHA lenders (with over 10 loans originated) are VAN DYK MORTGAGE CORPORATION ($7,366), GMFS LLC ($7,370), PENNYMAC LOAN SERVICES, LLC ($8,160), Equity Prime Mortgage LLC ($8,543) and Capital City Home Loans, LLC ($8,895).

    The lowest rate Tallahassee FHA lenders (with over 10 loans originated) are GMFS LLC (4.11%), PENNYMAC LOAN SERVICES, LLC (4.23%), Flagstar Bank, FSB (4.38%), QUICKEN LOANS, LLC (4.44%) and CALIBER HOME LOANS, INC. (4.65%).

    Tallahassee FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    TALLAHASSEE, FL GADSDEN 2022 $420,680 $538,650 $651,050 $809,150
    TALLAHASSEE, FL JEFFERSON 2022 $420,680 $538,650 $651,050 $809,150
    TALLAHASSEE, FL LEON 2022 $420,680 $538,650 $651,050 $809,150
    TALLAHASSEE, FL WAKULLA 2022 $420,680 $538,650 $651,050 $809,150
    TALLAHASSEE, FL GADSDEN 2023 $472,030 $604,400 $730,525 $907,900
    TALLAHASSEE, FL JEFFERSON 2023 $472,030 $604,400 $730,525 $907,900
    TALLAHASSEE, FL LEON 2023 $472,030 $604,400 $730,525 $907,900
    TALLAHASSEE, FL WAKULLA 2023 $472,030 $604,400 $730,525 $907,900

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Tallahassee (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%) $295,037 (9.1%) 0.82 1,136
    2018-02-01 $220,000 (12.9%) $296,648 (11.4%) 0.80 1,150
    2018-03-01 $224,950 (12.5%) $300,808 (11.8%) 0.79 1,207
    2018-04-01 $224,075 (12.0%) $300,255 (9.9%) 0.76 1,285
    2018-05-01 $226,200 (11.7%) $303,198 (8.7%) 0.76 1,326
    2018-06-01 $233,900 (13.1%) $305,864 (8.4%) 0.78 1,347
    2018-07-01 $235,000 (11.9%) $301,841 (6.7%) 0.78 1,376
    2018-08-01 $229,500 (9.3%) $298,145 (5.2%) 0.77 1,433
    2018-09-01 $223,950 (5.7%) $294,164 (2.1%) 0.75 1,414
    2018-10-01 $222,780 (0.5%) $288,905 (-1.2%) 0.75 1,364
    2018-11-01 $224,340 (2.0%) $289,397 (-2.1%) 0.76 1,331
    2018-12-01 $223,780 (1.8%) $288,355 (-1.9%) 0.77 1,285
    2019-01-01 $225,000 (2.3%) $292,722 (-0.8%) 0.78 1,195
    2019-02-01 $231,125 (5.1%) $291,860 (-1.6%) 0.78 1,197
    2019-03-01 $235,000 (4.5%) $287,225 (-4.5%) 0.77 1,472
    2019-04-01 $234,950 (4.9%) $282,594 (-5.9%) 0.75 1,854
    2019-05-01 $232,600 (2.8%) $284,541 (-6.2%) 0.73 1,894
    2019-06-01 $238,360 (1.9%) $291,539 (-4.7%) 0.74 1,871
    2019-07-01 $239,800 (2.0%) $292,071 (-3.2%) 0.75 1,893
    2019-08-01 $239,900 (4.5%) $288,628 (-3.2%) 0.76 1,865
    2019-09-01 $239,900 (7.1%) $286,413 (-2.6%) 0.77 1,788
    2019-10-01 $239,900 (7.7%) $284,521 (-1.5%) 0.77 1,721
    2019-11-01 $235,000 (4.8%) $282,195 (-2.5%) 0.77 1,615
    2019-12-01 $229,450 (2.5%) $278,043 (-3.6%) 0.77 1,460
    2020-01-01 $232,590 (3.4%) $279,560 (-4.5%) 0.78 1,429
    2020-02-01 $235,000 (1.7%) $282,720 (-3.1%) 0.77 1,572
    2020-03-01 $240,000 (2.1%) $287,678 (0.2%) 0.75 1,656
    2020-04-01 $240,000 (2.2%) $287,848 (1.9%) 0.75 1,663
    2020-05-01 $241,000 (3.6%) $293,654 (3.2%) 0.73 1,659
    2020-06-01 $240,750 (1.0%) $290,319 (-0.4%) 0.71 1,701
    2020-07-01 $245,475 (2.4%) $290,808 (-0.4%) 0.71 1,670
    2020-08-01 $248,200 (3.5%) $295,220 (2.3%) 0.71 1,588
    2020-09-01 $249,900 (4.2%) $300,235 (4.8%) 0.72 1,555
    2020-10-01 $249,900 (4.2%) $301,043 (5.8%) 0.72 1,491
    2020-11-01 $241,550 (2.8%) $299,680 (6.2%) 0.71 1,438
    2020-12-01 $237,000 (3.3%) $299,850 (7.8%) 0.71 1,312
    2021-01-01 $239,900 (3.1%) $295,607 (5.7%) 0.72 1,225
    2021-02-01 $249,450 (6.2%) $299,066 (5.8%) 0.73 1,267
    2021-03-01 $250,000 (4.2%) $301,086 (4.7%) 0.71 1,331
    2021-04-01 $252,200 (5.1%) $300,986 (4.6%) 0.68 1,381
    2021-05-01 $259,900 (7.8%) $303,321 (3.3%) 0.69 1,424
    2021-06-01 $260,500 (8.2%) $307,341 (5.9%) 0.69 1,445
    2021-07-01 $260,000 (5.9%) $306,270 (5.3%) 0.69 1,458
    2021-08-01 $265,000 (6.8%) $309,583 (4.9%) 0.71 1,465
    2021-09-01 $268,850 (7.6%) $311,672 (3.8%) 0.72 1,486
    2021-10-01 $269,900 (8.0%) $316,156 (5.0%) 0.72 1,453
    2021-11-01 $273,000 (13.0%) $320,321 (6.9%) 0.73 1,365
    2021-12-01 $277,450 (17.1%) $323,338 (7.8%) 0.75 1,219
    2022-01-01 $289,000 (20.5%) $334,249 (13.1%) 0.78 1,011
    2022-02-01 $294,950 (18.2%) $340,203 (13.8%) 0.77 1,079
    2022-03-01 $289,900 (16.0%) $345,020 (14.6%) 0.73 1,066
    2022-04-01 $287,500 (14.0%) $344,550 (14.5%) 0.69 1,129
    2022-05-01 $292,917 (12.7%) $351,672 (15.9%) 0.67 1,240
    2022-06-01 $299,450 (15.0%) $363,700 (18.3%) 0.67 1,281
    2022-07-01 $310,000 (19.2%) $374,874 (22.4%) 0.70 1,298
    2022-08-01 $300,000 (13.2%) $372,617 (20.4%) 0.69 1,265
    2022-09-01 $307,475 (14.4%) $372,109 (19.4%) 0.72 1,166
    2022-10-01 $316,500 (17.3%) $380,008 (20.2%) 0.74 1,153
    2022-11-01 $319,925 (17.2%) $383,646 (19.8%) 0.77 1,155
    2022-12-01 $319,000 (15.0%) $383,927 (18.7%) 0.79 1,042
    2023-01-01 $310,500 (7.4%) $375,319 (12.3%) 0.77 975
    2023-02-01 $316,250 (7.2%) $376,072 (10.5%) 0.76 1,036
    2023-03-01 $325,250 (12.2%) $387,614 (12.4%) 0.77 1,065
    2023-04-01 $330,000 (14.8%) $392,010 (13.8%) 0.77 1,091
    2023-05-01 $329,500 (12.5%) $391,806 (11.4%) 0.75 1,090
    2023-06-01 $335,000 (11.9%) $395,136 (8.6%) 0.75 1,105
    2023-07-01 $339,900 (9.7%) $398,051 (6.2%) 0.77 1,105
    2023-08-01 $339,225 (13.1%) $397,887 (6.8%) 0.78 1,148
    2023-09-01 $329,900 (7.3%) $394,013 (5.9%) 0.77 1,150
    2023-10-01 $315,000 (-0.5%) $384,191 (1.1%) 0.74 1,202
    2023-11-01 $317,225 (-0.8%) $383,928 (0.1%) 0.76 1,239
    Tallahassee's median listing price for 2023-11-01 was $317,225, a difference of $-2,700 (-0.8%) versus the prior year and $2,225 versus the prior month.

    Tallahassee's median listing price comes in at 76% of the national average.

    Tallahassee's average listing price for 2023-11-01 was $383,928, a difference of $282 (0.1%) versus the prior year and $-263 versus the prior month.

    For the 2023-11-01 period, Tallahassee had 1,239 MLS listings, a difference of 37 listings (3%) versus the prior month and 84 listings (7%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Tallahassee (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 74 days 1,700 sqft
    2018-02-01 67 days 1,694 sqft
    2018-03-01 54 days 1,714 sqft
    2018-04-01 51 days 1,709 sqft
    2018-05-01 50 days 1,700 sqft
    2018-06-01 56 days 1,731 sqft
    2018-07-01 58 days 1,744 sqft
    2018-08-01 55 days 1,717 sqft
    2018-09-01 60 days 1,707 sqft
    2018-10-01 69 days 1,692 sqft
    2018-11-01 73 days 1,682 sqft
    2018-12-01 79 days 1,660 sqft
    2019-01-01 79 days 1,670 sqft
    2019-02-01 70 days 1,712 sqft
    2019-03-01 58 days 1,705 sqft
    2019-04-01 48 days 1,696 sqft
    2019-05-01 48 days 1,695 sqft
    2019-06-01 51 days 1,713 sqft
    2019-07-01 51 days 1,728 sqft
    2019-08-01 53 days 1,729 sqft
    2019-09-01 56 days 1,720 sqft
    2019-10-01 59 days 1,711 sqft
    2019-11-01 63 days 1,682 sqft
    2019-12-01 71 days 1,670 sqft
    2020-01-01 72 days 1,657 sqft
    2020-02-01 46 days 1,664 sqft
    2020-03-01 45 days 1,685 sqft
    2020-04-01 52 days 1,687 sqft
    2020-05-01 57 days 1,677 sqft
    2020-06-01 48 days 1,655 sqft
    2020-07-01 48 days 1,655 sqft
    2020-08-01 46 days 1,672 sqft
    2020-09-01 47 days 1,672 sqft
    2020-10-01 49 days 1,662 sqft
    2020-11-01 51 days 1,640 sqft
    2020-12-01 54 days 1,610 sqft
    2021-01-01 58 days 1,614 sqft
    2021-02-01 44 days 1,634 sqft
    2021-03-01 40 days 1,645 sqft
    2021-04-01 39 days 1,651 sqft
    2021-05-01 37 days 1,631 sqft
    2021-06-01 36 days 1,606 sqft
    2021-07-01 38 days 1,592 sqft
    2021-08-01 38 days 1,595 sqft
    2021-09-01 41 days 1,594 sqft
    2021-10-01 46 days 1,606 sqft
    2021-11-01 50 days 1,625 sqft
    2021-12-01 57 days 1,648 sqft
    2022-01-01 60 days 1,670 sqft
    2022-02-01 38 days 1,652 sqft
    2022-03-01 36 days 1,622 sqft
    2022-04-01 31 days 1,600 sqft
    2022-05-01 32 days 1,617 sqft
    2022-06-01 34 days 1,661 sqft
    2022-07-01 35 days 1,690 sqft
    2022-08-01 38 days 1,668 sqft
    2022-09-01 45 days 1,665 sqft
    2022-10-01 44 days 1,688 sqft
    2022-11-01 44 days 1,697 sqft
    2022-12-01 55 days 1,698 sqft
    2023-01-01 60 days 1,655 sqft
    2023-02-01 45 days 1,657 sqft
    2023-03-01 41 days 1,695 sqft
    2023-04-01 39 days 1,702 sqft
    2023-05-01 39 days 1,685 sqft
    2023-06-01 37 days 1,698 sqft
    2023-07-01 38 days 1,689 sqft
    2023-08-01 36 days 1,660 sqft
    2023-09-01 42 days 1,640 sqft
    2023-10-01 43 days 1,612 sqft
    2023-11-01 45 days 1,616 sqft
    Tallahassee's median listing age (time on market) for 2023-11-01 was 45 days. This is 1% longer than the same period one year ago.

    Tallahassee's median square footage for active listings during the 2023-11-01 period was 1,616 sqft. One year prior, the average listing was 1,697 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).