Toledo FHA Loan Rates, Closing Costs & Stats

TOLEDO, OH

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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.

    Toledo's 110 lenders originated 1,207 FHA loans during 2023. The total origination value was $197,105,000, with an average FHA loan value of $163,302.

    Toledo FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Toledo averaged 6.93% for the week of 2025-02-14, compared to the national average (all FHA variants) of 6.515% for the same period.

    Toledo's average FHA mortgage closing costs are $6,373.

    The average rate for the prior week (2025-02-07) was 6.74% and one month ago for the week of 2025-01-10, the average rate was 6.9%.

    The average rate one year ago was 6.53%.

    For refis of the same type during the week of 2025-02-14, the average rate was 7.33%.

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

    Toledo 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 Toledo level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    QUICKEN LOANS, LLC 197 6.38% $8,665
    The Huntington National Bank 101 6.93% $7,227
    UNION HOME MORTGAGE CORP. 73 7.03% $8,565
    LOANDEPOT.COM, LLC 48 6.66% $9,180
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 41 6.89% $6,219
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 40 6.75% $8,752
    UNITED WHOLESALE MORTGAGE, LLC 40 6.52% $10,403
    EQUITY RESOURCES, INC. 39 6.96% $7,482
    Fifth Third Bank 35 6.54% $5,164
    CROSSCOUNTRY MORTGAGE, LLC 33 6.91% $8,937
    NEWREZ LLC 31 6.62% $7,448
    NFM, INC. 24 7.41% $10,005
    KeyBank 23 6.17% $6,933
    VAN DYK MORTGAGE CORPORATION 20 7.22% $6,803
    FREEDOM MORTGAGE CORPORATION 18 6.79% $12,029
    Flagstar Bank, FSB 17 7.17% $8,710
    Mr. Cooper ( Nationstar Mortgage ) 17 6.12% $9,561
    Citizens Bank 16 6.31% $6,185
    BROKER SOLUTIONS, INC. 15 6.78% $9,388
    GVC MORTGAGE, INC. 15 6.99% $8,642
    MID AMERICA MORTGAGE, INC. 13 6.61% $4,673
    RUOFF MORTGAGE COMPANY, INC. 13 7.18% $6,110
    PENNYMAC LOAN SERVICES, LLC 12 6.64% $7,640
    GUARANTEED RATE, INC. 12 6.78% $9,630
    Carrington Mortgage Services, LLC 9 6.01% $8,975
    MUTUAL OF OMAHA MORTGAGE, INC. 9 6.85% $9,706
    PRIMELENDING, A PLAINSCAPITAL COMPANY 8 7.25% $8,823
    LAKEVIEW LOAN SERVICING, LLC 7 6.07% $9,775
    ENDEAVOR CAPITAL, LLC. 6 6.56% $8,479
    AMERICAN FINANCIAL NETWORK, INC. 6 7.12% $7,503
    AMERISAVE MORTGAGE CORPORATION 6 6.23% $10,340
    CMG MORTGAGE, INC. 5 7.73% $10,583
    CARDINAL FINANCIAL 5 7.05% $8,845
    POLARIS HOME FUNDING CORP. 5 7.10% $12,210
    First Federal Bank of the Midwest 5 5.93% $7,402
    HOWARD HANNA FINANCIAL SERVICES, INC. 4 6.53% $8,930
    Mortgage Research Center, LLC 4 7.00% $4,939
    GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 4 6.90% $11,178
    Equity Prime Mortgage LLC 4 6.56% $10,965
    The Genoa Banking Company 4 6.59% $7,549
    First Federal Savings and Loan Association of Lakewood 4 6.68% $10,032
    HOMESIDE FINANCIAL, LLC 3 7.25% $7,554
    TOP FLITE FINANCIAL, INC. 3 6.92% $13,496
    LIBERTY HOME MORTGAGE CORPORATION 3 7.21% $10,645
    MOVEMENT MORTGAGE, LLC 3 6.54% $9,006
    MORTGAGE SOLUTIONS OF COLORADO, LLC 3 7.17% $17,010
    RELIANCE FIRST CAPITAL, LLC 3 6.83% $9,786
    EVERETT FINANCIAL, INC. 3 6.42% $10,677
    GENEVA FINANCIAL, LLC 3 7.75% $9,594
    MICHIGAN MUTUAL, INC. 3 7.17% $6,622
    MEMBER FIRST MORTGAGE, LLC 3 6.71% $6,222
    ZILLOW HOME LOANS, LLC 2 7.13% $13,102
    AMERICAN FINANCING CORPORATION 2 7.00% $9,126
    Barrington Bank & Trust Company, N.A. 2 6.50% $5,372
    CALIBER HOME LOANS, INC. 2 6.75% $9,501
    Century Mortgage Company DBA Century Lending Company 2 7.19% $8,760
    DAS Acquisition Company, LLC 2 7.13% $10,329
    JPMorgan Chase Bank 2 7.81% $4,395
    LOANPAL, LLC 2 6.19% $9,824
    Nations Lending Corporation 2 7.19% $4,878
    PLAZA HOME MORTGAGE, INC. 2 7.25% $6,222
    RAPID MORTGAGE COMPANY 2 7.13% $11,790
    ROYAL UNITED MORTGAGE LLC 2 6.50% $6,011
    LAKE MICHIGAN CREDIT UNION 1 6.50% $7,426
    Ixonia Bank 1 5.99% $9,413
    M&T Bank 1 6.63% $9,398
    HOMEBRIDGE FINANCIAL SERVICES, INC. 1 6.38% $4,683
    MYCUMORTGAGE, LLC 1 6.13% $9,349
    NATIONS DIRECT MORTGAGE, LLC 1 7.63% $6,330
    VILLAGE CAPITAL MORTGAGE 1 7.50% $13,698
    NATIONS RELIABLE LENDING, LLC 1 6.75% $11,564
    GSF Mortgage Corporation 1 5.63% $4,974
    First Savings Bank 1 6.75% $7,925
    Northpointe Bank 1 7.25% $8,477
    NORWICH COMMERCIAL GROUP, INC. 1 6.13% $3,050
    Paramount Residential Mortgage Group, Inc. 1 6.75% $7,855
    First Merchants Bank 1 7.25% $10,221
    PHH Mortgage Corporation 1 6.99% $10,258
    Plains Commerce Bank 1 6.63% $7,908
    PLANET HOME LENDING, LLC 1 6.38% $12,154
    Platinum Home Mortgage Corporation 1 6.25% $21,480
    Wells Fargo Bank 1 6.63% $7,663
    PNC Bank 1 6.75% $3,201
    First Federal Bank 1 6.63% $8,697
    FIRST COMMUNITY MORTGAGE, INC. 1 6.75% $11,900
    First-Citizens Bank & Trust Company 1 7.38% $11,892
    YOUR HOME FINANCIAL LLC 1 7.13% $10,649
    FIRST CENTENNIAL MORTGAGE CORPORATION 1 6.63% $9,890
    ROSS MORTGAGE CORPORATION 1 6.88% $11,611
    1st National Bank 1 6.25% $10,964
    Civista Bank 1 6.62% $8,447
    T2 FINANCIAL LLC 1 7.00% $7,171
    The Federal Savings Bank 1 5.75% $12,653
    CHURCHILL MORTGAGE CORPORATION 1 5.99% $6,892
    AmRes Corporation 1 7.13% $8,202
    The Loan Store, Inc. 1 7.13% $18,358
    The Union Bank Company 1 6.50% $6,986
    THRIVE MORTGAGE, LLC 1 6.25% $8,422
    AMERICAN PACIFIC MORTGAGE CORPORATION 1 6.63% $9,043
    TOWNE MORTGAGE COMPANY 1 6.25% $8,162
    TruHome Solutions, LLC 1 5.88% $15,232
    UNION CAPITAL MORTGAGE CORPORATION 1 7.00% $7,660
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 1 5.75% $7,075
    AMERICAN FINANCIAL RESOURCES, INC. 1 7.75% $18,426
    U.S. Bank 1 5.25% $13,093
    ABSOLUTE HOME MORTGAGE CORPORATION 1 7.63% $8,497
    MORTGAGE 1 INCORPORATED 1 7.00% $10,029
    MORTGAGE ACCESS CORP. 1 7.13% $8,940
    Magnolia Bank 1 6.63% $6,236
    Lakeview Community Capital, LLC 1 6.25% $8,446

    The top Toledo FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 197 FHA loans originated. Their average total fees are $8,665, which is $1,438 higher than the next largest lender, The Huntington National Bank.

    The lowest fee Toledo FHA lenders (with over 10 loans originated) are MID AMERICA MORTGAGE, INC. ($4,673), Fifth Third Bank ($5,164), RUOFF MORTGAGE COMPANY, INC. ($6,110), Citizens Bank ($6,185) and ARK-LA-TEX FINANCIAL SERVICES, LLC. ($6,219).

    The lowest rate Toledo FHA lenders (with over 10 loans originated) are Mr. Cooper ( Nationstar Mortgage ) (6.12%), KeyBank (6.17%), Citizens Bank (6.31%), QUICKEN LOANS, LLC (6.38%) and UNITED WHOLESALE MORTGAGE, LLC (6.52%).

    Toledo FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    TOLEDO, OH FULTON 2022 $420,680 $538,650 $651,050 $809,150
    TOLEDO, OH LUCAS 2022 $420,680 $538,650 $651,050 $809,150
    TOLEDO, OH OTTAWA 2022 $420,680 $538,650 $651,050 $809,150
    TOLEDO, OH WOOD 2022 $420,680 $538,650 $651,050 $809,150
    TOLEDO, OH FULTON 2023 $472,030 $604,400 $730,525 $907,900
    TOLEDO, OH LUCAS 2023 $472,030 $604,400 $730,525 $907,900
    TOLEDO, OH OTTAWA 2023 $472,030 $604,400 $730,525 $907,900
    TOLEDO, OH WOOD 2023 $472,030 $604,400 $730,525 $907,900

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Toledo (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 $119,900 (-4.0%) $178,730 (2.6%) 0.48 1,667
    2018-02-01 $119,900 (-4.0%) $183,222 (1.8%) 0.49 1,546
    2018-03-01 $129,900 (0.8%) $194,785 (6.0%) 0.51 1,479
    2018-04-01 $139,450 (7.4%) $207,536 (11.0%) 0.53 1,467
    2018-05-01 $146,450 (11.5%) $213,191 (9.4%) 0.55 1,472
    2018-06-01 $149,900 (14.5%) $210,697 (6.1%) 0.55 1,609
    2018-07-01 $149,900 (15.4%) $209,278 (5.1%) 0.56 1,761
    2018-08-01 $139,900 (7.7%) $201,802 (4.5%) 0.52 1,875
    2018-09-01 $139,900 (7.7%) $196,091 (2.1%) 0.50 1,883
    2018-10-01 $139,900 (6.8%) $193,791 (1.9%) 0.51 1,919
    2018-11-01 $139,400 (10.2%) $193,433 (3.7%) 0.51 1,815
    2018-12-01 $137,900 (12.2%) $192,627 (6.3%) 0.50 1,704
    2019-01-01 $136,750 (14.1%) $195,080 (9.2%) 0.52 1,495
    2019-02-01 $137,400 (14.6%) $199,615 (9.0%) 0.51 1,400
    2019-03-01 $152,371 (17.3%) $211,964 (8.8%) 0.55 1,346
    2019-04-01 $166,921 (19.7%) $220,239 (6.1%) 0.57 1,341
    2019-05-01 $173,700 (18.6%) $225,843 (5.9%) 0.61 1,346
    2019-06-01 $174,900 (16.7%) $226,532 (7.5%) 0.61 1,351
    2019-07-01 $169,900 (13.3%) $221,029 (5.6%) 0.58 1,464
    2019-08-01 $166,927 (19.3%) $219,048 (8.6%) 0.57 1,518
    2019-09-01 $162,468 (16.1%) $215,037 (9.7%) 0.56 1,556
    2019-10-01 $158,000 (12.9%) $212,231 (9.5%) 0.55 1,588
    2019-11-01 $154,900 (11.1%) $207,045 (7.0%) 0.54 1,591
    2019-12-01 $153,450 (11.3%) $206,062 (7.0%) 0.53 1,498
    2020-01-01 $153,675 (12.4%) $208,010 (6.6%) 0.54 1,358
    2020-02-01 $154,900 (12.7%) $210,048 (5.2%) 0.54 1,274
    2020-03-01 $157,450 (3.3%) $214,444 (1.2%) 0.53 1,230
    2020-04-01 $168,075 (0.7%) $219,208 (-0.5%) 0.57 1,212
    2020-05-01 $178,950 (3.0%) $232,054 (2.8%) 0.60 1,122
    2020-06-01 $184,900 (5.7%) $243,917 (7.7%) 0.60 1,002
    2020-07-01 $193,875 (14.1%) $245,693 (11.2%) 0.61 978
    2020-08-01 $189,900 (13.8%) $246,997 (12.8%) 0.62 943
    2020-09-01 $181,050 (11.4%) $237,536 (10.5%) 0.58 927
    2020-10-01 $179,900 (13.9%) $234,244 (10.4%) 0.54 975
    2020-11-01 $167,400 (8.1%) $230,054 (11.1%) 0.53 895
    2020-12-01 $165,950 (8.2%) $224,278 (8.8%) 0.53 770
    2021-01-01 $169,900 (10.6%) $230,995 (11.1%) 0.54 667
    2021-02-01 $185,000 (19.4%) $245,152 (16.7%) 0.57 549
    2021-03-01 $182,400 (15.9%) $241,935 (12.8%) 0.54 546
    2021-04-01 $172,000 (2.3%) $235,478 (7.4%) 0.50 573
    2021-05-01 $179,900 (0.5%) $234,506 (1.1%) 0.50 608
    2021-06-01 $175,000 (-5.4%) $234,145 (-4.0%) 0.49 679
    2021-07-01 $179,900 (-7.2%) $233,618 (-4.9%) 0.49 790
    2021-08-01 $169,450 (-10.8%) $232,845 (-5.7%) 0.48 908
    2021-09-01 $159,900 (-11.7%) $222,551 (-6.3%) 0.45 966
    2021-10-01 $154,950 (-13.9%) $219,253 (-6.4%) 0.44 930
    2021-11-01 $149,450 (-10.7%) $215,412 (-6.4%) 0.43 834
    2021-12-01 $144,950 (-12.7%) $210,892 (-6.0%) 0.41 688
    2022-01-01 $135,000 (-20.5%) $207,661 (-10.1%) 0.41 571
    2022-02-01 $134,925 (-27.1%) $205,812 (-16.1%) 0.40 452
    2022-03-01 $153,325 (-15.9%) $225,372 (-6.9%) 0.42 442
    2022-04-01 $163,700 (-4.8%) $225,517 (-4.2%) 0.43 517
    2022-05-01 $168,450 (-6.4%) $227,921 (-2.8%) 0.42 639
    2022-06-01 $169,950 (-2.9%) $230,565 (-1.5%) 0.42 785
    2022-07-01 $169,900 (-5.6%) $234,021 (0.2%) 0.42 869
    2022-08-01 $165,825 (-2.1%) $232,122 (-0.3%) 0.42 911
    2022-09-01 $167,425 (4.7%) $226,656 (1.8%) 0.42 912
    2022-10-01 $154,900 (0.0%) $218,538 (-0.3%) 0.40 947
    2022-11-01 $149,900 (0.3%) $211,349 (-1.9%) 0.39 915
    2022-12-01 $149,900 (3.4%) $210,295 (-0.3%) 0.41 785
    2023-01-01 $162,400 (20.3%) $220,856 (6.4%) 0.43 671
    2023-02-01 $173,700 (28.7%) $233,627 (13.5%) 0.46 587
    2023-03-01 $174,950 (14.1%) $236,211 (4.8%) 0.49 575
    2023-04-01 $185,450 (13.3%) $245,178 (8.7%) 0.50 604
    2023-05-01 $204,900 (21.6%) $251,245 (10.2%) 0.52 665
    2023-06-01 $212,400 (25.0%) $254,555 (10.4%) 0.54 711
    2023-07-01 $200,000 (17.7%) $255,153 (9.0%) 0.55 672
    2023-08-01 $199,900 (20.6%) $256,476 (10.5%) 0.54 710
    2023-09-01 $189,900 (13.4%) $244,894 (8.1%) 0.51 780
    2023-10-01 $187,400 (21.0%) $241,815 (10.7%) 0.48 843
    2023-11-01 $179,925 (20.0%) $235,506 (11.4%) 0.48 802
    2023-12-01 $174,900 (16.7%) $232,960 (10.8%) 0.49 759
    2024-01-01 $169,925 (4.6%) $232,871 (5.4%) 0.46 711
    2024-02-01 $182,400 (5.0%) $245,848 (5.2%) 0.51 618
    2024-03-01 $199,900 (14.3%) $259,851 (10.0%) 0.54 601
    2024-04-01 $209,950 (13.2%) $270,188 (10.2%) 0.57 614
    2024-05-01 $231,950 (13.2%) $285,709 (13.7%) 0.62 696
    2024-06-01 $229,900 (8.2%) $284,679 (11.8%) 0.62 720
    2024-07-01 $239,950 (20.0%) $285,338 (11.8%) 0.60 759
    2024-08-01 $219,900 (10.0%) $268,943 (4.9%) 0.58 853
    2024-09-01 $214,950 (13.2%) $272,912 (11.4%) 0.56 882
    2024-10-01 $219,088 (16.9%) $273,846 (13.3%) 0.58 841
    2024-11-01 $219,900 (22.2%) $279,811 (18.8%) 0.59 843
    2024-12-01 $220,000 (25.8%) $282,698 (21.4%) 0.60 766
    2025-01-01 $219,950 (29.4%) $281,494 (20.9%) 0.00 733
    Toledo's median listing price for 2025-01-01 was $219,950, a difference of $50,025 (29.4%) versus the prior year and $-50 versus the prior month.

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

    Toledo's average listing price for 2025-01-01 was $281,494, a difference of $48,623 (20.9%) versus the prior year and $-1,204 versus the prior month.

    For the 2025-01-01 period, Toledo had 733 MLS listings, a difference of -33 listings (-4%) versus the prior month and 22 listings (3%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Toledo (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 85 days 1,499 sqft
    2018-02-01 82 days 1,497 sqft
    2018-03-01 62 days 1,548 sqft
    2018-04-01 52 days 1,577 sqft
    2018-05-01 52 days 1,623 sqft
    2018-06-01 48 days 1,663 sqft
    2018-07-01 48 days 1,666 sqft
    2018-08-01 49 days 1,629 sqft
    2018-09-01 54 days 1,620 sqft
    2018-10-01 60 days 1,626 sqft
    2018-11-01 63 days 1,591 sqft
    2018-12-01 72 days 1,568 sqft
    2019-01-01 81 days 1,576 sqft
    2019-02-01 79 days 1,565 sqft
    2019-03-01 68 days 1,611 sqft
    2019-04-01 52 days 1,662 sqft
    2019-05-01 48 days 1,730 sqft
    2019-06-01 50 days 1,738 sqft
    2019-07-01 50 days 1,742 sqft
    2019-08-01 53 days 1,736 sqft
    2019-09-01 55 days 1,717 sqft
    2019-10-01 57 days 1,704 sqft
    2019-11-01 58 days 1,690 sqft
    2019-12-01 66 days 1,649 sqft
    2020-01-01 76 days 1,648 sqft
    2020-02-01 72 days 1,644 sqft
    2020-03-01 58 days 1,658 sqft
    2020-04-01 62 days 1,682 sqft
    2020-05-01 64 days 1,708 sqft
    2020-06-01 46 days 1,747 sqft
    2020-07-01 40 days 1,781 sqft
    2020-08-01 45 days 1,750 sqft
    2020-09-01 40 days 1,713 sqft
    2020-10-01 40 days 1,691 sqft
    2020-11-01 45 days 1,620 sqft
    2020-12-01 56 days 1,625 sqft
    2021-01-01 63 days 1,630 sqft
    2021-02-01 47 days 1,655 sqft
    2021-03-01 35 days 1,646 sqft
    2021-04-01 28 days 1,629 sqft
    2021-05-01 27 days 1,621 sqft
    2021-06-01 28 days 1,593 sqft
    2021-07-01 30 days 1,592 sqft
    2021-08-01 30 days 1,583 sqft
    2021-09-01 35 days 1,565 sqft
    2021-10-01 42 days 1,556 sqft
    2021-11-01 45 days 1,517 sqft
    2021-12-01 53 days 1,511 sqft
    2022-01-01 58 days 1,485 sqft
    2022-02-01 42 days 1,448 sqft
    2022-03-01 31 days 1,482 sqft
    2022-04-01 24 days 1,500 sqft
    2022-05-01 24 days 1,498 sqft
    2022-06-01 25 days 1,512 sqft
    2022-07-01 34 days 1,528 sqft
    2022-08-01 35 days 1,528 sqft
    2022-09-01 41 days 1,514 sqft
    2022-10-01 40 days 1,500 sqft
    2022-11-01 44 days 1,496 sqft
    2022-12-01 54 days 1,484 sqft
    2023-01-01 62 days 1,510 sqft
    2023-02-01 47 days 1,534 sqft
    2023-03-01 36 days 1,524 sqft
    2023-04-01 37 days 1,539 sqft
    2023-05-01 31 days 1,567 sqft
    2023-06-01 35 days 1,595 sqft
    2023-07-01 38 days 1,589 sqft
    2023-08-01 37 days 1,630 sqft
    2023-09-01 37 days 1,593 sqft
    2023-10-01 39 days 1,552 sqft
    2023-11-01 43 days 1,527 sqft
    2023-12-01 53 days 1,528 sqft
    2024-01-01 53 days 1,517 sqft
    2024-02-01 42 days 1,535 sqft
    2024-03-01 37 days 1,550 sqft
    2024-04-01 37 days 1,583 sqft
    2024-05-01 28 days 1,635 sqft
    2024-06-01 31 days 1,652 sqft
    2024-07-01 37 days 1,652 sqft
    2024-08-01 35 days 1,612 sqft
    2024-09-01 37 days 1,602 sqft
    2024-10-01 43 days 1,603 sqft
    2024-11-01 45 days 1,595 sqft
    2024-12-01 50 days 1,610 sqft
    2025-01-01 0 days 1,611 sqft
    Toledo'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.

    Toledo's median square footage for active listings during the 2025-01-01 period was 1,611 sqft. One year prior, the average listing was 1,517 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).