Trenton FHA Loan Rates, Closing Costs & Stats

TRENTON-PRINCETON, NJ

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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.

    Trenton's 105 lenders originated 582 FHA loans during 2024. The total origination value was $194,960,000, with an average FHA loan value of $334,983.

    Trenton FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Trenton averaged 6.98% for the week of 2025-05-23, compared to the national average (all FHA variants) of 6.612% for the same period.

    Trenton's average FHA mortgage closing costs are $9,334.

    The average rate for the prior week (2025-05-16) was 6.71% and one month ago for the week of 2025-04-18, the average rate was 6.73%.

    The average rate one year ago was 7.11%.

    For refis of the same type during the week of 2025-05-23, the average rate was 7.04%.

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

    Trenton 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 Trenton level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    QUICKEN LOANS, LLC 62 6.33% $12,043
    CROSSCOUNTRY MORTGAGE, LLC 31 6.55% $12,201
    UNITED WHOLESALE MORTGAGE, LLC 30 6.10% $14,359
    PENNYMAC LOAN SERVICES, LLC 19 6.02% $12,867
    FREEDOM MORTGAGE CORPORATION 17 6.59% $15,928
    MLD MORTGAGE INC. 17 6.59% $11,441
    ABSOLUTE HOME MORTGAGE CORPORATION 16 6.73% $14,666
    CMG MORTGAGE, INC. 16 6.80% $14,280
    LOANDEPOT.COM, LLC 15 6.35% $12,733
    ALLIED MORTGAGE GROUP, INC. 15 6.13% $12,343
    Advisors Mortgage Group, L.L.C. 13 6.37% $12,115
    MUTUAL OF OMAHA MORTGAGE, INC. 11 6.33% $17,220
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 10 6.42% $17,797
    East Coast Capital Corp. 10 6.66% $12,516
    Paramount Residential Mortgage Group, Inc. 10 6.74% $13,690
    Prosperity Home Mortgage, LLC 9 6.26% $12,796
    NEWREZ LLC 8 6.28% $12,564
    GREENTREE MORTGAGE COMPANY, L.P. 8 6.70% $11,799
    Carrington Mortgage Services, LLC 8 6.89% $14,962
    Mr. Cooper ( Nationstar Mortgage ) 7 6.71% $15,665
    BROKER SOLUTIONS, INC. 7 6.64% $11,660
    AMERISAVE MORTGAGE CORPORATION 7 6.39% $14,107
    Acre Mortgage and Financial Inc 5 6.95% $11,607
    PLANET HOME LENDING, LLC 5 6.25% $11,133
    NATION ONE MORTGAGE CORPORATION 5 6.80% $17,178
    M&T Bank 5 6.05% $10,769
    Keystone Funding, Inc. 5 6.38% $16,143
    BOND STREET MORTGAGE, LLC 5 6.27% $13,228
    Equity Prime Mortgage LLC 4 6.66% $21,940
    NATIONWIDE MORTGAGE BANKERS, INC. 4 6.84% $16,364
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 4 6.28% $12,883
    NJ LENDERS CORP. 4 6.44% $12,279
    UNION HOME MORTGAGE CORP. 4 6.44% $17,266
    Meridian Bank Corporation 4 6.25% $13,888
    GUARANTEED RATE, INC. 4 6.25% $14,078
    JERSEY MORTGAGE COMPANY OF NEW JERSEY, INC. 3 7.38% $13,071
    LIBERTY HOME MORTGAGE CORPORATION 3 6.83% $20,588
    SUCCESS MORTGAGE PARTNERS, INC. 3 6.21% $15,194
    MOVEMENT MORTGAGE, LLC 3 6.46% $17,201
    MLB RESIDENTIAL LENDING, LLC 3 7.17% $17,221
    CONTOUR MORTGAGE CORPORATION 3 6.58% $22,434
    EMM LOANS LLC 3 6.63% $13,031
    Wells Fargo Bank 3 6.42% $10,736
    VILLAGE CAPITAL MORTGAGE 3 6.79% $8,598
    FM Home Loans, LLC 3 6.92% $9,495
    NFM, INC. 3 7.08% $18,612
    HOMEBRIDGE FINANCIAL SERVICES, INC. 3 7.17% $7,041
    EMBRACE HOME LOANS, INC. 2 6.63% $9,233
    BAY EQUITY LLC 2 6.44% $12,612
    CARDINAL FINANCIAL 2 7.00% $18,467
    Cornerstone First Mortgage, Inc 2 6.69% $10,861
    DEVELOPER'S MORTGAGE COMPANY 2 6.81% $13,267
    EVERETT FINANCIAL, INC. 2 6.44% $14,196
    FIRST ALLIANCE HOME MORTGAGE, LLC 2 6.00% $14,641
    First Citizens Community Bank 2 6.75% $9,591
    Flagstar Bank, FSB 2 5.94% $12,133
    Gateway First Bank 2 6.44% $12,054
    Ixonia Bank 2 6.88% $23,624
    JMAC LENDING, INC. 2 6.81% $20,445
    LOANPAL, LLC 2 5.19% $13,611
    MORTGAGE SOLUTIONS OF COLORADO, LLC 2 7.13% $14,139
    NATIONS DIRECT MORTGAGE, LLC 2 6.44% $13,683
    OCMBC, INC. 2 6.94% $9,893
    PNC Bank 2 6.69% $9,004
    TD Bank 2 6.50% $8,673
    The Federal Savings Bank 2 6.56% $11,785
    TJC Mortgage, Inc. 2 6.44% $14,941
    UNITED MORTGAGE CORP 2 6.94% $20,569
    Nations Lending Corporation 1 7.25% $9,916
    Home Mortgage Alliance Corp 1 5.75% $24,160
    NETWORK CAPITAL FUNDING CORPORATION 1 6.00% $23,922
    GUARANTEED RATE AFFINITY, LLC 1 6.63% $18,485
    Fulton Bank 1 6.00% $6,007
    FIRST HERITAGE FINANCIAL, LLC 1 6.00% $7,018
    American Mortgage & Equity Consultants, Inc. 1 7.13% $9,372
    PANORAMA MORTGAGE GROUP, LLC 1 6.75% $16,614
    Fifth Third Bank 1 6.50% $5,683
    1st Colonial Community Bank 1 6.63% $10,278
    PENTAGON FEDERAL CREDIT UNION 1 6.63% $10,277
    PHH Mortgage Corporation 1 7.13% $12,263
    PINNACLE MORTGAGE, INC. 1 6.75% $11,822
    Commerce Home Mortgage, Inc. 1 6.13% $9,953
    PLAZA HOME MORTGAGE, INC. 1 7.25% $16,547
    US MORTGAGE CORPORATION 1 7.88% $13,445
    PRIMELENDING, A PLAINSCAPITAL COMPANY 1 6.25% $12,013
    Princeton Mortgage Corporation 1 6.63% $12,535
    CLIFFCO, INC. 1 6.63% $11,136
    Provident Bank 1 6.63% $15,274
    Century Mortgage Company DBA Century Lending Company 1 6.25% $11,884
    ROYAL UNITED MORTGAGE LLC 1 5.88% $6,536
    Servion, Inc. 1 6.63% $10,861
    BETTER MORTGAGE CORPORATION 1 5.75% $15,180
    T2 FINANCIAL LLC 1 7.00% $14,244
    VERITAS FUNDING, LLC 1 6.75% $13,737
    AMERICAN FINANCIAL RESOURCES, INC. 1 6.50% $14,781
    The Loan Store, Inc. 1 7.50% $13,667
    AMERICAN FINANCIAL NETWORK, INC. 1 6.75% $16,205
    MORTGAGE ACCESS CORP. 1 7.13% $9,717
    Bank of America 1 7.38% $5,911
    Mid Penn Bank 1 6.49% $11,433
    LOANLEADERS OF AMERICA, INC. 1 5.25% $13,667
    Lakeview Community Capital, LLC 1 6.75% $9,877
    LADERA LENDING, INC. 1 5.99% $13,725
    JPMorgan Chase Bank 1 7.13% $5,235
    ZILLOW HOME LOANS, LLC 1 7.00% $15,484

    The top Trenton FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 62 FHA loans originated. Their average total fees are $12,043, which is $157 lower than the next largest lender, CROSSCOUNTRY MORTGAGE, LLC.

    The lowest fee Trenton FHA lenders (with over 10 loans originated) are MLD MORTGAGE INC. ($11,441), QUICKEN LOANS, LLC ($12,043), Advisors Mortgage Group, L.L.C. ($12,115), CROSSCOUNTRY MORTGAGE, LLC ($12,201) and ALLIED MORTGAGE GROUP, INC. ($12,343).

    The lowest rate Trenton FHA lenders (with over 10 loans originated) are PENNYMAC LOAN SERVICES, LLC (6.02%), UNITED WHOLESALE MORTGAGE, LLC (6.10%), ALLIED MORTGAGE GROUP, INC. (6.13%), QUICKEN LOANS, LLC (6.33%) and MUTUAL OF OMAHA MORTGAGE, INC. (6.33%).

    Trenton FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    TRENTON-PRINCETON, NJ MERCER 2022 $420,680 $538,650 $651,050 $809,150
    TRENTON-PRINCETON, NJ MERCER 2023 $472,030 $604,400 $730,525 $907,900

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Trenton (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 $227,175 (4.7%) $382,058 (-4.5%) 0.84 1,156
    2018-02-01 $228,550 (1.6%) $386,625 (-2.7%) 0.83 1,205
    2018-03-01 $255,000 (11.1%) $424,270 (0.3%) 0.89 1,192
    2018-04-01 $274,250 (5.9%) $475,863 (5.0%) 0.93 1,313
    2018-05-01 $301,200 (11.6%) $504,014 (6.6%) 1.01 1,398
    2018-06-01 $299,999 (9.1%) $495,719 (2.0%) 1.00 1,484
    2018-07-01 $304,450 (8.9%) $487,408 (0.5%) 1.02 1,515
    2018-08-01 $299,000 (10.9%) $483,118 (4.0%) 1.00 1,496
    2018-09-01 $289,950 (10.9%) $469,656 (2.4%) 0.97 1,508
    2018-10-01 $289,000 (13.4%) $467,512 (3.6%) 0.98 1,481
    2018-11-01 $284,500 (16.1%) $472,547 (11.4%) 0.96 1,411
    2018-12-01 $270,450 (17.6%) $448,552 (9.0%) 0.93 1,246
    2019-01-01 $267,000 (17.5%) $443,245 (16.0%) 0.92 1,136
    2019-02-01 $282,100 (23.4%) $467,039 (20.8%) 0.95 1,142
    2019-03-01 $306,143 (20.1%) $491,375 (15.8%) 1.00 1,224
    2019-04-01 $329,450 (20.1%) $525,647 (10.5%) 1.05 1,306
    2019-05-01 $349,900 (16.2%) $549,328 (9.0%) 1.09 1,381
    2019-06-01 $359,000 (19.7%) $556,498 (12.3%) 1.12 1,366
    2019-07-01 $352,394 (15.8%) $543,541 (11.5%) 1.10 1,376
    2019-08-01 $349,245 (16.8%) $535,612 (10.9%) 1.11 1,320
    2019-09-01 $349,614 (20.6%) $535,777 (14.1%) 1.12 1,238
    2019-10-01 $349,859 (21.1%) $535,887 (14.6%) 1.13 1,185
    2019-11-01 $330,000 (16.0%) $529,155 (12.0%) 1.08 1,129
    2019-12-01 $327,000 (20.9%) $530,701 (18.3%) 1.09 929
    2020-01-01 $320,725 (20.1%) $529,696 (19.5%) 1.07 829
    2020-02-01 $339,900 (20.5%) $548,508 (17.4%) 1.11 854
    2020-03-01 $370,550 (21.0%) $593,569 (20.8%) 1.16 902
    2020-04-01 $361,000 (9.6%) $581,581 (10.6%) 1.13 803
    2020-05-01 $385,000 (10.0%) $581,959 (5.9%) 1.17 791
    2020-06-01 $406,970 (13.4%) $597,505 (7.4%) 1.20 811
    2020-07-01 $403,723 (14.6%) $625,994 (15.2%) 1.17 765
    2020-08-01 $409,000 (17.1%) $638,713 (19.3%) 1.17 689
    2020-09-01 $422,450 (20.8%) $656,897 (22.6%) 1.21 652
    2020-10-01 $410,000 (17.2%) $649,449 (21.2%) 1.17 621
    2020-11-01 $385,725 (16.9%) $632,720 (19.6%) 1.13 581
    2020-12-01 $389,748 (19.2%) $635,056 (19.7%) 1.16 502
    2021-01-01 $371,250 (15.8%) $613,125 (15.8%) 1.11 392
    2021-02-01 $377,000 (10.9%) $718,218 (30.9%) 1.10 328
    2021-03-01 $399,450 (7.8%) $724,112 (22.0%) 1.13 370
    2021-04-01 $389,225 (7.8%) $710,502 (22.2%) 1.05 391
    2021-05-01 $399,900 (3.9%) $686,924 (18.0%) 1.06 474
    2021-06-01 $355,200 (-12.7%) $609,571 (2.0%) 0.94 610
    2021-07-01 $350,000 (-13.3%) $576,887 (-7.8%) 0.92 697
    2021-08-01 $354,900 (-13.2%) $580,077 (-9.2%) 0.95 662
    2021-09-01 $355,950 (-15.7%) $594,873 (-9.4%) 0.95 625
    2021-10-01 $339,000 (-17.3%) $580,945 (-10.6%) 0.90 601
    2021-11-01 $327,500 (-15.1%) $582,731 (-7.9%) 0.88 509
    2021-12-01 $294,200 (-24.5%) $554,034 (-12.8%) 0.80 413
    2022-01-01 $275,000 (-25.9%) $549,949 (-10.3%) 0.74 322
    2022-02-01 $284,975 (-24.4%) $610,949 (-14.9%) 0.74 339
    2022-03-01 $307,475 (-23.0%) $625,471 (-13.6%) 0.77 365
    2022-04-01 $329,450 (-15.4%) $680,449 (-4.2%) 0.79 396
    2022-05-01 $372,000 (-7.0%) $702,000 (2.2%) 0.85 499
    2022-06-01 $377,500 (6.3%) $686,923 (12.7%) 0.84 527
    2022-07-01 $374,950 (7.1%) $647,359 (12.2%) 0.84 574
    2022-08-01 $388,775 (9.5%) $644,129 (11.0%) 0.90 583
    2022-09-01 $375,225 (5.4%) $633,640 (6.5%) 0.88 523
    2022-10-01 $378,000 (11.5%) $657,068 (13.1%) 0.89 516
    2022-11-01 $374,950 (14.5%) $625,281 (7.3%) 0.90 517
    2022-12-01 $359,000 (22.0%) $603,448 (8.9%) 0.89 424
    2023-01-01 $369,950 (34.5%) $611,320 (11.2%) 0.92 366
    2023-02-01 $374,850 (31.5%) $659,532 (8.0%) 0.90 339
    2023-03-01 $387,000 (25.9%) $686,810 (9.8%) 0.91 332
    2023-04-01 $419,999 (27.5%) $757,033 (11.3%) 0.98 323
    2023-05-01 $460,975 (23.9%) $787,754 (12.2%) 1.05 322
    2023-06-01 $495,500 (31.3%) $822,369 (19.7%) 1.11 350
    2023-07-01 $459,900 (22.7%) $824,094 (27.3%) 1.05 353
    2023-08-01 $444,950 (14.5%) $798,416 (24.0%) 1.02 376
    2023-09-01 $420,000 (11.9%) $772,047 (21.8%) 0.98 381
    2023-10-01 $427,450 (13.1%) $737,658 (12.3%) 1.01 409
    2023-11-01 $394,672 (5.3%) $696,490 (11.4%) 0.94 380
    2023-12-01 $380,000 (5.9%) $611,222 (1.3%) 0.93 323
    2024-01-01 $392,000 (6.0%) $618,403 (1.2%) 0.96 300
    2024-02-01 $384,500 (2.6%) $606,912 (-8.0%) 0.93 298
    2024-03-01 $399,900 (3.3%) $657,574 (-4.3%) 0.94 317
    2024-04-01 $447,475 (6.5%) $708,887 (-6.4%) 1.04 359
    2024-05-01 $453,250 (-1.7%) $766,700 (-2.7%) 1.03 397
    2024-06-01 $469,450 (-5.3%) $800,456 (-2.7%) 1.07 417
    2024-07-01 $460,000 (0.0%) $781,129 (-5.2%) 1.05 438
    2024-08-01 $450,000 (1.1%) $719,684 (-9.9%) 1.05 493
    2024-09-01 $461,000 (9.8%) $718,147 (-7.0%) 1.08 542
    2024-10-01 $471,475 (10.3%) $719,461 (-2.5%) 1.11 544
    2024-11-01 $449,900 (14.0%) $710,164 (2.0%) 1.08 521
    2024-12-01 $422,000 (11.1%) $697,345 (14.1%) 1.05 442
    2025-01-01 $417,000 (6.4%) $690,891 (11.7%) 1.04 414
    2025-02-01 $432,000 (12.4%) $703,347 (15.9%) 1.05 408
    2025-03-01 $450,000 (12.5%) $723,244 (10.0%) 1.06 497
    2025-04-01 $465,000 (3.9%) $772,108 (8.9%) 1.08 536
    Trenton's median listing price for 2025-04-01 was $465,000, a difference of $17,525 (3.9%) versus the prior year and $15,000 versus the prior month.

    Trenton's median listing price comes in at 108% of the national average.

    Trenton's average listing price for 2025-04-01 was $772,108, a difference of $63,221 (8.9%) versus the prior year and $48,864 versus the prior month.

    For the 2025-04-01 period, Trenton had 536 MLS listings, a difference of 39 listings (8%) versus the prior month and 177 listings (49%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Trenton (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 88 days 1,556 sqft
    2018-02-01 78 days 1,564 sqft
    2018-03-01 58 days 1,620 sqft
    2018-04-01 47 days 1,673 sqft
    2018-05-01 46 days 1,738 sqft
    2018-06-01 51 days 1,745 sqft
    2018-07-01 60 days 1,746 sqft
    2018-08-01 63 days 1,750 sqft
    2018-09-01 68 days 1,708 sqft
    2018-10-01 67 days 1,719 sqft
    2018-11-01 67 days 1,719 sqft
    2018-12-01 76 days 1,656 sqft
    2019-01-01 81 days 1,660 sqft
    2019-02-01 72 days 1,705 sqft
    2019-03-01 52 days 1,761 sqft
    2019-04-01 44 days 1,822 sqft
    2019-05-01 45 days 1,893 sqft
    2019-06-01 55 days 1,903 sqft
    2019-07-01 59 days 1,886 sqft
    2019-08-01 61 days 1,885 sqft
    2019-09-01 65 days 1,886 sqft
    2019-10-01 68 days 1,879 sqft
    2019-11-01 71 days 1,844 sqft
    2019-12-01 83 days 1,811 sqft
    2020-01-01 87 days 1,817 sqft
    2020-02-01 68 days 1,895 sqft
    2020-03-01 43 days 1,958 sqft
    2020-04-01 58 days 1,942 sqft
    2020-05-01 74 days 1,978 sqft
    2020-06-01 61 days 2,027 sqft
    2020-07-01 46 days 1,990 sqft
    2020-08-01 44 days 1,942 sqft
    2020-09-01 43 days 1,987 sqft
    2020-10-01 48 days 1,960 sqft
    2020-11-01 50 days 1,894 sqft
    2020-12-01 60 days 1,902 sqft
    2021-01-01 64 days 1,864 sqft
    2021-02-01 55 days 1,815 sqft
    2021-03-01 24 days 1,821 sqft
    2021-04-01 24 days 1,807 sqft
    2021-05-01 26 days 1,820 sqft
    2021-06-01 30 days 1,656 sqft
    2021-07-01 33 days 1,643 sqft
    2021-08-01 43 days 1,641 sqft
    2021-09-01 48 days 1,634 sqft
    2021-10-01 42 days 1,621 sqft
    2021-11-01 48 days 1,583 sqft
    2021-12-01 63 days 1,518 sqft
    2022-01-01 58 days 1,499 sqft
    2022-02-01 40 days 1,495 sqft
    2022-03-01 33 days 1,525 sqft
    2022-04-01 26 days 1,578 sqft
    2022-05-01 30 days 1,654 sqft
    2022-06-01 33 days 1,702 sqft
    2022-07-01 36 days 1,663 sqft
    2022-08-01 40 days 1,661 sqft
    2022-09-01 48 days 1,680 sqft
    2022-10-01 55 days 1,651 sqft
    2022-11-01 56 days 1,685 sqft
    2022-12-01 64 days 1,657 sqft
    2023-01-01 74 days 1,700 sqft
    2023-02-01 55 days 1,682 sqft
    2023-03-01 37 days 1,691 sqft
    2023-04-01 37 days 1,678 sqft
    2023-05-01 32 days 1,697 sqft
    2023-06-01 30 days 1,818 sqft
    2023-07-01 33 days 1,789 sqft
    2023-08-01 31 days 1,705 sqft
    2023-09-01 33 days 1,666 sqft
    2023-10-01 36 days 1,720 sqft
    2023-11-01 42 days 1,604 sqft
    2023-12-01 46 days 1,574 sqft
    2024-01-01 51 days 1,585 sqft
    2024-02-01 36 days 1,573 sqft
    2024-03-01 33 days 1,687 sqft
    2024-04-01 25 days 1,722 sqft
    2024-05-01 27 days 1,700 sqft
    2024-06-01 33 days 1,764 sqft
    2024-07-01 40 days 1,741 sqft
    2024-08-01 34 days 1,721 sqft
    2024-09-01 36 days 1,704 sqft
    2024-10-01 41 days 1,725 sqft
    2024-11-01 48 days 1,641 sqft
    2024-12-01 52 days 1,550 sqft
    2025-01-01 60 days 1,542 sqft
    2025-02-01 52 days 1,564 sqft
    2025-03-01 29 days 1,650 sqft
    2025-04-01 31 days 1,686 sqft
    Trenton's median listing age (time on market) for 2025-04-01 was 31 days. This is 21% longer than the same period one year ago.

    Trenton's median square footage for active listings during the 2025-04-01 period was 1,686 sqft. One year prior, the average listing was 1,722 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).