Tucson FHA Loan Rates, Closing Costs & Stats

TUCSON, AZ

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.

Tucson's 139 lenders originated 3,351 FHA loans during 2023. The total origination value was $928,495,000, with an average FHA loan value of $277,080.

Tucson FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Tucson averaged 6.29% for the week of 2024-05-24, compared to the national average (all FHA variants) of 6.746% for the same period.

Tucson's average FHA mortgage closing costs are $7,724.

The average rate for the prior week (2024-05-17) was 6.49% and one month ago for the week of 2024-04-19, the average rate was 6.61%.

The average rate one year ago was 6.03%.

For refis of the same type during the week of 2024-05-24, the average rate was 6.7%.

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

Tucson 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 Tucson level.

Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
NOVA FINANCIAL & INVESTMENT CORPORATION 396 6.56% $8,280
CROSSCOUNTRY MORTGAGE, LLC 299 6.52% $11,977
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 208 6.72% $12,170
LOANDEPOT.COM, LLC 183 6.14% $12,922
QUICKEN LOANS, LLC 177 6.20% $11,842
UNITED WHOLESALE MORTGAGE, LLC 176 6.13% $13,309
ALTITUDE FINANCIAL CORPORATION 171 6.46% $8,208
GUILD MORTGAGE COMPANY 164 6.55% $13,034
V.I.P. MORTGAGE, INC. 131 6.60% $14,494
AMERICAN PACIFIC MORTGAGE CORPORATION 122 6.73% $12,669
EAGLE HOME MORTGAGE, LLC 84 4.91% $12,285
DHI MORTGAGE COMPANY, LTD. 83 5.30% $13,467
KBHS HOME LOANS, LLC 80 5.79% $15,676
MOVEMENT MORTGAGE, LLC 61 6.56% $15,125
Prosperity Home Mortgage, LLC 58 6.40% $12,004
HOMEAMERICAN MORTGAGE CORPORATION 49 5.47% $7,939
MORIA DEVELOPMENT, INC. 47 6.81% $12,817
PULTE MORTGAGE LLC 27 5.40% $7,242
Mr. Cooper ( Nationstar Mortgage ) 24 6.13% $14,727
GUARANTEED RATE AFFINITY, LLC 22 6.57% $12,305
FREEDOM MORTGAGE CORPORATION 22 6.72% $16,320
GENEVA FINANCIAL, LLC 22 6.95% $16,201
Equity Prime Mortgage LLC 22 7.18% $13,203
GUARANTEED RATE, INC. 22 6.55% $12,570
AMCAP MORTGAGE, LTD. 22 6.54% $13,938
BROKER SOLUTIONS, INC. 22 6.72% $12,196
NEWREZ LLC 21 6.31% $11,474
LOANPAL, LLC 20 5.69% $12,557
Flagstar Bank, FSB 20 6.70% $13,522
AMERISAVE MORTGAGE CORPORATION 17 5.88% $14,291
CARDINAL FINANCIAL 17 6.31% $13,184
PENNYMAC LOAN SERVICES, LLC 17 6.01% $14,525
Paramount Residential Mortgage Group, Inc. 17 6.37% $10,748
MATTAMY HOME FUNDING, LLC 15 5.28% $16,120
SUMMIT FUNDING, INC. 11 6.92% $12,588
SUN WEST MORTGAGE COMPANY, INC. 10 6.34% $13,726
MUTUAL OF OMAHA MORTGAGE, INC. 10 6.55% $13,078
AMERICAN FINANCIAL NETWORK, INC. 9 7.17% $13,983
Carrington Mortgage Services, LLC 9 6.38% $11,128
TruHome Solutions, LLC 8 5.84% $10,513
JPMorgan Chase Bank 8 6.37% $7,788
Wells Fargo Bank 8 6.77% $6,229
Lakeview Community Capital, LLC 7 5.86% $10,618
CALCON MUTUAL MORTGAGE LLC 7 6.50% $15,794
Plains Commerce Bank 7 6.13% $10,150
Nations Lending Corporation 6 6.63% $14,272
HOMEOWNERS FINANCIAL GROUP USA, LLC 5 6.83% $13,549
VILLAGE CAPITAL MORTGAGE 5 6.30% $7,240
EVERETT FINANCIAL, INC. 5 6.63% $16,220
TOP FLITE FINANCIAL, INC. 4 6.44% $15,989
AMERICAN FINANCIAL RESOURCES, INC. 4 6.97% $13,230
JMAC LENDING, INC. 4 6.81% $12,062
STARBOARD FINANCIAL MANAGEMENT, LLC 4 6.53% $13,105
DAS Acquisition Company, LLC 4 7.41% $12,971
BAY EQUITY LLC 4 6.72% $14,490
PHH Mortgage Corporation 3 6.33% $12,492
GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 3 5.83% $10,709
Lend Smart Mortgage, LLC 3 6.58% $6,954
EMM LOANS LLC 3 5.92% $12,910
ACADEMY MORTGAGE CORPORATION 3 7.50% $15,453
NETWORK CAPITAL FUNDING CORPORATION 3 6.17% $9,058
MANN FINANCIAL INC. 3 6.79% $16,145
PREMIER LENDING, INC. 3 6.08% $14,050
AmeriHome Mortgage Company, LLC 3 6.46% $11,279
MORTGAGE SOLUTIONS OF COLORADO, LLC 3 6.46% $10,938
PLANET HOME LENDING, LLC 3 5.83% $8,019
FIRST ALLIANCE HOME MORTGAGE, LLC 2 6.94% $16,119
NEW DAY FINANCIAL, LLC 2 7.13% $7,872
U.S. Bank 2 5.94% $12,563
VERITAS FUNDING, LLC 2 6.75% $15,637
UNION HOME MORTGAGE CORP. 2 6.25% $14,326
ZILLOW HOME LOANS, LLC 2 6.63% $12,814
INTELLILOAN, INC. 2 5.81% $7,236
SOVEREIGN LENDING GROUP INCORPORATED 2 5.31% $18,735
LADERA LENDING, INC. 2 6.25% $11,309
SECURITYNATIONAL MORTGAGE COMPANY 2 6.94% $13,187
Citizens Bank 2 6.50% $12,094
LAND HOME FINANCIAL SERVICES, INC. 2 5.94% $12,756
RESIDENTIAL BANCORP 2 6.19% $17,890
RELIANCE FIRST CAPITAL, LLC 2 6.00% $10,006
LOANLEADERS OF AMERICA, INC. 2 5.63% $16,169
PRIMARY RESIDENTIAL MORTGAGE, INC. 2 6.25% $10,392
PNC Bank 2 6.13% $8,274
PLAZA HOME MORTGAGE, INC. 2 7.13% $18,106
M&T Bank 2 6.75% $9,741
AMERICAN FINANCING CORPORATION 2 7.19% $12,977
The Federal Savings Bank 1 5.75% $19,255
AHL FUNDING 1 6.50% $19,350
American Mortgage & Equity Consultants, Inc. 1 6.50% $18,213
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 1 6.75% $21,420
ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 6.63% $13,534
AXIA FINANCIAL, LLC 1 6.63% $6,874
Bank of America 1 7.63% $10,233
BECKAM FUNDING CORP. 1 6.88% $17,527
CALIBER HOME LOANS, INC. 1 6.75% $9,526
CENTENNIAL LENDING, LLC 1 6.25% $11,506
Chickasaw Community Bank 1 6.38% $13,035
CHURCHILL MORTGAGE CORPORATION 1 6.88% $21,351
CITY FIRST MORTGAGE SERVICES, L.L.C. 1 5.50% $19,104
CORNERSTONE HOME LENDING, INC. 1 6.25% $14,206
First Internet Bank of Indiana 1 5.75% $10,495
First National Bank Texas 1 4.88% $19,318
First Savings Bank 1 5.75% $14,680
Franklin Loan Corporation 1 6.00% $16,866
Gateway First Bank 1 5.25% $3,565
Goldwater Bank, N.A. 1 6.25% $21,846
GoPrime Mortgage, Inc. 1 6.63% $9,931
HOMEBRIDGE FINANCIAL SERVICES, INC. 1 5.50% $10,948
HOMESIDE FINANCIAL, LLC 1 6.63% $9,952
Hometown Equity Mortgage, LLC 1 6.25% $11,601
INTERCAP LENDING INC. 1 6.63% $15,550
LAKEVIEW LOAN SERVICING, LLC 1 6.25% $10,054
LHM FINANCIAL CORPORATION 1 5.75% $6,698
Loan Simple, Inc. 1 6.25% $17,044
MASON MCDUFFIE MORTGAGE CORPORATION 1 6.63% $20,461
MICHIGAN MUTUAL, INC. 1 5.13% $13,907
MID AMERICA MORTGAGE, INC. 1 7.25% $5,815
NATIONS DIRECT MORTGAGE, LLC 1 6.63% $8,539
NATIONWIDE MORTGAGE BANKERS, INC. 1 7.13% $22,161
NBKC BANK 1 5.50% $8,917
Neighborhood Loans, Inc. 1 6.75% $12,032
NFM, INC. 1 7.00% $8,264
NuVision Federal Credit Union 1 6.75% $6,972
PACIFIC RESIDENTIAL MORTGAGE, LLC 1 7.63% $7,811
PREMIER MORTGAGE RESOURCES, L.L.C. 1 6.63% $18,643
PRIMELENDING, A PLAINSCAPITAL COMPANY 1 7.75% $15,653
ROYAL UNITED MORTGAGE LLC 1 6.00% $16,704
S1L, Inc. 1 6.25% $12,217
Sierra Pacific Mortgage Company, Inc. 1 6.88% $7,516
SIRVA MORTGAGE, INC. 1 5.75% $7,800
Strong Home Mortgage, LLC 1 6.75% $5,721
SUN AMERICAN MORTGAGE COMPANY 1 7.13% $5,372
The Loan Store, Inc. 1 6.99% $10,358
THRIVE MORTGAGE, LLC 1 6.50% $14,592
TOWNE MORTGAGE COMPANY 1 6.25% $13,344
UNITED SECURITY FINANCIAL CORP 1 7.50% $18,740
Wallick & Volk, Inc. 1 6.89% $8,263
Waterstone Mortgage Corporation 1 7.00% $14,395
Willamette Valley Bank 1 6.25% $17,217

The top Tucson FHA lender as defined by loan originations is NOVA FINANCIAL & INVESTMENT CORPORATION, with 396 FHA loans originated. Their average total fees are $8,280, which is $3,697 lower than the next largest lender, CROSSCOUNTRY MORTGAGE, LLC.

The lowest fee Tucson FHA lenders (with over 10 loans originated) are PULTE MORTGAGE LLC ($7,242), HOMEAMERICAN MORTGAGE CORPORATION ($7,939), ALTITUDE FINANCIAL CORPORATION ($8,208), NOVA FINANCIAL & INVESTMENT CORPORATION ($8,280) and Paramount Residential Mortgage Group, Inc. ($10,748).

The lowest rate Tucson FHA lenders (with over 10 loans originated) are EAGLE HOME MORTGAGE, LLC (4.91%), MATTAMY HOME FUNDING, LLC (5.28%), DHI MORTGAGE COMPANY, LTD. (5.30%), PULTE MORTGAGE LLC (5.40%) and HOMEAMERICAN MORTGAGE CORPORATION (5.47%).

Tucson FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
TUCSON, AZ PIMA 2022 $420,680 $538,650 $651,050 $809,150
TUCSON, AZ PIMA 2023 $472,030 $604,400 $730,525 $907,900

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Tucson (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 $266,950 (7.0%) $381,596 (5.7%) 0.99 3,610
2018-02-01 $274,246 (7.0%) $388,338 (4.1%) 1.00 3,499
2018-03-01 $274,900 (4.1%) $388,216 (2.8%) 0.96 3,449
2018-04-01 $279,925 (5.9%) $394,203 (4.8%) 0.95 3,276
2018-05-01 $282,400 (8.7%) $397,709 (5.9%) 0.94 3,219
2018-06-01 $278,000 (5.5%) $391,960 (4.2%) 0.93 3,121
2018-07-01 $279,808 (8.5%) $385,922 (5.1%) 0.93 3,089
2018-08-01 $279,948 (9.8%) $384,745 (6.1%) 0.94 3,044
2018-09-01 $279,900 (9.2%) $384,625 (5.9%) 0.94 3,102
2018-10-01 $277,450 (7.0%) $383,700 (4.3%) 0.94 3,358
2018-11-01 $279,313 (6.7%) $382,574 (1.7%) 0.95 3,480
2018-12-01 $278,000 (6.9%) $388,460 (2.8%) 0.96 3,440
2019-01-01 $279,500 (4.7%) $394,391 (3.4%) 0.97 3,367
2019-02-01 $285,750 (4.2%) $403,772 (4.0%) 0.97 3,416
2019-03-01 $293,857 (6.9%) $416,220 (7.2%) 0.96 3,288
2019-04-01 $298,581 (6.7%) $421,878 (7.0%) 0.95 3,201
2019-05-01 $298,641 (5.8%) $422,167 (6.2%) 0.93 3,040
2019-06-01 $294,500 (5.9%) $413,490 (5.5%) 0.92 2,886
2019-07-01 $287,995 (2.9%) $406,364 (5.3%) 0.90 2,793
2019-08-01 $289,273 (3.3%) $412,402 (7.2%) 0.92 2,717
2019-09-01 $289,682 (3.5%) $417,264 (8.5%) 0.93 2,739
2019-10-01 $289,955 (4.5%) $419,182 (9.3%) 0.94 2,783
2019-11-01 $286,989 (2.8%) $415,873 (8.7%) 0.94 2,814
2019-12-01 $285,500 (2.7%) $413,647 (6.5%) 0.95 2,672
2020-01-01 $287,500 (2.9%) $414,853 (5.2%) 0.96 2,501
2020-02-01 $297,830 (4.2%) $429,226 (6.3%) 0.97 2,448
2020-03-01 $299,675 (2.0%) $431,529 (3.7%) 0.94 2,404
2020-04-01 $296,963 (-0.5%) $413,561 (-2.0%) 0.93 2,642
2020-05-01 $300,000 (0.5%) $425,640 (0.8%) 0.91 2,336
2020-06-01 $321,950 (9.3%) $456,526 (10.4%) 0.95 1,772
2020-07-01 $325,000 (12.9%) $453,254 (11.5%) 0.94 1,549
2020-08-01 $323,270 (11.8%) $459,454 (11.4%) 0.93 1,521
2020-09-01 $316,332 (9.2%) $465,601 (11.6%) 0.91 1,532
2020-10-01 $310,000 (6.9%) $459,550 (9.6%) 0.89 1,641
2020-11-01 $313,439 (9.2%) $470,630 (13.2%) 0.92 1,553
2020-12-01 $315,000 (10.3%) $472,568 (14.2%) 0.94 1,367
2021-01-01 $320,000 (11.3%) $494,616 (19.2%) 0.96 1,169
2021-02-01 $325,000 (9.1%) $515,150 (20.0%) 0.95 940
2021-03-01 $335,035 (11.8%) $527,183 (22.2%) 0.95 879
2021-04-01 $342,000 (15.2%) $528,171 (27.7%) 0.93 893
2021-05-01 $344,000 (14.7%) $520,700 (22.3%) 0.91 934
2021-06-01 $350,000 (8.7%) $520,919 (14.1%) 0.92 993
2021-07-01 $350,000 (7.7%) $489,786 (8.1%) 0.92 1,180
2021-08-01 $359,725 (11.3%) $483,535 (5.2%) 0.96 1,328
2021-09-01 $359,950 (13.8%) $484,218 (4.0%) 0.96 1,497
2021-10-01 $359,000 (15.8%) $479,305 (4.3%) 0.96 1,697
2021-11-01 $359,950 (14.8%) $483,323 (2.7%) 0.96 1,674
2021-12-01 $361,950 (14.9%) $480,444 (1.7%) 0.98 1,521
2022-01-01 $364,990 (14.1%) $500,987 (1.3%) 0.99 1,362
2022-02-01 $375,495 (15.5%) $538,244 (4.5%) 0.98 1,083
2022-03-01 $388,247 (15.9%) $562,017 (6.6%) 0.97 999
2022-04-01 $399,500 (16.8%) $566,315 (7.2%) 0.95 1,030
2022-05-01 $407,008 (18.3%) $580,535 (11.5%) 0.93 1,205
2022-06-01 $409,950 (17.1%) $567,549 (9.0%) 0.91 1,513
2022-07-01 $399,990 (14.3%) $540,818 (10.4%) 0.90 1,946
2022-08-01 $391,000 (8.7%) $519,170 (7.4%) 0.90 2,163
2022-09-01 $383,356 (6.5%) $507,188 (4.7%) 0.90 2,363
2022-10-01 $379,000 (5.6%) $505,419 (5.5%) 0.89 2,636
2022-11-01 $375,000 (4.2%) $510,223 (5.6%) 0.90 2,782
2022-12-01 $375,000 (3.6%) $508,106 (5.8%) 0.93 2,596
2023-01-01 $377,000 (3.3%) $524,574 (4.7%) 0.93 2,370
2023-02-01 $389,000 (3.6%) $547,620 (1.7%) 0.94 2,121
2023-03-01 $399,950 (3.0%) $565,451 (0.6%) 0.94 1,953
2023-04-01 $403,675 (1.1%) $582,574 (2.9%) 0.94 1,692
2023-05-01 $414,350 (1.8%) $595,129 (2.5%) 0.94 1,608
2023-06-01 $414,997 (1.2%) $588,646 (3.7%) 0.93 1,609
2023-07-01 $410,000 (2.5%) $583,215 (7.8%) 0.93 1,622
2023-08-01 $406,025 (3.8%) $575,012 (10.8%) 0.93 1,630
2023-09-01 $399,900 (4.3%) $570,632 (12.5%) 0.93 1,757
2023-10-01 $399,000 (5.3%) $552,351 (9.3%) 0.94 2,083
2023-11-01 $399,900 (6.6%) $555,334 (8.8%) 0.95 2,309
2023-12-01 $398,900 (6.4%) $548,714 (8.0%) 0.97 2,347
2024-01-01 $399,000 (5.8%) $556,034 (6.0%) 0.97 2,375
2024-02-01 $400,000 (2.8%) $570,948 (4.3%) 0.96 2,399
2024-03-01 $402,700 (0.7%) $568,129 (0.5%) 0.95 2,420
2024-04-01 $409,299 (1.4%) $572,034 (-1.8%) 0.95 2,491
Tucson's median listing price for 2024-04-01 was $409,299, a difference of $5,624 (1.4%) versus the prior year and $6,599 versus the prior month.

Tucson's median listing price comes in at 95% of the national average.

Tucson's average listing price for 2024-04-01 was $572,034, a difference of $-10,540 (-1.8%) versus the prior year and $3,905 versus the prior month.

For the 2024-04-01 period, Tucson had 2,491 MLS listings, a difference of 71 listings (3%) versus the prior month and 799 listings (47%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Tucson (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 64 days 2,004 sqft
2018-02-01 51 days 2,030 sqft
2018-03-01 50 days 2,036 sqft
2018-04-01 50 days 2,050 sqft
2018-05-01 48 days 2,058 sqft
2018-06-01 50 days 2,013 sqft
2018-07-01 53 days 2,026 sqft
2018-08-01 54 days 2,019 sqft
2018-09-01 52 days 2,020 sqft
2018-10-01 50 days 1,987 sqft
2018-11-01 51 days 1,987 sqft
2018-12-01 58 days 1,962 sqft
2019-01-01 63 days 1,993 sqft
2019-02-01 48 days 2,030 sqft
2019-03-01 48 days 2,058 sqft
2019-04-01 51 days 2,062 sqft
2019-05-01 51 days 2,047 sqft
2019-06-01 51 days 2,049 sqft
2019-07-01 50 days 2,020 sqft
2019-08-01 50 days 2,027 sqft
2019-09-01 49 days 2,026 sqft
2019-10-01 49 days 2,024 sqft
2019-11-01 52 days 1,976 sqft
2019-12-01 60 days 1,960 sqft
2020-01-01 59 days 1,981 sqft
2020-02-01 44 days 1,996 sqft
2020-03-01 43 days 1,997 sqft
2020-04-01 44 days 1,958 sqft
2020-05-01 55 days 1,980 sqft
2020-06-01 57 days 2,010 sqft
2020-07-01 53 days 2,008 sqft
2020-08-01 51 days 1,986 sqft
2020-09-01 47 days 1,937 sqft
2020-10-01 48 days 1,905 sqft
2020-11-01 50 days 1,911 sqft
2020-12-01 55 days 1,905 sqft
2021-01-01 52 days 1,912 sqft
2021-02-01 40 days 1,907 sqft
2021-03-01 38 days 1,920 sqft
2021-04-01 35 days 1,872 sqft
2021-05-01 32 days 1,871 sqft
2021-06-01 32 days 1,880 sqft
2021-07-01 30 days 1,844 sqft
2021-08-01 30 days 1,854 sqft
2021-09-01 32 days 1,851 sqft
2021-10-01 33 days 1,845 sqft
2021-11-01 37 days 1,868 sqft
2021-12-01 44 days 1,862 sqft
2022-01-01 44 days 1,861 sqft
2022-02-01 37 days 1,868 sqft
2022-03-01 35 days 1,879 sqft
2022-04-01 32 days 1,883 sqft
2022-05-01 30 days 1,920 sqft
2022-06-01 30 days 1,914 sqft
2022-07-01 32 days 1,873 sqft
2022-08-01 37 days 1,839 sqft
2022-09-01 41 days 1,817 sqft
2022-10-01 44 days 1,812 sqft
2022-11-01 50 days 1,813 sqft
2022-12-01 60 days 1,812 sqft
2023-01-01 61 days 1,822 sqft
2023-02-01 52 days 1,837 sqft
2023-03-01 47 days 1,860 sqft
2023-04-01 47 days 1,904 sqft
2023-05-01 43 days 1,924 sqft
2023-06-01 43 days 1,959 sqft
2023-07-01 43 days 1,944 sqft
2023-08-01 41 days 1,918 sqft
2023-09-01 41 days 1,904 sqft
2023-10-01 39 days 1,868 sqft
2023-11-01 43 days 1,862 sqft
2023-12-01 51 days 1,852 sqft
2024-01-01 54 days 1,847 sqft
2024-02-01 44 days 1,852 sqft
2024-03-01 44 days 1,849 sqft
2024-04-01 45 days 1,852 sqft
Tucson's median listing age (time on market) for 2024-04-01 was 45 days. This is -5% shorter than the same period one year ago.

Tucson's median square footage for active listings during the 2024-04-01 period was 1,852 sqft. One year prior, the average listing was 1,904 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).