Warren FHA Loans

WARREN-TROY-FARMINGTON HILLS, MI

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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.

    Warren's 193 lenders originated 10,406 FHA loans during 2021. The total origination value was $2,048,060,000, with an average FHA loan value of $196,815.

    Warren FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Warren averaged 4.79% for the week of 2022-03-25, compared to the national average (all FHA variants) of 4.648% for the same period.

    The average rate for the prior week (2022-03-18) was 4.21% and one month ago for the week of 2022-02-18, the average rate was 4.24%.

    The average rate one year ago was 3.47%.

    For refis of the same type during the week of 2022-03-25, the average rate was 4.41%.

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

    Warren FHA Loan Lenders by Rates & Fees

    The below table looks at the average fees and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Warren level.

    Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
    QUICKEN LOANS, LLC 2,386 2.76% $5,517
    UNITED WHOLESALE MORTGAGE, LLC 913 2.84% $7,142
    MORTGAGE 1 INCORPORATED 499 3.38% $7,920
    CALIBER HOME LOANS, INC. 397 3.03% $6,270
    FREEDOM MORTGAGE CORPORATION 306 2.92% $4,495
    LAKEVIEW LOAN SERVICING, LLC 242 3.09% $4,537
    Mr. Cooper ( Nationstar Mortgage ) 221 3.24% $4,431
    MICHIGAN MUTUAL, INC. 209 3.33% $6,652
    CROSSCOUNTRY MORTGAGE, LLC 201 3.31% $7,534
    Flagstar Bank, FSB 181 3.08% $6,022
    PENNYMAC LOAN SERVICES, LLC 170 3.14% $4,309
    GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 135 3.29% $6,763
    HOME POINT FINANCIAL CORPORATION 124 3.04% $6,250
    The Huntington National Bank 114 3.10% $6,364
    VILLAGE CAPITAL & INVESTMENT LLC 111 2.88% $2,951
    LOANDEPOT.COM, LLC 110 3.21% $7,262
    AMERIFIRST FINANCIAL CORPORATION 102 3.79% $6,827
    Carrington Mortgage Services, LLC 99 3.57% $7,685
    UNION HOME MORTGAGE CORP. 98 3.39% $7,079
    Platinum Home Mortgage Corporation 92 3.20% $7,314
    STAUNTON FINANCIAL, INC. 88 3.10% $6,755
    J. VIRGIL, INC. 83 3.19% $8,813
    NEWREZ LLC 73 3.00% $5,495
    BROKER SOLUTIONS, INC. 69 3.17% $7,372
    CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 68 3.09% $7,145
    MICHIGAN FIRST CREDIT UNION 68 3.42% $6,235
    ROSS MORTGAGE CORPORATION 60 3.40% $7,594
    HOMEBRIDGE FINANCIAL SERVICES, INC. 55 2.82% $5,819
    AmeriHome Mortgage Company, LLC 54 2.98% $4,466
    First State Bank 53 3.24% $5,876
    LAKE MICHIGAN CREDIT UNION 51 2.95% $7,087
    SUMMIT FUNDING, INC. 50 3.26% $7,397
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 49 3.33% $6,334
    AMERISAVE MORTGAGE CORPORATION 49 2.96% $7,951
    RUOFF MORTGAGE COMPANY, INC. 47 3.41% $5,597
    SUCCESS MORTGAGE PARTNERS, INC. 46 3.28% $8,595
    HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 43 3.21% $7,613
    BLG HOLDINGS, INC. 41 3.34% $6,701
    TOWNE MORTGAGE COMPANY 41 3.32% $7,560
    EVERETT FINANCIAL, INC. 40 3.94% $5,648
    MICHIGAN SCHOOLS AND GOVERNMENT 40 3.11% $5,813
    MEMBER FIRST MORTGAGE, LLC 38 3.24% $6,066
    Preston Home Loans Inc 38 3.05% $7,484
    ACADEMY MORTGAGE CORPORATION 37 3.25% $7,401
    PLAZA HOME MORTGAGE, INC. 37 3.13% $6,816
    Lakeview Community Capital, LLC 37 3.05% $4,122
    First Guaranty Mortgage Corporation 36 2.94% $5,534
    HOMESITE MORTGAGE, LLC 36 3.08% $7,724
    UNIVERSITY LENDING GROUP, LLC 36 3.15% $6,883
    Citizens Bank 33 2.88% $6,033
    CMG MORTGAGE, INC. 32 3.43% $8,836
    MORTGAGE CENTER L.C 32 3.23% $5,957
    MID AMERICA MORTGAGE, INC. 30 3.30% $3,955
    JPMorgan Chase Bank 29 2.98% $4,071
    Paramount Residential Mortgage Group, Inc. 28 3.50% $8,413
    PRIMELENDING, A PLAINSCAPITAL COMPANY 28 3.71% $7,788
    PLANET HOME LENDING, LLC 27 2.80% $4,489
    ENVOY MORTGAGE, LTD 26 3.41% $7,038
    Independent Bank 25 3.21% $6,882
    GUARANTEED RATE, INC. 23 2.96% $6,633
    First Savings Bank 22 3.21% $9,131
    NATIONS DIRECT MORTGAGE, LLC 20 3.19% $9,062
    Bank of England 20 3.31% $7,864
    TOP FLITE FINANCIAL, INC. 19 3.47% $7,552
    AMERICAN FINANCIAL NETWORK, INC. 18 3.13% $11,374
    SUN WEST MORTGAGE COMPANY, INC. 17 2.92% $6,183
    GENEVA FINANCIAL, LLC 16 3.21% $7,633
    Fifth Third Bank 16 3.13% $5,614
    STOCKTON MORTGAGE CORPORATION 16 3.16% $9,078
    UNITED SECURITY FINANCIAL CORP 16 2.79% $5,298
    SOUTHWEST FUNDING, LP 16 3.49% $10,582
    Level One Bank 14 3.15% $7,254
    TCF National Bank 14 2.71% $6,120
    PNC Bank 14 2.82% $5,073
    MUTUAL OF OMAHA MORTGAGE, INC. 13 3.09% $7,668
    Equity Prime Mortgage LLC 13 3.36% $7,334
    Luxury Mortgage Corp. 13 3.42% $8,360
    OCEANSIDE MORTGAGE COMPANY 13 2.84% $2,602
    Prosperity Home Mortgage, LLC 12 3.73% $6,857
    Nations Lending Corporation 12 3.18% $10,057
    InterContinental Capital Group, Inc 11 2.90% $6,746
    Bank of America 11 2.69% $4,948
    Mortgage Research Center, LLC 10 2.94% $6,428
    ADVISORS CAPITAL, INC. 10 3.10% $7,181
    U.S. Bank 10 3.44% $6,657
    KELLER MORTGAGE, LLC 10 3.09% $5,475
    HANCOCK MORTGAGE PARTNERS, LLC 9 3.18% $7,884
    THE ANDERSON FINANCIAL GROUP, INC. 9 2.65% $6,472
    HOMESIDE FINANCIAL, LLC 9 2.97% $8,672
    DAS Acquisition Company, LLC 8 3.23% $7,678
    FINANCE OF AMERICA MORTGAGE LLC 8 3.28% $6,647
    MOVEMENT MORTGAGE, LLC 7 3.57% $7,356
    Manufacturers and Traders Trust Company 6 3.21% $7,359
    Hometown Equity Mortgage, LLC 6 3.81% $9,085
    PRIMARY RESIDENTIAL MORTGAGE, INC. 5 3.18% $5,346
    ChoiceOne Bank 5 3.33% $5,696
    AMERICAN PACIFIC MORTGAGE CORPORATION 5 3.60% $5,957
    RELIANCE FIRST CAPITAL, LLC 5 3.13% $8,253
    EMBRACE HOME LOANS, INC. 5 3.05% $5,860
    INSPIRE HOME LOANS INC. 5 3.48% $7,104
    PREMIA MORTGAGE, LLC 5 2.80% $7,161
    AMERICAN FINANCING CORPORATION 5 3.08% $6,531
    HARTFORD FUNDING, LTD. 5 3.08% $7,784
    FIRST HERITAGE FINANCIAL, LLC 4 3.41% $7,018
    GVC MORTGAGE, INC. 4 3.66% $6,333
    TJC Mortgage, Inc. 4 2.91% $7,404
    Goldwater Bank, N.A. 4 3.31% $7,121
    The Federal Savings Bank 4 2.63% $9,473
    ARC HOME LLC 4 3.00% $7,908
    SOVEREIGN LENDING GROUP INCORPORATED 4 2.97% $7,285
    LIBERTY HOME MORTGAGE CORPORATION 4 3.12% $10,209
    Dort Financial Credit Union 4 3.50% $6,823
    PULTE MORTGAGE LLC 4 3.09% $11,357
    DIAMOND RESIDENTIAL MORTGAGE CORPORATION 4 3.22% $8,303
    EMM LOANS LLC 4 2.63% $11,161
    Century Mortgage Company DBA Century Lending Company 4 3.00% $6,798
    Northpointe Bank 4 3.78% $6,119
    NATIONS RELIABLE LENDING, LLC 4 3.25% $7,093
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 3 2.67% $6,705
    GUARANTY HOME MORTGAGE CORPORATION 3 3.08% $6,278
    Ixonia Bank 3 4.21% $7,824
    Mercantile Bank of Michigan 3 2.75% $5,952
    ZILLOW HOME LOANS, LLC 3 2.92% $6,952
    Peoples Bank 3 3.21% $10,645
    CHURCHILL MORTGAGE CORPORATION 3 3.21% $6,788
    RESIDENTIAL BANCORP. 3 2.79% $6,225
    Barrington Bank & Trust Company, N.A. 3 3.33% $4,679
    Bank of Ann Arbor 3 2.88% $5,569
    STEARNS LENDING, LLC 3 2.58% $14,584
    Christensen Financial, Inc. 2 3.44% $7,807
    Willamette Valley Bank 2 3.19% $8,165
    VANDERBILT MORTGAGE AND FINANCE, INC. 2 3.06% $9,165
    PHH Mortgage Corporation 2 3.25% $3,673
    First Federal Bank 2 2.94% $10,416
    Plains Commerce Bank 2 3.13% $11,166
    BETTER MORTGAGE CORPORATION 2 2.88% $5,525
    INLANTA MORTGAGE, INC. 2 3.13% $9,028
    First Home Bank 2 3.38% $11,012
    PANORAMA MORTGAGE GROUP, LLC 2 2.50% $5,608
    Residential Mortgage Solutions, Inc. 2 2.75% $8,199
    AMERICAN FINANCIAL RESOURCES, INC. 2 3.13% $6,887
    MMS MORTGAGE SERVICES, LTD. 2 3.00% $8,297
    AmRes Corporation 2 4.00% $7,779
    BECKAM FUNDING CORP. 2 3.31% $11,165
    MORIA DEVELOPMENT, INC. 2 3.75% $7,183
    NATIONWIDE MORTGAGE BANKERS, INC. 2 3.00% $7,038
    ROYAL UNITED MORTGAGE LLC 2 3.25% $6,894
    BAYSHORE MORTGAGE FUNDING, LLC 2 3.50% $5,507
    Servion, Inc. 2 3.06% $8,178
    North American Savings Bank, F.S.B. 2 2.81% $7,410
    HALLMARK HOME MORTGAGE, LLC 1 3.63% $8,336
    First Merchants Bank 1 3.25% $4,690
    Sunflower Bank 1 2.49% $6,676
    SWBC MORTGAGE CORPORATION 1 3.63% $6,392
    T2 FINANCIAL LLC 1 3.25% $6,468
    Ameris Bank 1 2.63% $5,601
    Texana Bank 1 3.13% $6,825
    First Western Trust Bank 1 3.25% $8,629
    The Dart Bank 1 3.50% $5,591
    Florida Capital Bank 1 2.50% $7,586
    Amerifirst Financial, Inc. 1 2.75% $12,148
    TIAA, FSB 1 2.88% $4,744
    GSF Mortgage Corporation 1 4.25% $10,323
    AMERICAN PORTFOLIO MORTGAGE CORPORATION 1 2.50% $9,564
    AMERICAN MORTGAGE SERVICE COMPANY 1 3.50% $8,630
    UNITED MORTGAGE CORP. 1 4.00% $7,964
    INLAND BANK & TRUST 1 2.38% $6,730
    GUARANTEED RATE AFFINITY, LLC 1 2.75% $4,873
    DEVELOPER'S MORTGAGE COMPANY 1 2.88% $4,493
    COMPASS MORTGAGE, INC. 1 2.75% $4,062
    NEXERA HOLDING LLC 1 3.63% $9,308
    NFM, INC. 1 3.38% $3,385
    Allied First Bank,sb 1 3.00% $7,836
    US MORTGAGE CORPORATION 1 4.25% $7,118
    OCMBC, INC. 1 2.25% $8,955
    COMMUNITYAMERICA 1 3.13% $7,471
    CIBC Bank USA 1 2.38% $9,174
    HOWARD HANNA FINANCIAL SERVICES, INC. 1 2.88% $10,531
    M/I FINANCIAL, LLC 1 2.75% $8,566
    Midwest Community Bank 1 3.63% $8,894
    POLARIS HOME FUNDING CORP. 1 4.00% $5,750
    EVANSVILLE TEACHERS 1 2.63% $7,846
    CELEBRITY HOME LOANS, LLC 1 3.00% $8,047
    Extra 1 2.88% $6,012
    CALCON MUTUAL MORTGAGE LLC 1 2.75% $8,738
    Wyndham Capital Mortgage, Inc. 1 2.50% $4,614
    Wells Fargo Bank 1 2.88% $5,995
    Sierra Pacific Mortgage Company, Inc. 1 2.25% $7,951
    LEADERONE FINANCIAL CORPORATION 1 2.88% $12,692
    Hometown Lenders, Inc. 1 3.25% $11,092
    GUILD MORTGAGE COMPANY 1 3.13% $4,703
    LAND HOME FINANCIAL SERVICES, INC. 1 3.75% $7,895
    Strong Home Mortgage, LLC 1 2.50% $6,924

    The top Warren FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 2,386 FHA loans originated. Their average total fees are $5,517, which is $1,625 lower than the next largest lender, UNITED WHOLESALE MORTGAGE, LLC.

    The lowest fee Warren FHA lenders (with over 10 loans originated) are OCEANSIDE MORTGAGE COMPANY ($2,602), VILLAGE CAPITAL & INVESTMENT LLC ($2,951), MID AMERICA MORTGAGE, INC. ($3,955), JPMorgan Chase Bank ($4,071) and Lakeview Community Capital, LLC ($4,122).

    The lowest rate Warren FHA lenders (with over 10 loans originated) are Bank of America (2.69%), TCF National Bank (2.71%), QUICKEN LOANS, LLC (2.76%), UNITED SECURITY FINANCIAL CORP (2.79%) and PLANET HOME LENDING, LLC (2.80%).

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Warren (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 $199,450 (7.2%) $307,748 (4.8%) 0.73 10,243
    2018-02-01 $202,400 (5.3%) $316,034 (4.9%) 0.73 9,588
    2018-03-01 $223,000 (5.0%) $337,028 (7.2%) 0.77 9,395
    2018-04-01 $242,450 (7.8%) $342,600 (4.1%) 0.81 9,811
    2018-05-01 $249,900 (6.4%) $348,144 (2.6%) 0.83 10,802
    2018-06-01 $252,000 (5.7%) $353,204 (3.4%) 0.84 12,035
    2018-07-01 $249,950 (6.4%) $347,899 (3.9%) 0.83 13,283
    2018-08-01 $244,900 (8.8%) $335,598 (2.8%) 0.82 14,600
    2018-09-01 $239,900 (6.7%) $334,488 (2.9%) 0.80 15,246
    2018-10-01 $231,700 (5.4%) $325,656 (1.7%) 0.77 15,179
    2018-11-01 $225,000 (4.7%) $318,611 (0.7%) 0.75 14,782
    2018-12-01 $219,900 (7.3%) $313,544 (0.2%) 0.75 13,506
    2019-01-01 $219,700 (10.2%) $312,979 (1.7%) 0.76 12,424
    2019-02-01 $219,952 (8.7%) $316,633 (0.2%) 0.74 11,742
    2019-03-01 $234,971 (5.4%) $329,887 (-2.1%) 0.77 11,477
    2019-04-01 $252,450 (4.1%) $345,866 (1.0%) 0.79 11,469
    2019-05-01 $259,900 (4.0%) $353,689 (1.6%) 0.80 12,508
    2019-06-01 $264,900 (5.1%) $352,225 (-0.3%) 0.82 13,857
    2019-07-01 $259,950 (4.0%) $347,048 (-0.2%) 0.81 15,141
    2019-08-01 $251,329 (2.6%) $336,777 (0.4%) 0.79 15,754
    2019-09-01 $239,900 (0.0%) $324,126 (-3.1%) 0.76 16,121
    2019-10-01 $239,150 (3.2%) $323,824 (-0.6%) 0.76 15,975
    2019-11-01 $232,900 (3.5%) $319,873 (0.4%) 0.75 14,923
    2019-12-01 $225,000 (2.3%) $314,459 (0.3%) 0.75 13,067
    2020-01-01 $224,400 (2.1%) $314,583 (0.5%) 0.75 11,700
    2020-02-01 $224,999 (2.3%) $319,395 (0.9%) 0.73 10,745
    2020-03-01 $239,900 (2.1%) $334,475 (1.4%) 0.75 10,285
    2020-04-01 $244,950 (-3.0%) $334,393 (-3.3%) 0.76 9,984
    2020-05-01 $254,700 (-2.0%) $345,247 (-2.4%) 0.77 10,708
    2020-06-01 $274,900 (3.8%) $368,856 (4.7%) 0.80 10,239
    2020-07-01 $279,950 (7.7%) $380,207 (9.6%) 0.80 9,825
    2020-08-01 $279,900 (11.4%) $381,969 (13.4%) 0.80 9,338
    2020-09-01 $274,950 (14.6%) $381,087 (17.6%) 0.79 9,033
    2020-10-01 $269,900 (12.9%) $381,166 (17.7%) 0.77 8,406
    2020-11-01 $259,900 (11.6%) $380,076 (18.8%) 0.74 7,714
    2020-12-01 $253,500 (12.7%) $378,211 (20.3%) 0.74 6,749
    2021-01-01 $250,000 (11.4%) $379,714 (20.7%) 0.74 5,642
    2021-02-01 $259,900 (15.5%) $395,378 (23.8%) 0.75 4,705
    2021-03-01 $271,200 (13.1%) $404,090 (20.8%) 0.76 4,548
    2021-04-01 $274,950 (12.3%) $411,182 (23.0%) 0.74 4,651
    2021-05-01 $279,900 (9.9%) $414,150 (20.0%) 0.74 5,253
    2021-06-01 $279,200 (1.6%) $401,220 (8.8%) 0.73 6,498
    2021-07-01 $277,450 (-0.9%) $399,822 (5.2%) 0.72 7,033
    2021-08-01 $267,500 (-4.4%) $387,080 (1.3%) 0.70 7,884
    2021-09-01 $252,500 (-8.2%) $374,582 (-1.7%) 0.66 8,067
    2021-10-01 $245,000 (-9.2%) $363,449 (-4.7%) 0.64 7,805
    2021-11-01 $230,900 (-11.2%) $351,438 (-7.5%) 0.61 7,238
    2021-12-01 $217,450 (-14.2%) $348,174 (-7.9%) 0.58 6,279
    2022-01-01 $210,000 (-16.0%) $344,377 (-9.3%) 0.56 5,163
    Warren's median listing price for 2022-01-01 was $210,000, a difference of $-40,000 (-16.0%) versus the prior year and $-7,450 versus the prior month.

    Warren's median listing price comes in at 56% of the national average.

    Warren's average listing price for 2022-01-01 was $344,377, a difference of $-35,337 (-9.3%) versus the prior year and $-3,797 versus the prior month.

    For the 2022-01-01 period, Warren had 5,163 MLS listings, a difference of -1,116 listings (-18%) versus the prior month and -479 listings (-8%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Warren (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 67 days 1,571 sqft
    2018-02-01 64 days 1,575 sqft
    2018-03-01 50 days 1,635 sqft
    2018-04-01 39 days 1,686 sqft
    2018-05-01 36 days 1,713 sqft
    2018-06-01 36 days 1,740 sqft
    2018-07-01 37 days 1,728 sqft
    2018-08-01 37 days 1,700 sqft
    2018-09-01 40 days 1,686 sqft
    2018-10-01 45 days 1,648 sqft
    2018-11-01 47 days 1,616 sqft
    2018-12-01 58 days 1,585 sqft
    2019-01-01 65 days 1,585 sqft
    2019-02-01 63 days 1,596 sqft
    2019-03-01 51 days 1,634 sqft
    2019-04-01 38 days 1,685 sqft
    2019-05-01 36 days 1,721 sqft
    2019-06-01 36 days 1,732 sqft
    2019-07-01 37 days 1,730 sqft
    2019-08-01 39 days 1,705 sqft
    2019-09-01 46 days 1,668 sqft
    2019-10-01 46 days 1,658 sqft
    2019-11-01 50 days 1,635 sqft
    2019-12-01 62 days 1,600 sqft
    2020-01-01 68 days 1,592 sqft
    2020-02-01 59 days 1,592 sqft
    2020-03-01 48 days 1,615 sqft
    2020-04-01 60 days 1,624 sqft
    2020-05-01 67 days 1,650 sqft
    2020-06-01 39 days 1,730 sqft
    2020-07-01 38 days 1,753 sqft
    2020-08-01 36 days 1,722 sqft
    2020-09-01 37 days 1,684 sqft
    2020-10-01 37 days 1,655 sqft
    2020-11-01 42 days 1,606 sqft
    2020-12-01 51 days 1,587 sqft
    2021-01-01 56 days 1,570 sqft
    2021-02-01 45 days 1,580 sqft
    2021-03-01 34 days 1,594 sqft
    2021-04-01 25 days 1,598 sqft
    2021-05-01 22 days 1,609 sqft
    2021-06-01 21 days 1,601 sqft
    2021-07-01 23 days 1,598 sqft
    2021-08-01 25 days 1,564 sqft
    2021-09-01 30 days 1,520 sqft
    2021-10-01 32 days 1,499 sqft
    2021-11-01 36 days 1,456 sqft
    2021-12-01 44 days 1,426 sqft
    2022-01-01 55 days 1,413 sqft
    Warren's median listing age (time on market) for 2022-01-01 was 55 days. This is -2% shorter than the same period one year ago.

    Warren's median square footage for active listings during the 2022-01-01 period was 1,413 sqft. One year prior, the average listing was 1,570 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).