Wichita FHA Loan Rates, Closing Costs & Stats

WICHITA, KS

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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.

    Wichita's 107 lenders originated 1,661 FHA loans during 2024. The total origination value was $333,705,000, with an average FHA loan value of $200,906.

    Wichita FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Wichita averaged 6.93% for the week of 2025-05-23, compared to the national average (all FHA variants) of 6.612% for the same period.

    Wichita's average FHA mortgage closing costs are $6,303.

    The average rate for the prior week (2025-05-16) was 6.67% and one month ago for the week of 2025-04-18, the average rate was 6.39%.

    The average rate one year ago was 6.86%.

    For refis of the same type during the week of 2025-05-23, the average rate was 6.07%.

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

    Wichita 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 Wichita level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    QUICKEN LOANS, LLC 147 6.38% $9,047
    Sierra Pacific Mortgage Company, Inc. 106 6.48% $9,222
    FLAT BRANCH MORTGAGE, INC. 99 6.66% $7,785
    PENNYMAC LOAN SERVICES, LLC 77 6.09% $8,407
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 74 6.44% $8,902
    GUILD MORTGAGE COMPANY 71 6.81% $8,687
    PLANET HOME LENDING, LLC 68 6.52% $7,707
    LOANDEPOT.COM, LLC 66 6.59% $8,617
    FREEDOM MORTGAGE CORPORATION 62 6.38% $9,926
    Members Mortgage Services, L.L.C. 62 6.33% $7,249
    UNITED WHOLESALE MORTGAGE, LLC 59 6.09% $10,609
    Fidelity Bank 53 6.58% $6,239
    Regent Financial Group, Inc. 48 6.66% $8,772
    Gateway First Bank 39 6.70% $7,654
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 38 6.71% $7,706
    Equity Prime Mortgage LLC 32 7.17% $9,899
    NEWREZ LLC 24 6.46% $9,354
    US MORTGAGE CORPORATION 24 6.65% $10,828
    BROKER SOLUTIONS, INC. 20 6.82% $10,144
    VILLAGE CAPITAL MORTGAGE 19 6.30% $8,199
    PENTAGON FEDERAL CREDIT UNION 19 5.74% $10,694
    HOMESIDE FINANCIAL, LLC 18 6.47% $8,351
    Flagstar Bank, FSB 18 6.26% $7,497
    OPEN MORTGAGE, LLC 14 6.89% $7,507
    MID AMERICA MORTGAGE, INC. 14 6.79% $5,806
    American Mortgage Bank, LLC 14 6.63% $7,090
    Mr. Cooper ( Nationstar Mortgage ) 12 6.58% $10,358
    AMERISAVE MORTGAGE CORPORATION 12 6.27% $11,096
    Sunflower Bank 12 6.25% $9,014
    LEADERONE FINANCIAL CORPORATION 12 6.42% $11,141
    BOKF 11 6.57% $8,648
    PRIMELENDING, A PLAINSCAPITAL COMPANY 11 6.88% $8,011
    Mortgage Research Center, LLC 10 6.94% $6,604
    PRIMARY RESIDENTIAL MORTGAGE, INC. 8 7.02% $7,718
    MUTUAL OF OMAHA MORTGAGE, INC. 8 6.83% $9,657
    AMERICAN FINANCING CORPORATION 8 5.91% $11,415
    LAKEVIEW LOAN SERVICING, LLC 8 6.22% $9,800
    Equity Bank 6 6.21% $7,760
    AMERICAN FINANCIAL NETWORK, INC. 6 7.46% $8,732
    Carrington Mortgage Services, LLC 6 5.88% $9,668
    Plains Commerce Bank 6 6.96% $7,109
    SUN WEST MORTGAGE COMPANY, INC. 5 6.42% $8,174
    U.S. Bank 5 6.53% $7,560
    Bank of America 4 5.97% $3,793
    The Central Trust Bank 4 6.16% $9,411
    The Loan Store, Inc. 4 5.97% $12,826
    Mortgage Investment Services Corporation 4 6.81% $6,759
    LOANPAL, LLC 4 5.25% $10,412
    American Mortgage & Equity Consultants, Inc. 3 7.17% $8,925
    CMG MORTGAGE, INC. 3 6.79% $15,971
    AMERICAN FINANCIAL RESOURCES, INC. 3 6.71% $8,028
    Commerce Bank 3 6.96% $6,222
    RCB Bank 3 6.42% $4,151
    JPMorgan Chase Bank 3 6.25% $5,212
    CROSSCOUNTRY MORTGAGE, LLC 3 6.52% $17,335
    ZILLOW HOME LOANS, LLC 2 6.75% $11,987
    AmeriHome Mortgage Company, LLC 2 5.88% $9,683
    BETTER MORTGAGE CORPORATION 2 5.50% $8,610
    BMO Harris Bank 2 6.44% $5,377
    CARDINAL FINANCIAL 2 6.69% $6,805
    Century Mortgage Company DBA Century Lending Company 2 6.13% $7,848
    HOMEOWNERS FINANCIAL GROUP USA, LLC 2 6.88% $13,555
    Midwest Mortgage Associates Corporation 2 6.69% $9,558
    MOVEMENT MORTGAGE, LLC 2 6.19% $13,374
    Nations Lending Corporation 2 6.63% $15,908
    NBH Bank 2 6.27% $5,612
    NBKC BANK 2 6.13% $8,855
    ROYAL UNITED MORTGAGE LLC 2 6.44% $12,121
    The Federal Savings Bank 2 7.00% $6,972
    UNION HOME MORTGAGE CORP. 2 6.75% $5,893
    OCMBC, INC. 1 7.13% $9,553
    MORTGAGE SOLUTIONS OF COLORADO, LLC 1 6.75% $12,740
    Paramount Residential Mortgage Group, Inc. 1 6.63% $12,746
    LIBERTY HOME MORTGAGE CORPORATION 1 5.88% $13,564
    Lakeview Community Capital, LLC 1 6.25% $5,673
    KINECTA 1 6.00% $7,178
    Intrust Bank 1 5.88% $3,536
    PLAZA HOME MORTGAGE, INC. 1 6.50% $12,673
    PREMIA MORTGAGE, LLC 1 5.75% $7,547
    Presidential Bank, FSB 1 6.63% $10,936
    HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 1 6.49% $9,589
    HALLMARK HOME MORTGAGE, LLC 1 7.25% $9,075
    GUARANTEED RATE, INC. 1 5.75% $6,905
    GENEVA FINANCIAL, LLC 1 7.00% $6,336
    FIRST COMMUNITY MORTGAGE, INC. 1 5.99% $7,814
    Regions Bank 1 6.13% $6,541
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 1 6.63% $11,545
    RUOFF MORTGAGE COMPANY, INC. 1 5.50% $6,116
    EVERETT FINANCIAL, INC. 1 7.63% $9,165
    Simmons Bank 1 5.75% $11,754
    SIRVA MORTGAGE, INC. 1 6.63% $615
    COMMUNITYAMERICA 1 6.63% $8,360
    CHURCHILL MORTGAGE CORPORATION 1 7.13% $8,161
    T2 FINANCIAL LLC 1 5.75% $15,920
    CALCON MUTUAL MORTGAGE LLC 1 6.99% $11,788
    Wells Fargo Bank 1 6.25% $11,202
    Barrington Bank & Trust Company, N.A. 1 6.75% $5,459
    TOP FLITE FINANCIAL, INC. 1 6.75% $17,052
    TOWNE MORTGAGE COMPANY 1 6.13% $6,088
    Truist 1 6.25% $4,615
    American National Bank & Trust 1 6.25% $8,760
    Bank of England 1 6.25% $9,745
    Arvest Bank 1 5.50% $6,556
    Armed Forces Bank 1 6.75% $8,592
    NEW DAY FINANCIAL, LLC 1 7.13% $3,231
    M&T Bank 1 7.25% $6,187
    North American Savings Bank, F.S.B. 1 6.63% $8,234

    The top Wichita FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 147 FHA loans originated. Their average total fees are $9,047, which is $175 lower than the next largest lender, Sierra Pacific Mortgage Company, Inc..

    The lowest fee Wichita FHA lenders (with over 10 loans originated) are MID AMERICA MORTGAGE, INC. ($5,806), Fidelity Bank ($6,239), Mortgage Research Center, LLC ($6,604), American Mortgage Bank, LLC ($7,090) and Members Mortgage Services, L.L.C. ($7,249).

    The lowest rate Wichita FHA lenders (with over 10 loans originated) are PENTAGON FEDERAL CREDIT UNION (5.74%), UNITED WHOLESALE MORTGAGE, LLC (6.09%), PENNYMAC LOAN SERVICES, LLC (6.09%), Sunflower Bank (6.25%) and Flagstar Bank, FSB (6.26%).

    Wichita FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    WICHITA, KS BUTLER 2022 $420,680 $538,650 $651,050 $809,150
    WICHITA, KS HARVEY 2022 $420,680 $538,650 $651,050 $809,150
    WICHITA, KS SEDGWICK 2022 $420,680 $538,650 $651,050 $809,150
    WICHITA, KS SUMNER 2022 $420,680 $538,650 $651,050 $809,150
    WICHITA, KS BUTLER 2023 $472,030 $604,400 $730,525 $907,900
    WICHITA, KS HARVEY 2023 $472,030 $604,400 $730,525 $907,900
    WICHITA, KS SEDGWICK 2023 $472,030 $604,400 $730,525 $907,900
    WICHITA, KS SUMNER 2023 $472,030 $604,400 $730,525 $907,900

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Wichita (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 $174,900 (6.5%) $226,176 (3.6%) 0.65 1,965
    2018-02-01 $182,817 (9.2%) $234,420 (5.9%) 0.66 1,814
    2018-03-01 $192,500 (8.5%) $240,838 (5.6%) 0.68 1,790
    2018-04-01 $205,950 (11.4%) $251,315 (8.2%) 0.70 1,829
    2018-05-01 $205,000 (6.8%) $251,278 (5.1%) 0.68 1,964
    2018-06-01 $199,918 (5.3%) $252,181 (5.5%) 0.67 2,060
    2018-07-01 $200,813 (8.5%) $259,275 (9.8%) 0.67 2,040
    2018-08-01 $199,909 (9.6%) $259,770 (11.4%) 0.67 2,034
    2018-09-01 $192,900 (8.7%) $254,635 (11.7%) 0.65 2,084
    2018-10-01 $194,900 (12.8%) $253,801 (12.0%) 0.66 2,151
    2018-11-01 $185,000 (6.5%) $245,696 (9.2%) 0.63 2,145
    2018-12-01 $185,000 (7.3%) $244,024 (8.8%) 0.64 2,005
    2019-01-01 $188,588 (7.8%) $246,159 (8.8%) 0.65 1,878
    2019-02-01 $199,250 (9.0%) $257,751 (10.0%) 0.67 1,791
    2019-03-01 $206,100 (7.1%) $273,099 (13.4%) 0.67 1,761
    2019-04-01 $217,400 (5.6%) $281,186 (11.9%) 0.69 1,745
    2019-05-01 $222,875 (8.7%) $279,919 (11.4%) 0.70 1,763
    2019-06-01 $219,900 (10.0%) $278,135 (10.3%) 0.69 1,711
    2019-07-01 $209,950 (4.6%) $270,477 (4.3%) 0.66 1,761
    2019-08-01 $208,236 (4.2%) $268,351 (3.3%) 0.66 1,757
    2019-09-01 $209,228 (8.5%) $269,233 (5.7%) 0.67 1,727
    2019-10-01 $209,890 (7.7%) $269,821 (6.3%) 0.68 1,707
    2019-11-01 $207,650 (12.2%) $266,908 (8.6%) 0.68 1,594
    2019-12-01 $199,700 (8.0%) $260,578 (6.8%) 0.67 1,480
    2020-01-01 $199,469 (5.8%) $259,201 (5.3%) 0.67 1,388
    2020-02-01 $204,925 (2.9%) $268,510 (4.2%) 0.67 1,311
    2020-03-01 $212,375 (3.0%) $274,182 (0.4%) 0.67 1,266
    2020-04-01 $222,800 (2.5%) $279,870 (-0.5%) 0.70 1,236
    2020-05-01 $234,900 (5.4%) $286,376 (2.3%) 0.71 1,183
    2020-06-01 $248,350 (12.9%) $297,870 (7.1%) 0.73 1,069
    2020-07-01 $248,400 (18.3%) $299,324 (10.7%) 0.72 1,008
    2020-08-01 $245,000 (17.7%) $298,717 (11.3%) 0.70 1,000
    2020-09-01 $229,900 (9.9%) $285,977 (6.2%) 0.66 996
    2020-10-01 $229,900 (9.5%) $281,562 (4.4%) 0.66 1,045
    2020-11-01 $226,300 (9.0%) $278,005 (4.2%) 0.66 1,029
    2020-12-01 $220,000 (10.2%) $272,428 (4.6%) 0.65 915
    2021-01-01 $224,538 (12.6%) $277,484 (7.1%) 0.67 788
    2021-02-01 $243,076 (18.6%) $299,011 (11.4%) 0.71 637
    2021-03-01 $239,950 (13.0%) $301,509 (10.0%) 0.68 583
    2021-04-01 $239,000 (7.3%) $296,411 (5.9%) 0.65 534
    2021-05-01 $235,000 (0.0%) $288,391 (0.7%) 0.62 611
    2021-06-01 $223,463 (-10.0%) $285,072 (-4.3%) 0.59 686
    2021-07-01 $220,000 (-11.4%) $279,508 (-6.6%) 0.58 786
    2021-08-01 $215,000 (-12.2%) $278,071 (-6.9%) 0.57 882
    2021-09-01 $207,125 (-9.9%) $275,800 (-3.6%) 0.55 873
    2021-10-01 $220,000 (-4.3%) $280,920 (-0.2%) 0.59 873
    2021-11-01 $222,475 (-1.7%) $290,260 (4.4%) 0.59 785
    2021-12-01 $229,950 (4.5%) $291,896 (7.2%) 0.62 675
    2022-01-01 $244,965 (9.1%) $312,108 (12.5%) 0.66 550
    2022-02-01 $252,450 (3.9%) $313,959 (5.0%) 0.66 486
    2022-03-01 $254,900 (6.2%) $315,249 (4.6%) 0.64 490
    2022-04-01 $268,500 (12.3%) $318,018 (7.3%) 0.64 505
    2022-05-01 $269,950 (14.9%) $333,680 (15.7%) 0.62 562
    2022-06-01 $277,475 (24.2%) $341,232 (19.7%) 0.62 685
    2022-07-01 $280,000 (27.3%) $340,658 (21.9%) 0.63 840
    2022-08-01 $290,000 (34.9%) $342,925 (23.3%) 0.67 850
    2022-09-01 $290,130 (40.1%) $348,670 (26.4%) 0.68 850
    2022-10-01 $303,950 (38.2%) $352,023 (25.3%) 0.72 957
    2022-11-01 $290,000 (30.4%) $348,076 (19.9%) 0.70 1,031
    2022-12-01 $289,900 (26.1%) $349,198 (19.6%) 0.72 944
    2023-01-01 $299,000 (22.1%) $357,831 (14.7%) 0.74 891
    2023-02-01 $319,995 (26.8%) $365,473 (16.4%) 0.77 858
    2023-03-01 $319,621 (25.4%) $371,358 (17.8%) 0.75 879
    2023-04-01 $318,394 (18.6%) $372,478 (17.1%) 0.74 884
    2023-05-01 $320,000 (18.5%) $374,826 (12.3%) 0.73 898
    2023-06-01 $315,657 (13.8%) $373,542 (9.5%) 0.71 1,003
    2023-07-01 $300,850 (7.5%) $366,674 (7.6%) 0.68 1,028
    2023-08-01 $299,000 (3.1%) $356,654 (4.0%) 0.69 1,066
    2023-09-01 $299,000 (3.1%) $352,588 (1.1%) 0.70 1,167
    2023-10-01 $298,950 (-1.7%) $354,662 (0.8%) 0.70 1,238
    2023-11-01 $294,575 (1.6%) $355,842 (2.2%) 0.70 1,268
    2023-12-01 $294,900 (1.7%) $360,982 (3.4%) 0.72 1,162
    2024-01-01 $297,000 (-0.7%) $368,532 (3.0%) 0.73 1,046
    2024-02-01 $302,450 (-5.5%) $373,271 (2.1%) 0.73 1,015
    2024-03-01 $325,000 (1.7%) $377,793 (1.7%) 0.76 1,039
    2024-04-01 $324,900 (2.0%) $382,892 (2.8%) 0.76 1,112
    2024-05-01 $335,215 (4.8%) $389,989 (4.1%) 0.76 1,140
    2024-06-01 $315,690 (0.0%) $373,369 (-0.1%) 0.72 1,263
    2024-07-01 $310,500 (3.2%) $361,635 (-1.4%) 0.71 1,452
    2024-08-01 $300,000 (0.3%) $355,293 (-0.4%) 0.70 1,485
    2024-09-01 $292,700 (-2.1%) $357,962 (1.5%) 0.69 1,610
    2024-10-01 $290,000 (-3.0%) $356,048 (0.4%) 0.68 1,658
    2024-11-01 $291,000 (-1.2%) $352,313 (-1.0%) 0.70 1,710
    2024-12-01 $285,000 (-3.4%) $348,277 (-3.5%) 0.71 1,602
    2025-01-01 $290,200 (-2.3%) $349,770 (-5.1%) 0.72 1,495
    2025-02-01 $289,450 (-4.3%) $348,823 (-6.6%) 0.70 1,457
    2025-03-01 $294,900 (-9.3%) $353,995 (-6.3%) 0.69 1,467
    2025-04-01 $297,445 (-8.5%) $355,333 (-7.2%) 0.69 1,504
    Wichita's median listing price for 2025-04-01 was $297,445, a difference of $-27,455 (-8.5%) versus the prior year and $2,545 versus the prior month.

    Wichita's median listing price comes in at 69% of the national average.

    Wichita's average listing price for 2025-04-01 was $355,333, a difference of $-27,559 (-7.2%) versus the prior year and $1,338 versus the prior month.

    For the 2025-04-01 period, Wichita had 1,504 MLS listings, a difference of 37 listings (3%) versus the prior month and 392 listings (35%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Wichita (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 71 days 2,079 sqft
    2018-02-01 69 days 2,114 sqft
    2018-03-01 47 days 2,168 sqft
    2018-04-01 43 days 2,205 sqft
    2018-05-01 40 days 2,248 sqft
    2018-06-01 43 days 2,236 sqft
    2018-07-01 48 days 2,241 sqft
    2018-08-01 51 days 2,244 sqft
    2018-09-01 47 days 2,211 sqft
    2018-10-01 51 days 2,181 sqft
    2018-11-01 52 days 2,159 sqft
    2018-12-01 63 days 2,105 sqft
    2019-01-01 72 days 2,112 sqft
    2019-02-01 66 days 2,116 sqft
    2019-03-01 56 days 2,134 sqft
    2019-04-01 44 days 2,205 sqft
    2019-05-01 43 days 2,235 sqft
    2019-06-01 44 days 2,261 sqft
    2019-07-01 45 days 2,186 sqft
    2019-08-01 49 days 2,179 sqft
    2019-09-01 56 days 2,208 sqft
    2019-10-01 61 days 2,226 sqft
    2019-11-01 60 days 2,162 sqft
    2019-12-01 68 days 2,107 sqft
    2020-01-01 70 days 2,074 sqft
    2020-02-01 65 days 2,112 sqft
    2020-03-01 60 days 2,114 sqft
    2020-04-01 61 days 2,202 sqft
    2020-05-01 66 days 2,213 sqft
    2020-06-01 59 days 2,249 sqft
    2020-07-01 49 days 2,270 sqft
    2020-08-01 48 days 2,258 sqft
    2020-09-01 47 days 2,198 sqft
    2020-10-01 50 days 2,176 sqft
    2020-11-01 51 days 2,106 sqft
    2020-12-01 59 days 2,048 sqft
    2021-01-01 71 days 2,036 sqft
    2021-02-01 64 days 2,028 sqft
    2021-03-01 65 days 2,002 sqft
    2021-04-01 70 days 1,996 sqft
    2021-05-01 51 days 2,012 sqft
    2021-06-01 42 days 1,973 sqft
    2021-07-01 40 days 1,977 sqft
    2021-08-01 42 days 1,966 sqft
    2021-09-01 50 days 1,935 sqft
    2021-10-01 44 days 1,986 sqft
    2021-11-01 43 days 1,932 sqft
    2021-12-01 51 days 1,891 sqft
    2022-01-01 58 days 1,817 sqft
    2022-02-01 43 days 1,863 sqft
    2022-03-01 37 days 1,905 sqft
    2022-04-01 34 days 2,015 sqft
    2022-05-01 33 days 2,052 sqft
    2022-06-01 32 days 2,110 sqft
    2022-07-01 34 days 2,105 sqft
    2022-08-01 40 days 2,124 sqft
    2022-09-01 43 days 2,104 sqft
    2022-10-01 42 days 2,146 sqft
    2022-11-01 42 days 2,094 sqft
    2022-12-01 59 days 2,078 sqft
    2023-01-01 67 days 2,015 sqft
    2023-02-01 56 days 2,016 sqft
    2023-03-01 48 days 2,023 sqft
    2023-04-01 44 days 2,015 sqft
    2023-05-01 44 days 2,061 sqft
    2023-06-01 38 days 2,069 sqft
    2023-07-01 40 days 2,061 sqft
    2023-08-01 42 days 2,016 sqft
    2023-09-01 43 days 2,028 sqft
    2023-10-01 44 days 2,050 sqft
    2023-11-01 46 days 2,057 sqft
    2023-12-01 58 days 2,040 sqft
    2024-01-01 72 days 2,015 sqft
    2024-02-01 69 days 2,043 sqft
    2024-03-01 42 days 2,043 sqft
    2024-04-01 41 days 2,069 sqft
    2024-05-01 40 days 2,170 sqft
    2024-06-01 43 days 2,124 sqft
    2024-07-01 41 days 2,140 sqft
    2024-08-01 43 days 2,084 sqft
    2024-09-01 45 days 2,070 sqft
    2024-10-01 49 days 2,037 sqft
    2024-11-01 55 days 2,032 sqft
    2024-12-01 65 days 1,984 sqft
    2025-01-01 72 days 1,993 sqft
    2025-02-01 65 days 1,943 sqft
    2025-03-01 51 days 1,962 sqft
    2025-04-01 45 days 1,984 sqft
    Wichita's median listing age (time on market) for 2025-04-01 was 45 days. This is 8% longer than the same period one year ago.

    Wichita's median square footage for active listings during the 2025-04-01 period was 1,984 sqft. One year prior, the average listing was 2,069 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).