Winston FHA Loans

WINSTON-SALEM, NC

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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.

    Winston's 180 lenders originated 2,947 FHA loans during 2021. The total origination value was $562,105,000, with an average FHA loan value of $190,738.

    Winston FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Winston averaged 5.35% for the week of 2022-05-13, compared to the national average (all FHA variants) of 5.361% for the same period.

    The average rate for the prior week (2022-05-06) was 5.18% and one month ago for the week of 2022-04-08, the average rate was 5.14%.

    The average rate one year ago was 3.05%.

    For refis of the same type during the week of 2022-05-13, the average rate was 5.31%.

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

    Winston 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 Winston level.

    Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
    QUICKEN LOANS, LLC 438 2.72% $5,927
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 289 3.23% $6,745
    MOVEMENT MORTGAGE, LLC 183 3.10% $6,862
    ATLANTIC BAY MORTGAGE GROUP, L.L.C. 118 3.38% $8,157
    CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 93 3.38% $8,770
    LAKEVIEW LOAN SERVICING, LLC 85 3.02% $4,025
    PENNYMAC LOAN SERVICES, LLC 68 2.99% $4,318
    FREEDOM MORTGAGE CORPORATION 65 2.87% $4,597
    Mr. Cooper ( Nationstar Mortgage ) 61 3.32% $3,311
    CALIBER HOME LOANS, INC. 51 3.11% $6,561
    LOANDEPOT.COM, LLC 48 3.55% $7,155
    Carrington Mortgage Services, LLC 36 3.49% $7,263
    VILLAGE CAPITAL & INVESTMENT LLC 34 2.93% $2,406
    DHI MORTGAGE COMPANY, LTD. 34 2.76% $7,014
    GUARANTEED RATE, INC. 33 2.93% $6,944
    Ameris Bank 30 3.09% $7,214
    CERTAINTY HOME LOANS, LLC 26 3.10% $7,262
    HAMILTON HOME LOANS, INC. 25 3.05% $8,355
    HOMESIDE FINANCIAL, LLC 24 3.24% $7,322
    INSPIRE HOME LOANS INC. 23 3.22% $6,573
    CROSSCOUNTRY MORTGAGE, LLC 21 3.14% $7,866
    NEWREZ LLC 21 3.05% $4,152
    AMERISAVE MORTGAGE CORPORATION 21 3.10% $7,894
    HOMEBRIDGE FINANCIAL SERVICES, INC. 21 2.83% $5,452
    UNITED WHOLESALE MORTGAGE, LLC 20 2.76% $6,372
    Lakeview Community Capital, LLC 20 2.99% $4,060
    Blue Ridge Bank 20 3.34% $7,215
    BROKER SOLUTIONS, INC. 19 3.20% $7,443
    UNION HOME MORTGAGE CORP. 18 3.06% $7,924
    Prosperity Home Mortgage, LLC 17 3.54% $6,855
    HOME POINT FINANCIAL CORPORATION 17 2.83% $5,746
    Allen Tate Mortgage Partners, LLC 16 3.20% $7,588
    NFM, INC. 15 3.53% $7,284
    AmeriHome Mortgage Company, LLC 15 3.00% $4,238
    Nations Lending Corporation 14 3.60% $8,928
    PLAZA HOME MORTGAGE, INC. 13 2.68% $6,945
    VANDERBILT MORTGAGE AND FINANCE, INC. 13 3.55% $8,833
    TOWNE MORTGAGE COMPANY 12 3.51% $6,847
    PRIMARY RESIDENTIAL MORTGAGE, INC. 12 3.70% $8,107
    Alcova Mortgage LLC 12 3.26% $6,446
    RESIDENTIAL MORTGAGE SERVICES, INC. 11 2.93% $6,603
    Truist Bank 11 3.14% $6,510
    InterContinental Capital Group, Inc 11 2.77% $7,172
    EQUITY RESOURCES, INC. 10 3.14% $6,632
    Wolfe Financial, Inc 10 3.38% $7,558
    Mortgage Research Center, LLC 9 3.22% $7,023
    MCLEAN MORTGAGE CORPORATION 9 2.94% $6,565
    Hometown Lenders, Inc. 9 3.47% $9,160
    Bank of America 9 2.92% $4,750
    AMERICAN FINANCIAL NETWORK, INC. 9 3.25% $9,618
    LOANPAL, LLC 8 2.94% $9,042
    CMG MORTGAGE, INC. 8 3.00% $7,343
    RELIANCE FIRST CAPITAL, LLC 8 3.14% $6,327
    HOMESTAR FINANCIAL CORPORATION 8 3.16% $6,845
    American Security Mortgage Corp. 8 2.61% $8,135
    AMERIFIRST FINANCIAL CORPORATION 8 3.56% $7,598
    PLANET HOME LENDING, LLC 7 3.16% $4,492
    Wells Fargo Bank 7 3.29% $5,056
    SUN WEST MORTGAGE COMPANY, INC. 7 3.28% $5,314
    Citizens Bank 7 2.45% $6,822
    U.S. Bank 7 2.98% $5,613
    First-Citizens Bank & Trust Company 6 3.08% $5,887
    NATIONS DIRECT MORTGAGE, LLC 6 2.88% $6,997
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 6 3.38% $8,401
    MORTGAGE FINANCIAL GROUP, INC. 6 3.08% $8,472
    MORTGAGE SOLUTIONS OF COLORADO, LLC 6 3.81% $6,768
    Victorian Finance, LLC 5 2.93% $6,028
    HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 5 3.33% $5,872
    Truliant Federal Credit Union 5 2.98% $5,208
    First Guaranty Mortgage Corporation 5 3.23% $4,449
    Gateway First Bank 5 3.90% $7,006
    AMERICAN FINANCIAL RESOURCES, INC. 5 3.35% $8,325
    KELLER MORTGAGE, LLC 5 2.83% $5,249
    ALLIED MORTGAGE GROUP, INC. 5 2.93% $7,846
    SIGNATURE MORTGAGE CORPORATION 4 3.13% $5,422
    Equity Prime Mortgage LLC 4 3.56% $6,975
    TOP FLITE FINANCIAL, INC. 4 3.22% $11,397
    T2 FINANCIAL LLC 4 2.94% $7,657
    Alpha Mortgage Corporation 4 3.22% $6,332
    Flagstar Bank, FSB 4 2.89% $5,169
    RAPID MORTGAGE COMPANY 4 3.09% $7,307
    Bank of England 4 2.78% $9,595
    INTERCOASTAL MORTGAGE COMPANY 4 2.97% $5,784
    Paramount Residential Mortgage Group, Inc. 4 2.96% $7,592
    MUTUAL OF OMAHA MORTGAGE, INC. 3 3.04% $6,769
    PNC Bank 3 2.75% $5,834
    ANGEL OAK HOME LOANS LLC 3 2.83% $7,182
    HALLMARK HOME MORTGAGE, LLC 3 3.00% $7,096
    PRIMELENDING, A PLAINSCAPITAL COMPANY 3 3.58% $7,520
    EMBRACE HOME LOANS, INC. 3 3.13% $5,432
    AMERICAN FINANCING CORPORATION 3 3.04% $5,105
    CAPITAL CENTER, L.L.C. 3 2.63% $4,572
    GENEVA FINANCIAL, LLC 3 3.29% $6,684
    SOUTHERN TRUST MORTGAGE, LLC 3 3.00% $8,212
    CORNERSTONE HOME LENDING, INC. 3 3.25% $6,045
    JPMorgan Chase Bank 3 3.29% $2,592
    ZILLOW HOME LOANS, LLC 2 3.06% $7,454
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 2 3.44% $6,571
    Austin Capital Bank SSB 2 3.06% $6,735
    BETTER MORTGAGE CORPORATION 2 2.75% $6,782
    CALCON MUTUAL MORTGAGE LLC 2 3.56% $9,524
    CITY FIRST MORTGAGE SERVICES, L.L.C. 2 3.31% $5,961
    Colten Mortgage, LLC 2 3.38% $5,289
    JET HOMELOANS, LLC 2 3.63% $7,091
    LIBERTY HOME MORTGAGE CORPORATION 2 2.88% $7,510
    LOANLEADERS OF AMERICA, INC. 2 3.19% $10,733
    Low VA Rates, LLC 2 2.94% $4,379
    Magnolia Bank 2 3.63% $5,005
    Manufacturers and Traders Trust Company 2 3.06% $6,480
    MID AMERICA MORTGAGE, INC. 2 3.25% $6,505
    NATIONWIDE MORTGAGE BANKERS, INC. 2 3.25% $6,120
    OCEANSIDE MORTGAGE COMPANY 2 2.99% $2,045
    Pinnacle Bank 2 3.31% $7,788
    POLARIS HOME FUNDING CORP. 2 3.31% $8,833
    Renasant Bank 2 2.81% $6,895
    RUOFF MORTGAGE COMPANY, INC. 2 3.19% $4,375
    SECURITYNATIONAL MORTGAGE COMPANY 2 3.44% $9,377
    Southern First Bank 2 2.88% $6,987
    SOUTHPOINT FINANCIAL SERVICES, INC. 2 2.63% $13,998
    SOVEREIGN LENDING GROUP INCORPORATED 2 3.00% $8,990
    SUCCESS MORTGAGE PARTNERS, INC. 2 3.69% $7,908
    The Federal Savings Bank 2 2.63% $13,265
    TOTAL MORTGAGE SERVICES, LLC 2 3.75% $9,877
    UNITED SECURITY FINANCIAL CORP 2 2.75% $4,682
    VAN DYK MORTGAGE CORPORATION 2 3.00% $5,154
    Plains Commerce Bank 1 3.13% $7,078
    LADERA LENDING, INC. 1 3.75% $6,295
    Keystone Funding, Inc. 1 2.38% $5,263
    HOMESPIRE MORTGAGE CORPORATION 1 2.88% $9,217
    ACADEMY MORTGAGE CORPORATION 1 3.25% $6,101
    Home Mortgage Alliance Corp 1 3.75% $6,048
    GUILD MORTGAGE COMPANY 1 4.00% $6,925
    GUARANTEED RATE AFFINITY, LLC 1 2.75% $5,687
    GoPrime Mortgage, Inc. 1 3.63% $7,679
    RADIUS FINANCIAL GROUP INC. 1 2.75% $10,843
    Goldwater Bank, N.A. 1 3.63% $11,862
    First Savings Bank 1 3.75% $10,943
    CREDIT UNION MORTGAGE ASSOCIATION, INC. 1 2.75% $5,213
    First National Bank of Pennsylvania 1 2.63% $5,151
    Residential Mortgage Solutions, Inc. 1 3.50% $8,090
    RESOURCE FINANCIAL SERVICES, INC. 1 2.88% $5,279
    ROYAL UNITED MORTGAGE LLC 1 3.25% $8,558
    Credence Funding Corporation 1 3.13% $4,872
    Uwharrie Bank 1 3.50% $5,804
    Shamrock Home Loans, Inc. 1 3.38% $8,864
    SHELTER HOME MORTGAGE, LLC 1 3.25% $7,461
    First Home Bank 1 3.25% $7,233
    Colonial Savings, F.A. 1 2.63% $5,994
    First Heritage Mortgage, LLC 1 4.13% $8,544
    1ST SIGNATURE LENDING, LLC 1 2.75% $6,588
    Barrington Bank & Trust Company, N.A. 1 3.88% $6,018
    Strong Home Mortgage, LLC 1 2.38% $6,518
    Assurance Financial Group, L.L.C. 1 2.88% $6,204
    First Federal Bank 1 2.50% $11,612
    Fifth Third Bank 1 2.75% $8,418
    The Central Trust Bank 1 3.50% $8,133
    AmRes Corporation 1 3.63% $10,840
    The Fidelity Bank 1 2.75% $5,553
    FBC MORTGAGE, LLC 1 2.75% $4,618
    Willamette Valley Bank 1 3.25% $10,593
    Towne Bank 1 3.00% $5,837
    FAY SERVICING, LLC 1 3.00% $5,803
    Triumph Bank 1 2.63% $11,146
    ENVOY MORTGAGE, LTD 1 2.75% $7,422
    EMM LOANS LLC 1 2.88% $10,124
    DAS Acquisition Company, LLC 1 3.75% $3,962
    Mortgage Assurance Inc. 1 2.38% $8,148
    MILEND, INC. 1 3.25% $6,966
    Northpointe Bank 1 2.50% $14,193
    NP, Inc. 1 2.63% $13,478
    United Fidelity Funding Corp. 1 3.25% $6,386
    OCMBC, INC. 1 2.88% $5,824
    ON Q FINANCIAL, INC. 1 3.25% $9,437
    OPEN MORTGAGE, LLC 1 3.25% $4,117
    PANORAMA MORTGAGE GROUP, LLC 1 3.88% $8,132
    MIDLAND MORTGAGE CORPORATION 1 3.25% $11,526
    LENDUS, LLC 1 3.75% $7,498
    Peoples Bank 1 3.63% $7,987
    PHH Mortgage Corporation 1 4.13% $3,052
    UNITED MORTGAGE CORP. 1 3.00% $7,605

    The top Winston FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 438 FHA loans originated. Their average total fees are $5,927, which is $818 lower than the next largest lender, FAIRWAY INDEPENDENT MORTGAGE CORPORATION.

    The lowest fee Winston FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL & INVESTMENT LLC ($2,406), Mr. Cooper ( Nationstar Mortgage ) ($3,311), LAKEVIEW LOAN SERVICING, LLC ($4,025), Lakeview Community Capital, LLC ($4,060) and NEWREZ LLC ($4,152).

    The lowest rate Winston FHA lenders (with over 10 loans originated) are PLAZA HOME MORTGAGE, INC. (2.68%), QUICKEN LOANS, LLC (2.72%), UNITED WHOLESALE MORTGAGE, LLC (2.76%), DHI MORTGAGE COMPANY, LTD. (2.76%) and InterContinental Capital Group, Inc (2.77%).

    Winston FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    WINSTON-SALEM, NC DAVIDSON 2022 $420,680 $538,650 $651,050 $809,150
    WINSTON-SALEM, NC DAVIE 2022 $420,680 $538,650 $651,050 $809,150
    WINSTON-SALEM, NC FORSYTH 2022 $420,680 $538,650 $651,050 $809,150
    WINSTON-SALEM, NC STOKES 2022 $420,680 $538,650 $651,050 $809,150
    WINSTON-SALEM, NC YADKIN 2022 $420,680 $538,650 $651,050 $809,150

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Winston (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 $207,250 (10.3%) $304,390 (12.4%) 0.76 2,124
    2018-02-01 $222,400 (17.2%) $314,575 (13.9%) 0.80 2,085
    2018-03-01 $229,900 (17.3%) $318,136 (12.5%) 0.80 2,147
    2018-04-01 $234,450 (17.8%) $322,228 (12.6%) 0.79 2,206
    2018-05-01 $239,950 (15.5%) $324,832 (11.8%) 0.80 2,279
    2018-06-01 $242,500 (14.2%) $323,125 (10.5%) 0.81 2,323
    2018-07-01 $244,900 (14.2%) $320,947 (7.6%) 0.82 2,401
    2018-08-01 $241,448 (14.3%) $311,559 (3.7%) 0.81 2,209
    2018-09-01 $239,900 (17.0%) $311,401 (4.5%) 0.80 2,229
    2018-10-01 $239,250 (14.0%) $309,712 (2.2%) 0.80 2,227
    2018-11-01 $230,603 (10.1%) $302,180 (-0.5%) 0.77 2,159
    2018-12-01 $229,900 (15.0%) $301,697 (0.3%) 0.79 1,943
    2019-01-01 $234,900 (13.3%) $306,210 (0.6%) 0.81 1,802
    2019-02-01 $241,945 (8.8%) $316,058 (0.5%) 0.81 1,738
    2019-03-01 $255,939 (11.3%) $329,787 (3.7%) 0.83 1,790
    2019-04-01 $269,445 (14.9%) $343,080 (6.5%) 0.85 1,817
    2019-05-01 $274,700 (14.5%) $346,400 (6.6%) 0.85 1,886
    2019-06-01 $279,000 (15.1%) $352,538 (9.1%) 0.86 1,892
    2019-07-01 $279,450 (14.1%) $354,031 (10.3%) 0.87 1,885
    2019-08-01 $277,857 (15.1%) $352,204 (13.1%) 0.87 1,872
    2019-09-01 $277,807 (15.8%) $349,969 (12.4%) 0.88 1,877
    2019-10-01 $282,450 (18.1%) $356,454 (15.1%) 0.90 1,926
    2019-11-01 $279,000 (21.0%) $356,840 (18.1%) 0.90 1,841
    2019-12-01 $275,495 (19.8%) $354,979 (17.7%) 0.92 1,677
    2020-01-01 $274,495 (16.9%) $356,852 (16.5%) 0.92 1,584
    2020-02-01 $295,000 (21.9%) $378,755 (19.8%) 0.95 1,457
    2020-03-01 $297,400 (16.2%) $379,112 (15.0%) 0.93 1,463
    2020-04-01 $289,900 (7.6%) $376,137 (9.6%) 0.90 1,541
    2020-05-01 $302,760 (10.2%) $395,667 (14.2%) 0.92 1,389
    2020-06-01 $307,445 (10.2%) $402,987 (14.3%) 0.90 1,246
    2020-07-01 $315,000 (12.7%) $412,790 (16.6%) 0.90 1,121
    2020-08-01 $309,400 (11.4%) $396,670 (12.6%) 0.88 1,028
    2020-09-01 $300,813 (8.3%) $378,915 (8.3%) 0.86 1,017
    2020-10-01 $304,780 (7.9%) $383,675 (7.6%) 0.87 995
    2020-11-01 $293,950 (5.4%) $377,912 (5.9%) 0.84 923
    2020-12-01 $288,450 (4.7%) $384,499 (8.3%) 0.85 832
    2021-01-01 $291,990 (6.4%) $379,671 (6.4%) 0.86 741
    2021-02-01 $296,148 (0.4%) $390,451 (3.1%) 0.85 630
    2021-03-01 $284,208 (-4.4%) $393,881 (3.9%) 0.80 586
    2021-04-01 $281,973 (-2.7%) $398,060 (5.8%) 0.76 571
    2021-05-01 $266,990 (-11.8%) $381,273 (-3.6%) 0.70 580
    2021-06-01 $272,250 (-11.5%) $377,758 (-6.3%) 0.71 649
    2021-07-01 $278,500 (-11.6%) $371,874 (-9.9%) 0.72 701
    2021-08-01 $270,950 (-12.4%) $358,584 (-9.6%) 0.71 782
    2021-09-01 $272,400 (-9.5%) $355,799 (-6.1%) 0.72 829
    2021-10-01 $274,999 (-9.8%) $351,624 (-8.4%) 0.72 830
    2021-11-01 $279,950 (-4.8%) $356,278 (-5.7%) 0.74 756
    2021-12-01 $272,500 (-5.5%) $349,210 (-9.2%) 0.73 612
    2022-01-01 $295,000 (1.0%) $379,103 (-0.2%) 0.79 486
    2022-02-01 $294,115 (-0.7%) $372,976 (-4.5%) 0.75 433
    2022-03-01 $291,700 (2.6%) $373,602 (-5.2%) 0.72 427
    2022-04-01 $298,490 (5.9%) $375,388 (-5.7%) 0.70 439
    Winston's median listing price for 2022-04-01 was $298,490, a difference of $16,517 (5.9%) versus the prior year and $6,790 versus the prior month.

    Winston's median listing price comes in at 70% of the national average.

    Winston's average listing price for 2022-04-01 was $375,388, a difference of $-22,672 (-5.7%) versus the prior year and $1,786 versus the prior month.

    For the 2022-04-01 period, Winston had 439 MLS listings, a difference of 12 listings (3%) versus the prior month and -132 listings (-23%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Winston (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 101 days 2,158 sqft
    2018-02-01 99 days 2,125 sqft
    2018-03-01 72 days 2,140 sqft
    2018-04-01 68 days 2,168 sqft
    2018-05-01 66 days 2,191 sqft
    2018-06-01 65 days 2,208 sqft
    2018-07-01 70 days 2,231 sqft
    2018-08-01 68 days 2,201 sqft
    2018-09-01 69 days 2,200 sqft
    2018-10-01 74 days 2,156 sqft
    2018-11-01 80 days 2,097 sqft
    2018-12-01 93 days 2,081 sqft
    2019-01-01 99 days 2,091 sqft
    2019-02-01 96 days 2,140 sqft
    2019-03-01 63 days 2,124 sqft
    2019-04-01 57 days 2,135 sqft
    2019-05-01 58 days 2,030 sqft
    2019-06-01 64 days 2,426 sqft
    2019-07-01 66 days 2,287 sqft
    2019-08-01 69 days 2,416 sqft
    2019-09-01 66 days 2,457 sqft
    2019-10-01 65 days 2,195 sqft
    2019-11-01 68 days 2,360 sqft
    2019-12-01 78 days 2,341 sqft
    2020-01-01 85 days 2,180 sqft
    2020-02-01 84 days 2,140 sqft
    2020-03-01 59 days 2,042 sqft
    2020-04-01 54 days 2,231 sqft
    2020-05-01 67 days 2,570 sqft
    2020-06-01 74 days 2,671 sqft
    2020-07-01 63 days 2,758 sqft
    2020-08-01 58 days 2,596 sqft
    2020-09-01 51 days 2,882 sqft
    2020-10-01 49 days 2,904 sqft
    2020-11-01 52 days 2,492 sqft
    2020-12-01 61 days 2,154 sqft
    2021-01-01 61 days 2,332 sqft
    2021-02-01 59 days 2,618 sqft
    2021-03-01 51 days 2,683 sqft
    2021-04-01 41 days 2,088 sqft
    2021-05-01 39 days 2,134 sqft
    2021-06-01 38 days 2,346 sqft
    2021-07-01 35 days 1,925 sqft
    2021-08-01 37 days 2,000 sqft
    2021-09-01 39 days 1,910 sqft
    2021-10-01 41 days 1,811 sqft
    2021-11-01 44 days 1,870 sqft
    2021-12-01 50 days 1,876 sqft
    2022-01-01 52 days 1,794 sqft
    2022-02-01 43 days 1,853 sqft
    2022-03-01 36 days 1,988 sqft
    2022-04-01 34 days 1,885 sqft
    Winston's median listing age (time on market) for 2022-04-01 was 34 days. This is -17% shorter than the same period one year ago.

    Winston's median square footage for active listings during the 2022-04-01 period was 1,885 sqft. One year prior, the average listing was 2,088 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).