Winston FHA Loan Rates, Closing Costs & Stats

WINSTON-SALEM, NC

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 6.35% for the week of 2022-12-02, compared to the national average (all FHA variants) of 6.466% for the same period.

Winston's average FHA mortgage closing costs are $6,051.

The average rate for the prior week (2022-11-25) was 6.47% and one month ago for the week of 2022-10-28, the average rate was 6.71%.

The average rate one year ago was 3.24%.

For refis of the same type during the week of 2022-12-02, the average rate was 6.32%.

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/closing costs 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. Closing Costs
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
DHI MORTGAGE COMPANY, LTD. 34 2.76% $7,014
VILLAGE CAPITAL MORTGAGE 34 2.93% $2,406
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
HOMEBRIDGE FINANCIAL SERVICES, INC. 21 2.83% $5,452
NEWREZ LLC 21 3.05% $4,152
CROSSCOUNTRY MORTGAGE, LLC 21 3.14% $7,866
AMERISAVE MORTGAGE CORPORATION 21 3.10% $7,894
Lakeview Community Capital, LLC 20 2.99% $4,060
UNITED WHOLESALE MORTGAGE, LLC 20 2.76% $6,372
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
VANDERBILT MORTGAGE AND FINANCE, INC. 13 3.55% $8,833
PLAZA HOME MORTGAGE, INC. 13 2.68% $6,945
Alcova Mortgage LLC 12 3.26% $6,446
TOWNE MORTGAGE COMPANY 12 3.51% $6,847
PRIMARY RESIDENTIAL MORTGAGE, INC. 12 3.70% $8,107
InterContinental Capital Group, Inc 11 2.77% $7,172
Truist 11 3.14% $6,510
RESIDENTIAL MORTGAGE SERVICES, INC. 11 2.93% $6,603
EQUITY RESOURCES, INC. 10 3.14% $6,632
Wolfe Financial, Inc 10 3.38% $7,558
MCLEAN MORTGAGE CORPORATION 9 2.94% $6,565
Mortgage Research Center, LLC 9 3.22% $7,023
Bank of America 9 2.92% $4,750
AMERICAN FINANCIAL NETWORK, INC. 9 3.25% $9,618
Hometown Lenders, Inc. 9 3.47% $9,160
CMG MORTGAGE, INC. 8 3.00% $7,343
HOMESTAR FINANCIAL CORPORATION 8 3.16% $6,845
American Security Mortgage Corp. 8 2.61% $8,135
RELIANCE FIRST CAPITAL, LLC 8 3.14% $6,327
LOANPAL, LLC 8 2.94% $9,042
AMERIFIRST FINANCIAL CORPORATION 8 3.56% $7,598
U.S. Bank 7 2.98% $5,613
Citizens Bank 7 2.45% $6,822
Wells Fargo Bank 7 3.29% $5,056
SUN WEST MORTGAGE COMPANY, INC. 7 3.28% $5,314
PLANET HOME LENDING, LLC 7 3.16% $4,492
ARK-LA-TEX FINANCIAL SERVICES, LLC. 6 3.38% $8,401
MORTGAGE SOLUTIONS OF COLORADO, LLC 6 3.81% $6,768
NATIONS DIRECT MORTGAGE, LLC 6 2.88% $6,997
First-Citizens Bank & Trust Company 6 3.08% $5,887
MORTGAGE FINANCIAL GROUP, INC. 6 3.08% $8,472
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
HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 5 3.33% $5,872
ALLIED MORTGAGE GROUP, INC. 5 2.93% $7,846
Victorian Finance, LLC 5 2.93% $6,028
AMERICAN FINANCIAL RESOURCES, INC. 5 3.35% $8,325
KELLER MORTGAGE, LLC 5 2.83% $5,249
T2 FINANCIAL LLC 4 2.94% $7,657
Bank of England 4 2.78% $9,595
Alpha Mortgage Corporation 4 3.22% $6,332
RAPID MORTGAGE COMPANY 4 3.09% $7,307
INTERCOASTAL MORTGAGE COMPANY 4 2.97% $5,784
TOP FLITE FINANCIAL, INC. 4 3.22% $11,397
Equity Prime Mortgage LLC 4 3.56% $6,975
Flagstar Bank, FSB 4 2.89% $5,169
SIGNATURE MORTGAGE CORPORATION 4 3.13% $5,422
Paramount Residential Mortgage Group, Inc. 4 2.96% $7,592
PRIMELENDING, A PLAINSCAPITAL COMPANY 3 3.58% $7,520
GENEVA FINANCIAL, LLC 3 3.29% $6,684
SOUTHERN TRUST MORTGAGE, LLC 3 3.00% $8,212
EMBRACE HOME LOANS, INC. 3 3.13% $5,432
PNC Bank 3 2.75% $5,834
MUTUAL OF OMAHA MORTGAGE, INC. 3 3.04% $6,769
CORNERSTONE HOME LENDING, INC. 3 3.25% $6,045
CAPITAL CENTER, L.L.C. 3 2.63% $4,572
AMERICAN FINANCING CORPORATION 3 3.04% $5,105
ANGEL OAK HOME LOANS LLC 3 2.83% $7,182
HALLMARK HOME MORTGAGE, LLC 3 3.00% $7,096
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
MID AMERICA MORTGAGE, INC. 2 3.25% $6,505
M&T Bank 2 3.06% $6,480
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 MORTGAGE ($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 $204,529 (10.6%) $301,874 (14.5%) 0.76 2,074
2018-02-01 $218,925 (17.2%) $312,487 (16.4%) 0.79 2,034
2018-03-01 $228,335 (18.2%) $314,409 (13.3%) 0.80 2,104
2018-04-01 $233,118 (17.2%) $317,961 (11.9%) 0.79 2,158
2018-05-01 $239,371 (18.9%) $319,973 (11.2%) 0.80 2,231
2018-06-01 $240,000 (18.6%) $319,002 (10.8%) 0.80 2,275
2018-07-01 $243,495 (18.8%) $314,296 (6.9%) 0.81 2,351
2018-08-01 $238,820 (19.4%) $305,456 (3.4%) 0.80 2,153
2018-09-01 $239,000 (19.6%) $305,246 (4.2%) 0.80 2,177
2018-10-01 $239,900 (17.9%) $304,328 (1.7%) 0.81 2,165
2018-11-01 $232,400 (12.0%) $298,331 (-1.1%) 0.79 2,105
2018-12-01 $229,900 (15.0%) $296,701 (-0.4%) 0.79 1,891
2019-01-01 $234,675 (14.7%) $300,206 (-0.6%) 0.81 1,762
2019-02-01 $242,440 (10.7%) $310,806 (-0.5%) 0.82 1,697
2019-03-01 $255,471 (11.9%) $322,113 (2.5%) 0.84 1,754
2019-04-01 $268,267 (15.1%) $333,688 (5.0%) 0.85 1,793
2019-05-01 $273,725 (14.4%) $338,731 (5.9%) 0.86 1,860
2019-06-01 $275,000 (14.6%) $343,713 (7.8%) 0.86 1,869
2019-07-01 $275,000 (12.9%) $345,423 (9.9%) 0.86 1,844
2019-08-01 $276,847 (15.9%) $345,101 (13.0%) 0.88 1,863
2019-09-01 $274,368 (14.8%) $344,680 (12.9%) 0.88 1,898
2019-10-01 $273,995 (14.2%) $347,262 (14.1%) 0.88 1,901
2019-11-01 $274,900 (18.3%) $349,033 (17.0%) 0.90 1,790
2019-12-01 $270,000 (17.4%) $346,330 (16.7%) 0.90 1,630
2020-01-01 $269,950 (15.0%) $348,008 (15.9%) 0.90 1,531
2020-02-01 $289,900 (19.6%) $368,142 (18.5%) 0.95 1,420
2020-03-01 $288,588 (13.0%) $366,043 (13.6%) 0.90 1,443
2020-04-01 $283,613 (5.7%) $365,135 (9.4%) 0.89 1,525
2020-05-01 $299,500 (9.4%) $381,073 (12.5%) 0.91 1,371
2020-06-01 $300,217 (9.2%) $390,288 (13.6%) 0.88 1,239
2020-07-01 $309,358 (12.5%) $398,478 (15.4%) 0.90 1,119
2020-08-01 $300,516 (8.6%) $386,289 (11.9%) 0.86 1,061
2020-09-01 $299,000 (9.0%) $370,703 (7.6%) 0.86 1,087
2020-10-01 $299,900 (9.5%) $375,217 (8.1%) 0.86 1,070
2020-11-01 $279,675 (1.7%) $352,590 (1.0%) 0.82 984
2020-12-01 $269,450 (-0.2%) $352,269 (1.7%) 0.80 894
2021-01-01 $271,445 (0.6%) $350,870 (0.8%) 0.81 788
2021-02-01 $280,285 (-3.3%) $362,300 (-1.6%) 0.81 686
2021-03-01 $282,248 (-2.2%) $380,248 (3.9%) 0.80 658
2021-04-01 $278,548 (-1.8%) $376,381 (3.1%) 0.75 648
2021-05-01 $265,000 (-11.5%) $355,098 (-6.8%) 0.70 660
2021-06-01 $267,450 (-10.9%) $354,014 (-9.3%) 0.70 731
2021-07-01 $274,317 (-11.3%) $349,850 (-12.2%) 0.72 776
2021-08-01 $267,400 (-11.0%) $341,104 (-11.7%) 0.71 822
2021-09-01 $267,900 (-10.4%) $340,613 (-8.1%) 0.71 890
2021-10-01 $269,900 (-10.0%) $346,302 (-7.7%) 0.72 897
2021-11-01 $275,000 (-1.7%) $345,330 (-2.1%) 0.73 840
2021-12-01 $269,448 (0.0%) $340,633 (-3.3%) 0.73 703
2022-01-01 $290,328 (7.0%) $368,018 (4.9%) 0.78 579
2022-02-01 $292,375 (4.3%) $372,351 (2.8%) 0.76 536
2022-03-01 $287,450 (1.8%) $367,104 (-3.5%) 0.72 576
2022-04-01 $299,900 (7.7%) $371,849 (-1.2%) 0.72 610
2022-05-01 $303,095 (14.4%) $374,963 (5.6%) 0.69 768
2022-06-01 $317,400 (18.7%) $382,174 (8.0%) 0.71 844
2022-07-01 $320,000 (16.7%) $379,996 (8.6%) 0.72 943
2022-08-01 $318,643 (19.2%) $368,146 (7.9%) 0.74 1,022
2022-09-01 $314,950 (17.6%) $367,582 (7.9%) 0.74 1,017
2022-10-01 $319,990 (18.6%) $373,616 (7.9%) 0.75 1,097
2022-11-01 $320,075 (16.4%) $373,767 (8.2%) 0.77 1,091
Winston's median listing price for 2022-11-01 was $320,075, a difference of $45,075 (16.4%) versus the prior year and $85 versus the prior month.

Winston's median listing price comes in at 77% of the national average.

Winston's average listing price for 2022-11-01 was $373,767, a difference of $28,437 (8.2%) versus the prior year and $151 versus the prior month.

For the 2022-11-01 period, Winston had 1,091 MLS listings, a difference of -6 listings (-1%) versus the prior month and 251 listings (30%) 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 1,997 sqft
2018-02-01 100 days 2,102 sqft
2018-03-01 72 days 2,135 sqft
2018-04-01 68 days 2,161 sqft
2018-05-01 65 days 2,197 sqft
2018-06-01 65 days 2,218 sqft
2018-07-01 70 days 2,245 sqft
2018-08-01 68 days 2,216 sqft
2018-09-01 71 days 2,209 sqft
2018-10-01 74 days 2,174 sqft
2018-11-01 79 days 2,109 sqft
2018-12-01 93 days 2,080 sqft
2019-01-01 99 days 2,085 sqft
2019-02-01 97 days 2,139 sqft
2019-03-01 78 days 2,192 sqft
2019-04-01 58 days 2,208 sqft
2019-05-01 57 days 2,133 sqft
2019-06-01 62 days 2,345 sqft
2019-07-01 68 days 2,242 sqft
2019-08-01 70 days 2,244 sqft
2019-09-01 67 days 2,233 sqft
2019-10-01 65 days 2,246 sqft
2019-11-01 71 days 2,270 sqft
2019-12-01 81 days 2,233 sqft
2020-01-01 86 days 2,137 sqft
2020-02-01 86 days 2,184 sqft
2020-03-01 59 days 2,149 sqft
2020-04-01 55 days 2,468 sqft
2020-05-01 70 days 2,577 sqft
2020-06-01 75 days 2,591 sqft
2020-07-01 65 days 2,742 sqft
2020-08-01 57 days 2,504 sqft
2020-09-01 45 days 2,441 sqft
2020-10-01 50 days 2,492 sqft
2020-11-01 71 days 2,347 sqft
2020-12-01 87 days 1,950 sqft
2021-01-01 85 days 2,050 sqft
2021-02-01 79 days 1,934 sqft
2021-03-01 48 days 1,994 sqft
2021-04-01 50 days 1,836 sqft
2021-05-01 60 days 1,997 sqft
2021-06-01 48 days 1,887 sqft
2021-07-01 50 days 1,848 sqft
2021-08-01 38 days 1,870 sqft
2021-09-01 37 days 1,853 sqft
2021-10-01 39 days 1,804 sqft
2021-11-01 47 days 1,797 sqft
2021-12-01 53 days 1,773 sqft
2022-01-01 59 days 1,752 sqft
2022-02-01 51 days 1,721 sqft
2022-03-01 34 days 1,892 sqft
2022-04-01 36 days 1,916 sqft
2022-05-01 36 days 1,969 sqft
2022-06-01 37 days 1,982 sqft
2022-07-01 39 days 2,057 sqft
2022-08-01 43 days 1,934 sqft
2022-09-01 46 days 1,947 sqft
2022-10-01 45 days 1,994 sqft
2022-11-01 52 days 2,100 sqft
Winston's median listing age (time on market) for 2022-11-01 was 52 days. This is 10% longer than the same period one year ago.

Winston's median square footage for active listings during the 2022-11-01 period was 2,100 sqft. One year prior, the average listing was 1,797 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).