Worcester FHA Loan Rates, Closing Costs & Stats

WORCESTER, MA-CT

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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.

    Worcester's 139 lenders originated 1,877 FHA loans during 2023. The total origination value was $646,755,000, with an average FHA loan value of $344,568.

    Worcester FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Worcester averaged 6.68% for the week of 2024-04-19, compared to the national average (all FHA variants) of 6.855% for the same period.

    Worcester's average FHA mortgage closing costs are $9,157.

    The average rate for the prior week (2024-04-12) was 6.77% and one month ago for the week of 2024-03-15, the average rate was 6.64%.

    The average rate one year ago was 6.16%.

    For refis of the same type during the week of 2024-04-19, the average rate was 6.62%.

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

    Worcester 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 Worcester level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    UNITED WHOLESALE MORTGAGE, LLC 201 6.49% $14,446
    QUICKEN LOANS, LLC 163 6.25% $13,721
    GUARANTEED RATE, INC. 100 6.85% $14,263
    TOTAL MORTGAGE SERVICES, LLC 92 6.78% $15,057
    CROSSCOUNTRY MORTGAGE, LLC 82 6.71% $15,604
    GUILD MORTGAGE COMPANY 66 6.71% $14,305
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 65 6.95% $12,957
    MOVEMENT MORTGAGE, LLC 42 6.66% $15,451
    LOANDEPOT.COM, LLC 41 6.41% $15,412
    Paramount Residential Mortgage Group, Inc. 39 6.80% $12,955
    BROKER SOLUTIONS, INC. 35 6.72% $14,864
    CMG MORTGAGE, INC. 35 6.87% $13,222
    NEWREZ LLC 32 6.38% $15,250
    ENVOY MORTGAGE, LTD 32 6.68% $15,254
    NORWICH COMMERCIAL GROUP, INC. 29 6.76% $12,457
    Leader Bank 25 6.41% $11,597
    FREEDOM MORTGAGE CORPORATION 25 6.86% $17,038
    PENNYMAC LOAN SERVICES, LLC 24 5.91% $15,903
    DREW MORTGAGE ASSOCIATES, INC. 23 6.61% $13,924
    Mr. Cooper ( Nationstar Mortgage ) 23 6.11% $19,894
    RADIUS FINANCIAL GROUP INC. 23 6.79% $16,757
    Plains Commerce Bank 19 6.78% $12,362
    AMERISAVE MORTGAGE CORPORATION 18 5.97% $16,530
    MORTGAGE EQUITY PARTNERS LLC 18 6.75% $16,986
    PRIMARY RESIDENTIAL MORTGAGE, INC. 17 7.07% $19,078
    HOMEBRIDGE FINANCIAL SERVICES, INC. 15 6.48% $12,290
    Nations Lending Corporation 14 7.25% $12,436
    T2 FINANCIAL LLC 14 7.34% $14,604
    Shamrock Home Loans, Inc. 14 6.92% $13,246
    Citizens Bank 14 6.63% $13,414
    LEADERONE FINANCIAL CORPORATION 13 6.92% $10,783
    NORTHPOINT MORTGAGE, INC. 13 6.53% $13,557
    SALEM FIVE MORTGAGE COMPANY, LLC 13 6.76% $11,603
    GUARANTEED RATE AFFINITY, LLC 12 6.91% $13,777
    EMM LOANS LLC 12 6.65% $17,058
    Sierra Pacific Mortgage Company, Inc. 12 6.84% $15,490
    OCMBC, INC. 12 6.77% $15,247
    MUTUAL OF OMAHA MORTGAGE, INC. 12 6.63% $18,639
    LAKEVIEW LOAN SERVICING, LLC 12 6.15% $14,593
    HARBORONE MORTGAGE, LLC 11 6.72% $14,679
    Ross Mortgage Company, Inc. 10 7.45% $13,770
    PLAZA HOME MORTGAGE, INC. 9 6.78% $14,924
    Equity Prime Mortgage LLC 9 7.10% $12,229
    HOMESTEAD FUNDING CORP. 9 6.46% $10,171
    Keystone Funding, Inc. 9 6.48% $15,216
    Semper Home Loans, Inc. 9 6.81% $16,661
    FIRST MORTGAGE COMPANY, INC. 8 6.56% $12,387
    BAYCOAST MORTGAGE COMPANY, LLC 8 6.25% $10,162
    RELIANCE FIRST CAPITAL, LLC 8 6.39% $18,256
    EMBRACE HOME LOANS, INC. 7 6.73% $14,912
    AMERICAN FINANCIAL NETWORK, INC. 7 7.13% $16,550
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 7 7.02% $17,063
    NFM, INC. 7 6.86% $13,908
    CARDINAL FINANCIAL 7 6.41% $13,120
    Bank of England 7 6.11% $17,978
    PRIMELENDING, A PLAINSCAPITAL COMPANY 6 6.71% $12,833
    Mortgage Research Center, LLC 6 7.23% $8,487
    NEW FED MORTGAGE, CORP. 5 6.63% $13,864
    Flagstar Bank, FSB 5 6.80% $10,592
    Carrington Mortgage Services, LLC 5 6.63% $12,476
    Northpointe Bank 5 6.25% $14,734
    BAY EQUITY LLC 5 7.00% $11,520
    Evolve Bank & Trust 5 6.63% $13,652
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 4 6.50% $15,244
    CIBM Bank 4 6.63% $10,868
    MILEND, INC. 4 6.50% $13,255
    First Federal Bank 4 6.28% $12,478
    TOP FLITE FINANCIAL, INC. 4 6.88% $22,197
    TD Bank 4 6.16% $7,776
    NBKC BANK 4 5.69% $14,340
    PROVINCE MORTGAGE ASSOCIATES, INC. 4 6.81% $11,975
    Berkshire Bank 4 6.00% $9,333
    FIRST WORLD MORTGAGE CORPORATION 3 6.71% $11,199
    Fall River Five Cents Savings Bank 3 6.71% $12,331
    EVERETT FINANCIAL, INC. 3 6.75% $9,012
    HOMESIDE FINANCIAL, LLC 3 6.50% $9,450
    DRAPER AND KRAMER MORTGAGE CORP. 3 6.58% $12,727
    PHH Mortgage Corporation 3 5.96% $14,130
    Prosperity Home Mortgage, LLC 3 6.96% $13,283
    Residential Mortgage Solutions, Inc. 3 6.75% $13,168
    Rockland Trust Company 3 6.50% $13,995
    ZILLOW HOME LOANS, LLC 3 6.54% $12,128
    American Mortgage & Equity Consultants, Inc. 3 7.50% $13,493
    ALLIED MORTGAGE GROUP, INC. 3 6.21% $14,452
    FIRST HOME MORTGAGE CORPORATION 3 6.33% $18,984
    AMERICAN FINANCIAL RESOURCES, INC. 2 6.88% $15,755
    U.S. Bank 2 6.87% $9,296
    Ixonia Bank 2 6.75% $21,925
    Easthampton Savings Bank 2 6.69% $10,071
    Arvest Bank 2 6.50% $6,982
    ACADEMY MORTGAGE CORPORATION 2 6.31% $17,514
    Republic State Mortgage Co. 2 6.63% $16,376
    EQUITY RESOURCES, INC. 2 7.24% $11,953
    CALCON MUTUAL MORTGAGE LLC 2 6.50% $22,179
    NORTHERN MORTGAGE SERVICES, LLC 2 6.75% $14,648
    NP, Inc. 2 6.88% $10,216
    First Internet Bank of Indiana 2 4.94% $14,879
    Waterstone Mortgage Corporation 2 6.38% $10,969
    Eastern Bank 2 6.50% $12,573
    NATIONS DIRECT MORTGAGE, LLC 2 7.25% $23,790
    LOANPAL, LLC 2 6.31% $13,890
    NATIONS RELIABLE LENDING, LLC 2 5.94% $19,264
    JPMorgan Chase Bank 1 6.13% $9,614
    Bangor Savings Bank 1 5.63% $12,415
    INTELLILOAN, INC. 1 6.50% $11,351
    VILLAGE CAPITAL MORTGAGE 1 7.25% $3,419
    Watermark Capital, Inc. 1 6.75% $9,665
    HUNT MORTGAGE CORPORATION 1 6.75% $14,911
    Webster Bank 1 5.88% $8,790
    GENEVA FINANCIAL, LLC 1 7.25% $11,417
    SUN WEST MORTGAGE COMPANY, INC. 1 5.96% $5,666
    HOMESPIRE MORTGAGE CORPORATION 1 5.75% $25,471
    Home Loan Investment Bank, F.S.B. 1 6.75% $12,504
    The Camden National Bank 1 6.25% $12,197
    The Federal Savings Bank 1 5.00% $20,481
    The Washington Trust Company, of Westerly 1 7.25% $9,617
    AMCAP MORTGAGE, LTD. 1 7.63% $18,691
    Cornerstone First Mortgage, Inc 1 5.75% $9,166
    NATIONWIDE MORTGAGE BANKERS, INC. 1 7.25% $15,603
    CHURCHILL MORTGAGE CORPORATION 1 7.13% $13,674
    M&T Bank 1 7.00% $10,967
    Century Mortgage Company DBA Century Lending Company 1 7.13% $9,702
    MID AMERICA MORTGAGE, INC. 1 7.25% $16,377
    CRESCENT MORTGAGE COMPANY 1 6.75% $12,801
    LIBERTY HOME MORTGAGE CORPORATION 1 6.63% $20,376
    Liberty Bank 1 5.88% $6,783
    LEGEND LENDING CORPORATION 1 7.25% $18,196
    NJ LENDERS CORP. 1 6.49% $12,788
    LAND HOME FINANCIAL SERVICES, INC. 1 7.00% $24,356
    OCEANSIDE MORTGAGE COMPANY 1 5.50% $10,252
    Old National Bank 1 6.00% $10,386
    LADERA LENDING, INC. 1 6.63% $20,146
    Barrington Bank & Trust Company, N.A. 1 5.63% $6,548
    Wells Fargo Bank 1 6.63% $9,208
    PLANET HOME LENDING, LLC 1 7.00% $8,332
    PNC Bank 1 7.13% $11,651
    POLARIS HOME FUNDING CORP. 1 7.25% $11,430
    PREMIA MORTGAGE, LLC 1 5.63% $12,687
    Bank of America 1 7.00% $4,988

    The top Worcester FHA lender as defined by loan originations is UNITED WHOLESALE MORTGAGE, LLC, with 201 FHA loans originated. Their average total fees are $14,446, which is $725 higher than the next largest lender, QUICKEN LOANS, LLC.

    The lowest fee Worcester FHA lenders (with over 10 loans originated) are LEADERONE FINANCIAL CORPORATION ($10,783), Leader Bank ($11,597), SALEM FIVE MORTGAGE COMPANY, LLC ($11,603), HOMEBRIDGE FINANCIAL SERVICES, INC. ($12,290) and Plains Commerce Bank ($12,362).

    The lowest rate Worcester FHA lenders (with over 10 loans originated) are PENNYMAC LOAN SERVICES, LLC (5.91%), AMERISAVE MORTGAGE CORPORATION (5.97%), Mr. Cooper ( Nationstar Mortgage ) (6.11%), LAKEVIEW LOAN SERVICING, LLC (6.15%) and QUICKEN LOANS, LLC (6.25%).

    Worcester FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    WORCESTER, MA-CT WINDHAM 2022 $420,680 $538,650 $651,050 $809,150
    WORCESTER, MA-CT WORCESTER 2022 $420,680 $538,650 $651,050 $809,150
    WORCESTER, MA-CT WINDHAM 2023 $472,030 $604,400 $730,525 $907,900
    WORCESTER, MA-CT WORCESTER 2023 $472,030 $604,400 $730,525 $907,900

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Worcester (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 $284,975 (6.5%) $345,132 (4.8%) 1.06 1,935
    2018-02-01 $289,900 (5.5%) $352,279 (6.3%) 1.05 1,825
    2018-03-01 $299,900 (7.2%) $367,340 (8.9%) 1.05 1,851
    2018-04-01 $318,375 (8.1%) $383,405 (9.8%) 1.08 2,007
    2018-05-01 $322,438 (7.8%) $387,342 (9.5%) 1.08 2,257
    2018-06-01 $324,900 (6.5%) $387,347 (7.4%) 1.08 2,596
    2018-07-01 $324,900 (8.3%) $388,514 (9.3%) 1.09 2,717
    2018-08-01 $319,900 (9.4%) $383,473 (8.9%) 1.07 2,825
    2018-09-01 $319,606 (10.3%) $382,196 (9.4%) 1.07 3,034
    2018-10-01 $312,000 (7.8%) $378,225 (8.3%) 1.06 3,048
    2018-11-01 $309,900 (7.2%) $371,841 (6.1%) 1.05 2,873
    2018-12-01 $304,000 (5.2%) $368,778 (6.3%) 1.05 2,402
    2019-01-01 $304,988 (7.0%) $370,805 (7.4%) 1.05 2,045
    2019-02-01 $321,200 (10.8%) $377,180 (7.1%) 1.09 1,899
    2019-03-01 $335,614 (11.9%) $390,601 (6.3%) 1.10 1,939
    2019-04-01 $351,550 (10.4%) $405,694 (5.8%) 1.12 2,040
    2019-05-01 $359,900 (11.6%) $413,484 (6.8%) 1.12 2,299
    2019-06-01 $359,900 (10.8%) $422,344 (9.0%) 1.12 2,532
    2019-07-01 $354,900 (9.2%) $417,377 (7.4%) 1.11 2,552
    2019-08-01 $350,809 (9.7%) $413,552 (7.8%) 1.11 2,563
    2019-09-01 $344,673 (7.8%) $406,959 (6.5%) 1.10 2,598
    2019-10-01 $343,357 (10.1%) $402,327 (6.4%) 1.11 2,603
    2019-11-01 $344,900 (11.3%) $399,114 (7.3%) 1.13 2,360
    2019-12-01 $344,700 (13.4%) $396,896 (7.6%) 1.15 1,908
    2020-01-01 $344,675 (13.0%) $400,188 (7.9%) 1.15 1,627
    2020-02-01 $349,900 (8.9%) $414,469 (9.9%) 1.15 1,459
    2020-03-01 $364,950 (8.7%) $432,462 (10.7%) 1.14 1,532
    2020-04-01 $370,950 (5.5%) $429,618 (5.9%) 1.16 1,548
    2020-05-01 $379,900 (5.6%) $438,213 (6.0%) 1.15 1,595
    2020-06-01 $395,400 (9.9%) $461,864 (9.4%) 1.16 1,444
    2020-07-01 $397,425 (12.0%) $463,616 (11.1%) 1.15 1,300
    2020-08-01 $389,900 (11.1%) $467,523 (13.1%) 1.12 1,184
    2020-09-01 $389,675 (13.1%) $472,711 (16.2%) 1.12 1,187
    2020-10-01 $385,000 (12.1%) $477,667 (18.7%) 1.10 1,206
    2020-11-01 $381,150 (10.5%) $472,067 (18.3%) 1.11 1,077
    2020-12-01 $389,600 (13.0%) $472,512 (19.1%) 1.16 920
    2021-01-01 $399,900 (16.0%) $489,820 (22.4%) 1.19 698
    2021-02-01 $399,900 (14.3%) $488,560 (17.9%) 1.16 583
    2021-03-01 $394,950 (8.2%) $483,649 (11.8%) 1.12 639
    2021-04-01 $396,000 (6.8%) $476,153 (10.8%) 1.07 706
    2021-05-01 $399,000 (5.0%) $482,777 (10.2%) 1.06 766
    2021-06-01 $420,000 (6.2%) $490,866 (6.3%) 1.11 894
    2021-07-01 $415,000 (4.4%) $485,508 (4.7%) 1.10 1,026
    2021-08-01 $405,000 (3.9%) $479,811 (2.6%) 1.08 1,086
    2021-09-01 $404,900 (3.9%) $481,572 (1.9%) 1.08 1,094
    2021-10-01 $395,000 (2.6%) $469,813 (-1.6%) 1.05 1,099
    2021-11-01 $394,084 (3.4%) $497,717 (5.4%) 1.05 924
    2021-12-01 $387,475 (-0.6%) $505,277 (6.9%) 1.05 719
    2022-01-01 $399,000 (-0.2%) $528,389 (7.9%) 1.08 544
    2022-02-01 $423,250 (5.8%) $622,995 (27.5%) 1.10 489
    2022-03-01 $438,675 (11.1%) $627,123 (29.7%) 1.10 508
    2022-04-01 $449,000 (13.4%) $619,822 (30.2%) 1.07 615
    2022-05-01 $469,450 (17.7%) $612,460 (26.9%) 1.07 789
    2022-06-01 $449,950 (7.1%) $591,110 (20.4%) 1.00 963
    2022-07-01 $449,900 (8.4%) $573,407 (18.1%) 1.01 1,164
    2022-08-01 $449,900 (11.1%) $577,450 (20.4%) 1.04 1,129
    2022-09-01 $439,925 (8.7%) $524,257 (8.9%) 1.03 1,066
    2022-10-01 $449,900 (13.9%) $561,800 (19.6%) 1.06 1,093
    2022-11-01 $449,450 (14.1%) $573,388 (15.2%) 1.08 1,055
    2022-12-01 $445,000 (14.9%) $590,266 (16.8%) 1.10 819
    2023-01-01 $464,905 (16.5%) $605,979 (14.7%) 1.15 728
    2023-02-01 $494,450 (16.8%) $638,376 (2.5%) 1.19 609
    2023-03-01 $493,000 (12.4%) $635,158 (1.3%) 1.16 582
    2023-04-01 $504,900 (12.5%) $634,396 (2.4%) 1.17 674
    2023-05-01 $516,175 (10.0%) $638,486 (4.3%) 1.17 714
    2023-06-01 $509,950 (13.3%) $606,152 (2.5%) 1.15 774
    2023-07-01 $519,400 (15.5%) $603,164 (5.2%) 1.18 730
    2023-08-01 $499,450 (11.0%) $615,996 (6.7%) 1.15 811
    2023-09-01 $490,000 (11.4%) $615,970 (17.5%) 1.14 893
    2023-10-01 $487,400 (8.3%) $580,248 (3.3%) 1.15 927
    2023-11-01 $475,000 (5.7%) $589,158 (2.8%) 1.13 942
    2023-12-01 $479,450 (7.7%) $600,335 (1.7%) 1.17 766
    2024-01-01 $498,000 (7.1%) $610,971 (0.8%) 1.22 621
    2024-02-01 $499,350 (1.0%) $633,419 (-0.8%) 1.20 598
    2024-03-01 $499,999 (1.4%) $643,339 (1.3%) 1.18 640
    Worcester's median listing price for 2024-03-01 was $499,999, a difference of $6,999 (1.4%) versus the prior year and $649 versus the prior month.

    Worcester's median listing price comes in at 118% of the national average.

    Worcester's average listing price for 2024-03-01 was $643,339, a difference of $8,181 (1.3%) versus the prior year and $9,920 versus the prior month.

    For the 2024-03-01 period, Worcester had 640 MLS listings, a difference of 42 listings (7%) versus the prior month and 58 listings (10%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Worcester (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 80 days 1,792 sqft
    2018-02-01 75 days 1,800 sqft
    2018-03-01 47 days 1,804 sqft
    2018-04-01 39 days 1,840 sqft
    2018-05-01 33 days 1,836 sqft
    2018-06-01 37 days 1,858 sqft
    2018-07-01 44 days 1,876 sqft
    2018-08-01 51 days 1,880 sqft
    2018-09-01 51 days 1,876 sqft
    2018-10-01 54 days 1,869 sqft
    2018-11-01 60 days 1,851 sqft
    2018-12-01 70 days 1,820 sqft
    2019-01-01 79 days 1,802 sqft
    2019-02-01 78 days 1,828 sqft
    2019-03-01 60 days 1,879 sqft
    2019-04-01 39 days 1,971 sqft
    2019-05-01 38 days 2,019 sqft
    2019-06-01 39 days 2,030 sqft
    2019-07-01 48 days 2,000 sqft
    2019-08-01 52 days 1,981 sqft
    2019-09-01 53 days 1,952 sqft
    2019-10-01 53 days 1,943 sqft
    2019-11-01 58 days 1,920 sqft
    2019-12-01 75 days 1,892 sqft
    2020-01-01 79 days 1,877 sqft
    2020-02-01 58 days 1,904 sqft
    2020-03-01 35 days 1,988 sqft
    2020-04-01 44 days 2,000 sqft
    2020-05-01 52 days 2,000 sqft
    2020-06-01 41 days 2,000 sqft
    2020-07-01 37 days 2,000 sqft
    2020-08-01 36 days 2,002 sqft
    2020-09-01 26 days 1,960 sqft
    2020-10-01 26 days 1,952 sqft
    2020-11-01 42 days 1,920 sqft
    2020-12-01 54 days 1,873 sqft
    2021-01-01 54 days 1,900 sqft
    2021-02-01 47 days 1,810 sqft
    2021-03-01 16 days 1,801 sqft
    2021-04-01 15 days 1,793 sqft
    2021-05-01 14 days 1,815 sqft
    2021-06-01 16 days 1,843 sqft
    2021-07-01 22 days 1,830 sqft
    2021-08-01 24 days 1,808 sqft
    2021-09-01 27 days 1,808 sqft
    2021-10-01 26 days 1,778 sqft
    2021-11-01 35 days 1,768 sqft
    2021-12-01 39 days 1,718 sqft
    2022-01-01 47 days 1,706 sqft
    2022-02-01 28 days 1,768 sqft
    2022-03-01 16 days 1,798 sqft
    2022-04-01 10 days 1,846 sqft
    2022-05-01 14 days 1,895 sqft
    2022-06-01 16 days 1,874 sqft
    2022-07-01 23 days 1,875 sqft
    2022-08-01 30 days 1,885 sqft
    2022-09-01 32 days 1,869 sqft
    2022-10-01 33 days 1,879 sqft
    2022-11-01 37 days 1,878 sqft
    2022-12-01 52 days 1,850 sqft
    2023-01-01 52 days 1,872 sqft
    2023-02-01 42 days 1,889 sqft
    2023-03-01 31 days 1,875 sqft
    2023-04-01 19 days 1,921 sqft
    2023-05-01 19 days 1,973 sqft
    2023-06-01 18 days 1,956 sqft
    2023-07-01 25 days 1,939 sqft
    2023-08-01 23 days 1,877 sqft
    2023-09-01 27 days 1,879 sqft
    2023-10-01 27 days 1,871 sqft
    2023-11-01 32 days 1,855 sqft
    2023-12-01 44 days 1,824 sqft
    2024-01-01 45 days 1,830 sqft
    2024-02-01 30 days 1,814 sqft
    2024-03-01 23 days 1,813 sqft
    Worcester's median listing age (time on market) for 2024-03-01 was 23 days. This is -25% shorter than the same period one year ago.

    Worcester's median square footage for active listings during the 2024-03-01 period was 1,813 sqft. One year prior, the average listing was 1,875 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).