Worcester FHA Loans

WORCESTER, MA-CT

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 160 lenders originated 4,353 FHA loans during 2021. The total origination value was $1,338,275,000, with an average FHA loan value of $307,437.

Worcester FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Worcester averaged 5.08% 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 5.51% and one month ago for the week of 2022-04-08, the average rate was 4.97%.

The average rate one year ago was 2.88%.

For refis of the same type during the week of 2022-05-13, the average rate was 5.21%.

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 and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Worcester level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
QUICKEN LOANS, LLC 343 2.70% $7,334
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 210 3.24% $8,951
UNITED WHOLESALE MORTGAGE, LLC 206 2.67% $9,925
LAKEVIEW LOAN SERVICING, LLC 197 2.96% $5,339
TOTAL MORTGAGE SERVICES, LLC 195 3.38% $10,367
FREEDOM MORTGAGE CORPORATION 194 2.96% $6,161
ENVOY MORTGAGE, LTD 131 3.25% $9,861
HOMEBRIDGE FINANCIAL SERVICES, INC. 124 2.87% $7,917
RESIDENTIAL MORTGAGE SERVICES, INC. 121 2.99% $9,019
CALIBER HOME LOANS, INC. 96 2.70% $8,179
CROSSCOUNTRY MORTGAGE, LLC 96 3.02% $10,948
Mr. Cooper ( Nationstar Mortgage ) 91 3.19% $4,962
PENNYMAC LOAN SERVICES, LLC 82 2.93% $6,406
HOME POINT FINANCIAL CORPORATION 82 2.84% $9,463
NEWREZ LLC 77 2.86% $7,037
LOANDEPOT.COM, LLC 71 3.11% $9,497
Evolve Bank & Trust 63 2.82% $10,273
Nations Lending Corporation 56 3.49% $8,293
MOVEMENT MORTGAGE, LLC 56 3.23% $9,444
GUARANTEED RATE, INC. 56 2.84% $9,373
OCMBC, INC. 51 3.04% $10,093
Paramount Residential Mortgage Group, Inc. 50 2.86% $8,834
NORWICH COMMERCIAL GROUP, INC. 45 3.60% $10,289
Equity Prime Mortgage LLC 42 3.38% $8,899
RADIUS FINANCIAL GROUP INC. 42 2.81% $9,838
DREW MORTGAGE ASSOCIATES, INC. 38 3.03% $9,724
PRIMARY RESIDENTIAL MORTGAGE, INC. 36 3.58% $10,980
AMERISAVE MORTGAGE CORPORATION 34 3.02% $10,244
EMM LOANS LLC 32 3.13% $9,796
FINANCE OF AMERICA MORTGAGE LLC 31 2.79% $10,922
BAY EQUITY LLC 29 3.14% $9,840
Ross Mortgage Company, Inc. 27 3.00% $9,121
Shamrock Home Loans, Inc. 27 2.93% $9,124
PLAZA HOME MORTGAGE, INC. 26 3.09% $9,760
Citizens Bank 26 2.77% $9,490
NEW FED MORTGAGE, CORP. 26 2.87% $10,545
NORTHPOINT MORTGAGE, INC. 24 2.82% $10,114
ARC HOME LLC 23 2.83% $9,411
NFM, INC. 20 3.23% $9,542
BROKER SOLUTIONS, INC. 19 2.94% $9,938
Carrington Mortgage Services, LLC 18 3.57% $8,617
VILLAGE CAPITAL & INVESTMENT LLC 16 2.87% $2,547
PRIMELENDING, A PLAINSCAPITAL COMPANY 16 3.04% $11,076
Northpointe Bank 16 2.97% $9,811
First Guaranty Mortgage Corporation 16 2.82% $7,667
ALLIED MORTGAGE GROUP, INC. 14 3.13% $8,700
Sierra Pacific Mortgage Company, Inc. 14 2.91% $9,191
Mortgage Network, Inc. 13 3.13% $10,180
MORTGAGE EQUITY PARTNERS LLC 13 3.22% $10,952
Envision Bank 12 2.81% $8,347
GUILD MORTGAGE COMPANY 12 3.52% $9,805
EMBRACE HOME LOANS, INC. 11 2.91% $8,455
PROVINCE MORTGAGE ASSOCIATES, INC. 11 2.97% $8,575
GUARANTEED RATE AFFINITY, LLC 10 2.96% $8,864
AMERICAN FINANCIAL NETWORK, INC. 10 3.00% $10,627
HARBORONE MORTGAGE, LLC 10 2.98% $9,239
Hometown Lenders, Inc. 10 3.21% $9,217
The Federal Savings Bank 10 2.88% $12,288
SALEM FIVE MORTGAGE COMPANY, LLC 9 2.68% $9,049
RELIANCE FIRST CAPITAL, LLC 9 2.96% $11,250
Bank of England 9 2.92% $12,260
EVERETT FINANCIAL, INC. 9 3.79% $6,891
MSA MORTGAGE, LLC 8 2.58% $9,593
ACADEMY MORTGAGE CORPORATION 8 3.03% $9,944
FIRST HOME MORTGAGE CORPORATION 8 3.44% $10,869
HOMESPIRE MORTGAGE CORPORATION 8 3.47% $12,545
Berkshire Bank 7 2.80% $8,036
Bank of America 7 2.82% $6,363
Prosperity Home Mortgage, LLC 7 3.07% $8,058
INLAND BANK & TRUST 7 3.02% $9,008
Rockland Trust Company 7 2.61% $9,455
MUTUAL OF OMAHA MORTGAGE, INC. 7 2.82% $9,873
Manufacturers and Traders Trust Company 6 2.94% $7,395
Flagstar Bank, FSB 6 2.98% $8,601
DRAPER AND KRAMER MORTGAGE CORP. 6 3.00% $9,192
FIRST WORLD MORTGAGE CORPORATION 6 3.02% $7,917
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 6 3.29% $9,283
HOMESIDE FINANCIAL, LLC 5 3.15% $7,369
HUNT MORTGAGE CORPORATION 5 3.08% $9,349
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 5 2.90% $9,745
BAYCOAST MORTGAGE COMPANY, LLC 5 2.78% $8,300
KELLER MORTGAGE, LLC 5 2.53% $8,255
Leader Bank 4 2.31% $10,993
Mortgage Research Center, LLC 4 2.84% $8,730
InterContinental Capital Group, Inc 4 2.88% $10,411
CRESCENT MORTGAGE COMPANY 4 2.75% $10,027
HOMESTEAD FUNDING CORP. 4 3.09% $6,420
First Federal Bank 4 2.81% $8,759
Ixonia Bank 3 3.21% $8,845
AMERICAN FINANCING CORPORATION 3 2.71% $9,614
ARK-LA-TEX FINANCIAL SERVICES, LLC. 3 3.75% $6,947
BAYSHORE MORTGAGE FUNDING, LLC 3 3.21% $7,205
Charter Oak Federal Credit Union 3 2.75% $6,129
Chelsea Groton Bank 3 2.75% $7,069
Eastern Bank 3 2.63% $10,657
Fall River Five Cents Savings Bank 3 2.79% $12,047
Home Loan Investment Bank, F.S.B. 3 2.88% $9,578
LEADERONE FINANCIAL CORPORATION 3 3.42% $10,657
NATIONWIDE MORTGAGE BANKERS, INC. 3 3.42% $13,505
Peoples Bank 3 3.50% $9,533
TOP FLITE FINANCIAL, INC. 3 3.50% $16,817
WILLIAM RAVEIS MORTGAGE, LLC 3 2.58% $8,511
Hometown Equity Mortgage, LLC 2 4.75% $10,425
MYCUMORTGAGE, LLC 2 3.00% $6,734
LAND HOME FINANCIAL SERVICES, INC. 2 2.25% $8,534
Lakeview Community Capital, LLC 2 3.38% $3,387
INTELLILOAN, INC. 2 3.06% $6,360
OCEANSIDE MORTGAGE COMPANY 2 2.56% $3,176
GENEVA FINANCIAL, LLC 2 3.38% $9,890
Waterstone Mortgage Corporation 2 3.38% $10,723
Plains Commerce Bank 2 2.63% $10,692
First Home Bank 2 2.75% $11,365
CONTOUR MORTGAGE CORPORATION 2 2.81% $7,464
CMG MORTGAGE, INC. 2 2.94% $9,973
Residential Mortgage Solutions, Inc. 2 3.44% $7,741
Santander Bank, N.A. 2 2.44% $8,896
Atlantic Home Loans, Inc. 2 3.19% $9,393
STEARNS LENDING, LLC 2 2.56% $10,239
SUCCESS MORTGAGE PARTNERS, INC. 2 2.88% $8,412
TD Bank 2 3.06% $6,129
The Camden National Bank 2 2.75% $10,004
AMERICAN PACIFIC MORTGAGE CORPORATION 2 2.81% $9,104
The Washington Trust Company, of Westerly 2 2.94% $8,943
AMERICAN NATIONWIDE MORTGAGE COMPANY, INC. 2 2.69% $12,232
UNION HOME MORTGAGE CORP. 2 3.31% $7,191
MID-ISLAND MORTGAGE CORP. 2 3.19% $7,963
Fidelity Bank 1 2.88% $6,763
EQUITY RESOURCES, INC. 1 3.13% $9,535
US MORTGAGE CORPORATION 1 3.63% $10,071
Congressional Bank 1 2.75% $9,410
Colonial Savings, F.A. 1 3.50% $8,447
VAN DYK MORTGAGE CORPORATION 1 2.75% $9,690
CHURCHILL MORTGAGE CORPORATION 1 3.13% $9,806
Reliant Bank 1 3.13% $12,873
Republic State Mortgage Co. 1 3.25% $11,557
Chickasaw Community Bank 1 4.63% $8,201
MILEND, INC. 1 2.25% $10,877
Magnolia Bank 1 2.25% $20,039
CELEBRITY HOME LOANS, LLC 1 3.50% $11,957
LENDUS, LLC 1 3.00% $10,224
Allied First Bank,sb 1 3.00% $9,368
Network Funding, L.P. 1 2.38% $9,232
NEW DAY FINANCIAL, LLC 1 2.75% $9,303
Capital Bank 1 2.38% $6,747
Bridgewater Savings Bank 1 2.50% $8,052
LADERA LENDING, INC. 1 3.25% $6,923
NJ LENDERS CORP. 1 3.00% $9,319
North American Savings Bank, F.S.B. 1 2.75% $8,898
NORTHERN MORTGAGE SERVICES, LLC 1 3.25% $8,231
ZILLOW HOME LOANS, LLC 1 2.75% $8,100
MEADOWBROOK FINANCIAL MORTGAGE BANKERS CORP. 1 3.13% $17,244
Home Mortgage Alliance Corp 1 2.45% $10,705
Bangor Savings Bank 1 2.75% $9,180
MountainOne Bank 1 3.25% $7,918
FM Home Loans, LLC 1 2.88% $11,676
First Savings Bank 1 3.63% $13,660
METRO 1 2.38% $7,382
UNITED MORTGAGE CORP. 1 3.25% $8,122
AMERICAN FINANCIAL RESOURCES, INC. 1 2.75% $14,940
Poli Mortgage Group, Inc. 1 3.00% $6,890

The top Worcester FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 343 FHA loans originated. Their average total fees are $7,334, which is $1,617 lower than the next largest lender, FAIRWAY INDEPENDENT MORTGAGE CORPORATION.

The lowest fee Worcester FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL & INVESTMENT LLC ($2,547), Mr. Cooper ( Nationstar Mortgage ) ($4,962), LAKEVIEW LOAN SERVICING, LLC ($5,339), FREEDOM MORTGAGE CORPORATION ($6,161) and PENNYMAC LOAN SERVICES, LLC ($6,406).

The lowest rate Worcester FHA lenders (with over 10 loans originated) are UNITED WHOLESALE MORTGAGE, LLC (2.67%), QUICKEN LOANS, LLC (2.70%), CALIBER HOME LOANS, INC. (2.70%), Citizens Bank (2.77%) and FINANCE OF AMERICA MORTGAGE LLC (2.79%).

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

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).