Worcester FHA Loans

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 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).