York FHA Loan Rates, Closing Costs & Stats

YORK-HANOVER, PA

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.

York's 146 lenders originated 1,318 FHA loans during 2023. The total origination value was $327,620,000, with an average FHA loan value of $248,574.

York FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in York averaged 6.86% for the week of 2024-07-12, compared to the national average (all FHA variants) of 6.655% for the same period.

York's average FHA mortgage closing costs are $8,015.

The average rate for the prior week (2024-07-05) was 6.83% and one month ago for the week of 2024-06-07, the average rate was 6.51%.

The average rate one year ago was 6.71%.

For refis of the same type during the week of 2024-07-12, the average rate was 7.05%.

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

York 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 York level.

Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
QUICKEN LOANS, LLC 115 6.23% $11,056
CROSSCOUNTRY MORTGAGE, LLC 92 6.75% $12,044
MOVEMENT MORTGAGE, LLC 88 6.84% $11,036
York Traditions Bank 86 6.56% $9,157
UNITED WHOLESALE MORTGAGE, LLC 52 6.36% $13,856
CMG MORTGAGE, INC. 46 6.91% $10,824
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 40 6.88% $9,859
GUILD MORTGAGE COMPANY 36 6.88% $11,161
LOANDEPOT.COM, LLC 26 6.33% $12,163
FREEDOM MORTGAGE CORPORATION 25 6.96% $14,183
NEWREZ LLC 24 6.42% $12,689
PRIMARY RESIDENTIAL MORTGAGE, INC. 22 6.84% $12,682
RADIUS FINANCIAL GROUP INC. 21 7.13% $12,009
M&T Bank 20 6.23% $7,136
FIRST HOME MORTGAGE CORPORATION 20 6.93% $14,521
PENNYMAC LOAN SERVICES, LLC 18 6.18% $11,313
EMM LOANS LLC 18 6.41% $12,511
NFM, INC. 18 6.84% $11,230
DHI MORTGAGE COMPANY, LTD. 17 5.53% $11,140
Northpointe Bank 15 6.43% $12,149
FIRST ALLIANCE HOME MORTGAGE, LLC 15 6.79% $11,174
MEMBERS 1ST FEDERAL CREDIT UNION 13 6.60% $8,512
BROKER SOLUTIONS, INC. 13 6.75% $11,401
Mr. Cooper ( Nationstar Mortgage ) 11 6.24% $13,766
GUARANTEED RATE AFFINITY, LLC 11 6.59% $10,675
Meridian Bank Corporation 10 6.34% $9,311
Fulton Bank 10 6.39% $9,332
CARDINAL FINANCIAL 10 6.50% $13,612
ENVOY MORTGAGE, LTD 9 6.85% $16,225
AMERISAVE MORTGAGE CORPORATION 9 6.06% $15,567
TIDEWATER MORTGAGE SERVICES, INC. 9 6.56% $11,865
Carrington Mortgage Services, LLC 9 6.11% $13,350
Paramount Residential Mortgage Group, Inc. 8 6.94% $14,863
Integrity Home Mortgage Corp 7 6.84% $12,736
Sierra Pacific Mortgage Company, Inc. 7 6.55% $9,820
Citizens Bank 7 6.66% $12,384
GUARANTEED RATE, INC. 7 6.41% $10,223
Homesale Mortgage, LLC 6 6.90% $11,568
HOMEBRIDGE FINANCIAL SERVICES, INC. 6 6.31% $11,030
SUCCESS MORTGAGE PARTNERS, INC. 6 6.23% $10,278
T2 FINANCIAL LLC 6 6.54% $12,349
Towne Bank 6 6.08% $10,325
HOWARD HANNA FINANCIAL SERVICES, INC. 5 6.68% $7,037
NVR Mortgage Finance, Inc. 5 5.55% $17,428
PNC Bank 5 6.75% $9,291
LAKEVIEW LOAN SERVICING, LLC 5 6.35% $13,190
Residential Mortgage Solutions, Inc. 5 6.75% $12,224
Alcova Mortgage LLC 5 6.65% $5,692
Prosperity Home Mortgage, LLC 4 6.46% $12,990
AmeriHome Mortgage Company, LLC 4 6.25% $11,847
MICHIGAN MUTUAL, INC. 4 6.56% $11,250
PRIMELENDING, A PLAINSCAPITAL COMPANY 4 6.44% $10,055
EAGLE HOME MORTGAGE, LLC 4 6.44% $16,952
Equity Prime Mortgage LLC 4 7.53% $11,442
UNION HOME MORTGAGE CORP. 4 6.56% $12,330
First Heritage Mortgage, LLC 4 6.28% $14,234
Truist 4 6.35% $8,343
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 4 6.94% $21,991
NATIONWIDE MORTGAGE BANKERS, INC. 4 7.06% $13,487
LIBERTY HOME MORTGAGE CORPORATION 3 7.25% $8,364
FIDELITY DIRECT MORTGAGE, LLC 3 6.58% $16,386
NATIONS DIRECT MORTGAGE, LLC 3 6.38% $13,153
AMERICAN FINANCIAL RESOURCES, INC. 3 7.04% $7,407
AMERICAN FINANCIAL NETWORK, INC. 3 6.96% $15,852
RELIANCE FIRST CAPITAL, LLC 3 7.08% $9,695
STATE EMPLOYEES CREDIT UNION OF MARYLAND, INCORPORATED 3 6.38% $5,207
ABSOLUTE HOME MORTGAGE CORPORATION 3 6.92% $9,837
ARK-LA-TEX FINANCIAL SERVICES, LLC. 3 6.50% $6,235
MDE Home Loans, LLC 3 7.29% $22,608
MUTUAL OF OMAHA MORTGAGE, INC. 3 6.25% $19,034
JPMorgan Chase Bank 3 6.96% $9,093
Flagstar Bank, FSB 3 6.46% $9,576
PENTAGON FEDERAL CREDIT UNION 3 5.38% $10,284
ZILLOW HOME LOANS, LLC 2 7.31% $11,260
ATLANTIC BAY MORTGAGE GROUP, L.L.C. 2 7.44% $11,612
CALIBER HOME LOANS, INC. 2 6.50% $14,417
Century Mortgage Company DBA Century Lending Company 2 7.25% $10,732
CONTOUR MORTGAGE CORPORATION 2 7.19% $10,711
CREDIT UNION MORTGAGE ASSOCIATION, INC. 2 6.13% $12,612
DAS Acquisition Company, LLC 2 6.63% $10,508
EVERETT FINANCIAL, INC. 2 6.75% $14,028
First National Bank of Pennsylvania 2 7.19% $8,881
GSF Mortgage Corporation 2 5.81% $19,395
HOMESPIRE MORTGAGE CORPORATION 2 6.56% $18,721
Magnolia Bank 2 6.87% $8,913
MILEND, INC. 2 6.38% $11,516
MORTGAGE SOLUTIONS OF COLORADO, LLC 2 6.88% $17,896
NBKC BANK 2 5.56% $12,534
PHH Mortgage Corporation 2 6.31% $8,529
Plains Commerce Bank 2 7.69% $12,328
PLAZA HOME MORTGAGE, INC. 2 6.06% $8,547
STOCKTON MORTGAGE CORPORATION 2 6.25% $12,410
SUN WEST MORTGAGE COMPANY, INC. 2 5.92% $7,412
The Federal Savings Bank 2 7.06% $8,717
1ST FINANCIAL, INC. 2 6.50% $13,442
LENDING 3, INC. 1 8.25% $16,477
Nations Lending Corporation 1 6.25% $16,055
Lakeview Community Capital, LLC 1 5.75% $8,920
ALLIED MORTGAGE GROUP, INC. 1 6.63% $14,287
NETWORK CAPITAL FUNDING CORPORATION 1 7.25% $7,138
HOMESIDE FINANCIAL, LLC 1 6.25% $7,947
HOMEAMERICAN MORTGAGE CORPORATION 1 5.50% $7,377
George Mason Mortgage, LLC 1 6.88% $11,228
GENEVA FINANCIAL, LLC 1 6.50% $18,840
Foote Capital Mortgage Company 1 6.25% $17,193
First Option Mortgage, LLC 1 6.13% $14,175
FIRST HERITAGE FINANCIAL, LLC 1 6.49% $8,123
Univest Bank and Trust Co. 1 6.50% $7,792
U.S. Bank 1 6.75% $10,097
PLANET HOME LENDING, LLC 1 7.13% $9,871
VILLAGE CAPITAL MORTGAGE 1 7.00% $4,660
FIRST COMMUNITY MORTGAGE, INC. 1 6.63% $11,785
EMBRACE HOME LOANS, INC. 1 6.75% $8,554
DRAPER AND KRAMER MORTGAGE CORP. 1 6.13% $8,618
Princeton Mortgage Corporation 1 7.13% $7,360
DIRECT MORTGAGE LOANS, LLC 1 7.13% $22,893
DEVELOPER'S MORTGAGE COMPANY 1 6.13% $14,228
Customers Bank 1 6.13% $9,758
CHERRY CREEK MORTGAGE, LLC 1 7.13% $4,644
CBM Mortgage, Inc. 1 5.50% $11,072
Sandy Spring Bank 1 6.49% $10,231
Shore United Bank 1 5.75% $10,420
CASTLE & COOKE MORTGAGE, LLC 1 5.50% $16,494
BETTER MORTGAGE CORPORATION 1 7.13% $5,866
Wells Fargo Bank 1 6.88% $8,770
BAYSHORE MORTGAGE FUNDING, LLC 1 7.25% $13,176
SUMMIT FUNDING, INC. 1 5.99% $17,616
WesBanco 1 6.75% $9,568
SWBC MORTGAGE CORPORATION 1 6.25% $14,656
BAY EQUITY LLC 1 6.25% $17,626
ACADEMY MORTGAGE CORPORATION 1 6.75% $8,598
THE MORTGAGE LINK, INC. 1 5.75% $21,678
AmRes Corporation 1 6.25% $10,861
TJC Mortgage, Inc. 1 6.13% $10,744
TOP FLITE FINANCIAL, INC. 1 6.75% $23,278
AMERICAN PACIFIC MORTGAGE CORPORATION 1 6.75% $10,822
AMERICAN HERITAGE FCU 1 6.49% $10,683
MORTGAGE ACCESS CORP. 1 6.75% $19,506
Mortgage America, Inc. 1 6.50% $8,341
MORTGAGE EQUITY PARTNERS LLC 1 7.13% $8,894
Mortgage Research Center, LLC 1 6.50% $16,784
AMERICAN FINANCING CORPORATION 1 6.63% $7,394
MLB RESIDENTIAL LENDING, LLC 1 7.13% $12,842
Mid Penn Bank 1 6.13% $9,679
MEADOWBROOK FINANCIAL MORTGAGE BANKERS CORP. 1 6.13% $24,267
LOANLEADERS OF AMERICA, INC. 1 5.25% $14,881

The top York FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 115 FHA loans originated. Their average total fees are $11,056, which is $988 lower than the next largest lender, CROSSCOUNTRY MORTGAGE, LLC.

The lowest fee York FHA lenders (with over 10 loans originated) are M&T Bank ($7,136), MEMBERS 1ST FEDERAL CREDIT UNION ($8,512), York Traditions Bank ($9,157), Meridian Bank Corporation ($9,311) and Fulton Bank ($9,332).

The lowest rate York FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.53%), PENNYMAC LOAN SERVICES, LLC (6.18%), QUICKEN LOANS, LLC (6.23%), M&T Bank (6.23%) and Mr. Cooper ( Nationstar Mortgage ) (6.24%).

York FHA Loan Limits

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

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - York (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 $211,450 (14.3%) $236,350 (10.1%) 0.78 1,523
2018-02-01 $214,948 (16.2%) $242,400 (12.8%) 0.78 1,408
2018-03-01 $213,841 (12.6%) $243,881 (9.3%) 0.75 1,393
2018-04-01 $219,900 (10.0%) $246,816 (7.1%) 0.75 1,459
2018-05-01 $226,950 (7.6%) $253,069 (7.2%) 0.76 1,496
2018-06-01 $229,200 (9.2%) $255,716 (7.6%) 0.76 1,584
2018-07-01 $228,029 (8.6%) $255,670 (6.4%) 0.76 1,597
2018-08-01 $224,900 (7.1%) $253,853 (6.2%) 0.75 1,632
2018-09-01 $219,900 (10.0%) $248,717 (5.5%) 0.74 1,588
2018-10-01 $219,450 (5.1%) $246,196 (3.0%) 0.74 1,654
2018-11-01 $219,900 (10.0%) $245,927 (5.6%) 0.75 1,661
2018-12-01 $217,450 (8.8%) $243,135 (4.9%) 0.75 1,601
2019-01-01 $218,343 (3.3%) $240,841 (1.9%) 0.75 1,416
2019-02-01 $219,900 (2.3%) $243,174 (0.3%) 0.74 1,305
2019-03-01 $219,900 (2.8%) $247,330 (1.4%) 0.72 1,287
2019-04-01 $220,650 (0.3%) $253,281 (2.6%) 0.70 1,293
2019-05-01 $228,400 (0.6%) $258,824 (2.3%) 0.71 1,335
2019-06-01 $229,900 (0.3%) $263,519 (3.1%) 0.72 1,400
2019-07-01 $238,734 (4.7%) $269,016 (5.2%) 0.75 1,417
2019-08-01 $238,564 (6.1%) $271,551 (7.0%) 0.76 1,395
2019-09-01 $236,559 (7.6%) $272,684 (9.6%) 0.76 1,357
2019-10-01 $235,000 (7.1%) $273,413 (11.1%) 0.76 1,320
2019-11-01 $231,490 (5.3%) $268,360 (9.1%) 0.76 1,203
2019-12-01 $235,410 (8.3%) $267,752 (10.1%) 0.79 1,094
2020-01-01 $237,659 (8.9%) $267,065 (10.9%) 0.79 994
2020-02-01 $248,983 (13.2%) $274,477 (12.9%) 0.82 917
2020-03-01 $258,570 (17.6%) $284,984 (15.2%) 0.81 909
2020-04-01 $267,900 (21.4%) $292,028 (15.3%) 0.84 838
2020-05-01 $259,995 (13.8%) $292,167 (12.9%) 0.79 900
2020-06-01 $255,423 (11.1%) $289,737 (10.0%) 0.75 849
2020-07-01 $260,629 (9.2%) $304,904 (13.3%) 0.76 754
2020-08-01 $271,400 (13.8%) $307,605 (13.3%) 0.78 680
2020-09-01 $268,445 (13.5%) $309,658 (13.6%) 0.77 644
2020-10-01 $259,995 (10.6%) $305,693 (11.8%) 0.75 636
2020-11-01 $262,500 (13.4%) $310,743 (15.8%) 0.77 605
2020-12-01 $263,945 (12.1%) $315,609 (17.9%) 0.79 540
2021-01-01 $264,945 (11.5%) $316,802 (18.6%) 0.79 442
2021-02-01 $274,482 (10.2%) $319,792 (16.5%) 0.80 405
2021-03-01 $276,443 (6.9%) $309,138 (8.5%) 0.78 422
2021-04-01 $280,705 (4.8%) $308,093 (5.5%) 0.76 427
2021-05-01 $279,900 (7.7%) $304,129 (4.1%) 0.74 479
2021-06-01 $260,495 (2.0%) $294,889 (1.8%) 0.69 595
2021-07-01 $269,900 (3.6%) $300,589 (-1.4%) 0.71 634
2021-08-01 $263,765 (-2.8%) $298,617 (-2.9%) 0.70 654
2021-09-01 $264,000 (-1.7%) $303,367 (-2.0%) 0.70 640
2021-10-01 $264,900 (1.9%) $305,291 (-0.1%) 0.71 590
2021-11-01 $264,746 (0.9%) $304,550 (-2.0%) 0.71 561
2021-12-01 $278,332 (5.5%) $321,667 (1.9%) 0.75 484
2022-01-01 $306,520 (15.7%) $340,711 (7.6%) 0.83 414
2022-02-01 $312,995 (14.0%) $341,601 (6.8%) 0.81 416
2022-03-01 $322,490 (16.7%) $347,593 (12.4%) 0.81 444
2022-04-01 $324,900 (15.7%) $347,513 (12.8%) 0.77 449
2022-05-01 $326,945 (16.8%) $357,804 (17.7%) 0.75 521
2022-06-01 $323,160 (24.1%) $357,922 (21.4%) 0.72 570
2022-07-01 $319,000 (18.2%) $353,553 (17.6%) 0.72 618
2022-08-01 $324,900 (23.2%) $356,868 (19.5%) 0.75 606
2022-09-01 $329,200 (24.7%) $363,824 (19.9%) 0.77 597
2022-10-01 $340,000 (28.4%) $365,063 (19.6%) 0.80 598
2022-11-01 $339,900 (28.4%) $359,741 (18.1%) 0.82 585
2022-12-01 $345,000 (24.0%) $361,239 (12.3%) 0.85 565
2023-01-01 $348,625 (13.7%) $362,814 (6.5%) 0.86 525
2023-02-01 $358,650 (14.6%) $373,752 (9.4%) 0.87 479
2023-03-01 $355,720 (10.3%) $373,584 (7.5%) 0.84 468
2023-04-01 $342,805 (5.5%) $368,381 (6.0%) 0.80 449
2023-05-01 $349,900 (7.0%) $374,042 (4.5%) 0.79 484
2023-06-01 $348,975 (8.0%) $378,085 (5.6%) 0.78 511
2023-07-01 $332,245 (4.2%) $379,103 (7.2%) 0.76 566
2023-08-01 $337,495 (3.9%) $388,188 (8.8%) 0.78 604
2023-09-01 $329,995 (0.2%) $381,126 (4.8%) 0.77 656
2023-10-01 $322,450 (-5.2%) $374,134 (2.5%) 0.76 714
2023-11-01 $317,944 (-6.5%) $362,608 (0.8%) 0.76 742
2023-12-01 $316,206 (-8.4%) $357,030 (-1.2%) 0.77 684
2024-01-01 $324,990 (-6.8%) $370,567 (2.1%) 0.79 604
2024-02-01 $337,490 (-5.9%) $381,468 (2.1%) 0.81 526
2024-03-01 $339,900 (-4.5%) $392,169 (5.0%) 0.80 505
2024-04-01 $339,993 (-0.8%) $411,676 (11.8%) 0.79 523
2024-05-01 $369,454 (5.6%) $426,610 (14.1%) 0.84 540
2024-06-01 $373,069 (6.9%) $426,318 (12.8%) 0.84 587
York's median listing price for 2024-06-01 was $373,069, a difference of $24,094 (6.9%) versus the prior year and $3,615 versus the prior month.

York's median listing price comes in at 84% of the national average.

York's average listing price for 2024-06-01 was $426,318, a difference of $48,233 (12.8%) versus the prior year and $-292 versus the prior month.

For the 2024-06-01 period, York had 587 MLS listings, a difference of 47 listings (9%) versus the prior month and 76 listings (15%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - York (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 85 days 1,837 sqft
2018-02-01 79 days 1,843 sqft
2018-03-01 60 days 1,846 sqft
2018-04-01 49 days 1,860 sqft
2018-05-01 44 days 1,872 sqft
2018-06-01 46 days 2,060 sqft
2018-07-01 52 days 2,017 sqft
2018-08-01 54 days 2,013 sqft
2018-09-01 57 days 2,000 sqft
2018-10-01 58 days 1,988 sqft
2018-11-01 58 days 1,949 sqft
2018-12-01 65 days 1,909 sqft
2019-01-01 75 days 1,873 sqft
2019-02-01 78 days 1,874 sqft
2019-03-01 63 days 1,892 sqft
2019-04-01 48 days 1,921 sqft
2019-05-01 44 days 1,960 sqft
2019-06-01 47 days 1,982 sqft
2019-07-01 47 days 2,025 sqft
2019-08-01 50 days 2,045 sqft
2019-09-01 54 days 2,040 sqft
2019-10-01 56 days 2,031 sqft
2019-11-01 61 days 1,996 sqft
2019-12-01 69 days 1,972 sqft
2020-01-01 70 days 1,959 sqft
2020-02-01 59 days 1,977 sqft
2020-03-01 42 days 2,030 sqft
2020-04-01 62 days 2,070 sqft
2020-05-01 67 days 2,072 sqft
2020-06-01 41 days 2,012 sqft
2020-07-01 40 days 2,053 sqft
2020-08-01 40 days 2,064 sqft
2020-09-01 37 days 1,996 sqft
2020-10-01 48 days 1,976 sqft
2020-11-01 51 days 1,950 sqft
2020-12-01 58 days 1,939 sqft
2021-01-01 66 days 1,920 sqft
2021-02-01 61 days 1,893 sqft
2021-03-01 42 days 1,905 sqft
2021-04-01 38 days 1,909 sqft
2021-05-01 37 days 1,909 sqft
2021-06-01 36 days 1,865 sqft
2021-07-01 38 days 1,870 sqft
2021-08-01 38 days 1,861 sqft
2021-09-01 45 days 1,846 sqft
2021-10-01 51 days 1,880 sqft
2021-11-01 45 days 1,844 sqft
2021-12-01 50 days 1,855 sqft
2022-01-01 49 days 1,902 sqft
2022-02-01 39 days 1,900 sqft
2022-03-01 38 days 1,920 sqft
2022-04-01 38 days 1,950 sqft
2022-05-01 35 days 1,944 sqft
2022-06-01 34 days 1,960 sqft
2022-07-01 37 days 1,983 sqft
2022-08-01 36 days 1,955 sqft
2022-09-01 44 days 2,001 sqft
2022-10-01 48 days 2,026 sqft
2022-11-01 51 days 2,009 sqft
2022-12-01 54 days 2,000 sqft
2023-01-01 61 days 2,001 sqft
2023-02-01 50 days 2,068 sqft
2023-03-01 43 days 2,024 sqft
2023-04-01 39 days 1,976 sqft
2023-05-01 33 days 2,009 sqft
2023-06-01 36 days 1,994 sqft
2023-07-01 35 days 1,958 sqft
2023-08-01 34 days 1,965 sqft
2023-09-01 37 days 1,967 sqft
2023-10-01 41 days 1,934 sqft
2023-11-01 40 days 1,922 sqft
2023-12-01 49 days 1,900 sqft
2024-01-01 59 days 1,914 sqft
2024-02-01 53 days 1,919 sqft
2024-03-01 40 days 1,924 sqft
2024-04-01 37 days 1,942 sqft
2024-05-01 28 days 2,036 sqft
2024-06-01 31 days 2,047 sqft
York's median listing age (time on market) for 2024-06-01 was 31 days. This is -13% shorter than the same period one year ago.

York's median square footage for active listings during the 2024-06-01 period was 2,047 sqft. One year prior, the average listing was 1,994 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).