Arizona FHA Loan Rates, Closing Costs & Stats

Arizona

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.

Arizona FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Arizona averaged 6.08% for the week of 2023-01-27, compared to the national average (all FHA variants) of 6.186% for the same period.

Arizona's average FHA mortgage closing costs are $7,624.

The average rate for the prior week (2023-01-20) was 6.05% and one month ago for the week of 2022-12-23, the average rate was 6.14%.

The average rate one year ago was 3.63%.

For refis of the same type during the week of 2023-01-27, the average rate was 6.08%.

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

Arizona 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 Arizona level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Closing Costs
QUICKEN LOANS, LLC 2,638 2.64% $7,025
NOVA FINANCIAL & INVESTMENT CORPORATION 2,622 3.35% $7,343
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 2,276 3.44% $9,885
UNITED WHOLESALE MORTGAGE, LLC 1,488 2.70% $8,436
FREEDOM MORTGAGE CORPORATION 1,331 2.77% $5,331
LAKEVIEW LOAN SERVICING, LLC 1,208 2.89% $4,909
LOANDEPOT.COM, LLC 1,207 3.36% $9,709
GUILD MORTGAGE COMPANY 1,186 3.15% $8,612
Amerifirst Financial, Inc. 889 3.21% $8,666
Mr. Cooper ( Nationstar Mortgage ) 751 3.22% $5,118
V.I.P. MORTGAGE, INC. 721 3.25% $9,587
PENNYMAC LOAN SERVICES, LLC 682 3.00% $5,349
DHI MORTGAGE COMPANY, LTD. 671 3.05% $8,484
CALIBER HOME LOANS, INC. 650 2.91% $7,197
Lakeview Community Capital, LLC 491 2.90% $4,822
SUNSTREET MORTGAGE, LLC 477 3.23% $8,042
SECURITYNATIONAL MORTGAGE COMPANY 449 3.75% $12,126
CROSSCOUNTRY MORTGAGE, LLC 444 3.22% $10,164
ACADEMY MORTGAGE CORPORATION 422 3.18% $9,964
BROKER SOLUTIONS, INC. 411 3.24% $8,783
NEWREZ LLC 409 2.94% $5,405
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 400 3.25% $9,704
MORIA DEVELOPMENT, INC. 390 3.38% $10,456
HOME POINT FINANCIAL CORPORATION 354 2.75% $8,030
Neighborhood Loans, Inc. 347 3.49% $9,754
HOMEBRIDGE FINANCIAL SERVICES, INC. 343 2.63% $5,791
Carrington Mortgage Services, LLC 337 3.41% $8,517
FINANCE OF AMERICA MORTGAGE LLC 323 3.23% $9,866
GENEVA FINANCIAL, LLC 302 3.39% $10,449
Paramount Residential Mortgage Group, Inc. 295 3.11% $8,195
BAY EQUITY LLC 294 3.21% $9,950
VILLAGE CAPITAL MORTGAGE 285 2.87% $2,705
HOMEOWNERS FINANCIAL GROUP USA, LLC 280 3.23% $9,842
NFM, INC. 278 3.31% $10,714
AMERICAN FINANCIAL NETWORK, INC. 275 3.07% $10,879
ALTITUDE FINANCIAL CORPORATION 251 3.06% $6,668
EAGLE HOME MORTGAGE, LLC 238 3.29% $11,240
Wallick & Volk, Inc. 237 3.55% $9,649
LHM FINANCIAL CORPORATION 216 3.03% $8,889
GUARANTEED RATE, INC. 210 3.08% $9,289
HOMEAMERICAN MORTGAGE CORPORATION 210 2.85% $6,054
PRIMARY RESIDENTIAL MORTGAGE, INC. 202 3.48% $9,697
PRIMELENDING, A PLAINSCAPITAL COMPANY 195 3.35% $10,120
KBHS HOME LOANS, LLC 194 3.35% $11,423
AMERICAN PACIFIC MORTGAGE CORPORATION 191 3.10% $9,458
AmeriHome Mortgage Company, LLC 189 2.90% $4,517
SUN WEST MORTGAGE COMPANY, INC. 172 2.99% $8,117
INSPIRE HOME LOANS INC. 166 3.34% $8,793
SUMMIT FUNDING, INC. 165 3.30% $10,334
AMERISAVE MORTGAGE CORPORATION 161 2.96% $8,940
NEW WEST LENDING, INC. 157 2.98% $8,831
PULTE MORTGAGE LLC 149 3.10% $5,793
MOVEMENT MORTGAGE, LLC 145 3.31% $8,600
First Guaranty Mortgage Corporation 144 2.84% $5,947
PLANET HOME LENDING, LLC 144 2.74% $5,904
Waterstone Mortgage Corporation 138 3.20% $10,259
South Pacific Financial Corporation 136 2.73% $11,493
Gateway First Bank 132 3.42% $8,665
LOANPAL, LLC 128 2.59% $9,833
Nations Lending Corporation 125 3.20% $11,234
CMG MORTGAGE, INC. 125 3.12% $9,278
ON Q FINANCIAL, INC. 125 3.12% $10,051
Lend Smart Mortgage, LLC 121 3.26% $9,141
Commerce Home Mortgage, Inc. 112 3.13% $9,049
Hometown Lenders, Inc. 110 3.43% $9,295
ARK-LA-TEX FINANCIAL SERVICES, LLC. 107 3.38% $8,606
SUBURBAN MORTGAGE, INC. 101 3.03% $8,275
AMERICAN FINANCING CORPORATION 101 2.80% $8,153
ALL WESTERN MORTGAGE, INC. 101 3.46% $10,234
LEADERONE FINANCIAL CORPORATION 94 3.30% $9,239
SUN AMERICAN MORTGAGE COMPANY 93 3.18% $8,329
MID AMERICA MORTGAGE, INC. 92 3.06% $4,198
K. HOVNANIAN AMERICAN MORTGAGE, L.L.C. 91 3.15% $10,213
Flagstar Bank, FSB 82 2.77% $8,478
MATTAMY HOME FUNDING, LLC 80 2.64% $11,586
InterContinental Capital Group, Inc 79 2.67% $7,358
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 79 3.41% $9,536
Home Mortgage Alliance Corp 77 3.14% $11,488
Prosperity Home Mortgage, LLC 77 3.29% $8,580
ENVOY MORTGAGE, LTD 75 3.44% $9,748
AMERICAN FINANCIAL RESOURCES, INC. 72 3.08% $7,168
CELEBRITY HOME LOANS, LLC 72 3.17% $10,649
PANORAMA MORTGAGE GROUP, LLC 70 3.33% $9,132
CITYWIDE HOME LOANS, LLC 67 3.13% $9,858
Equity Prime Mortgage LLC 66 3.43% $9,104
RESIDENTIAL BANCORP. 66 3.29% $9,747
SOVEREIGN LENDING GROUP INCORPORATED 63 2.78% $8,767
PLAZA HOME MORTGAGE, INC. 62 2.84% $9,365
MANN FINANCIAL INC. 61 3.41% $10,251
SWBC MORTGAGE CORPORATION 61 3.88% $9,271
STARBOARD FINANCIAL MANAGEMENT, LLC 59 3.19% $9,203
BROOKHOLLOW MORTGAGE SERVICES, LTD 56 3.15% $12,075
STEARNS LENDING, LLC 55 3.11% $8,713
MICHIGAN MUTUAL, INC. 49 3.51% $10,949
Sunflower Bank 49 3.36% $10,035
AMCAP MORTGAGE, LTD. 47 3.32% $9,558
The Federal Savings Bank 47 2.82% $11,049
TOP FLITE FINANCIAL, INC. 47 3.33% $13,639
Bell Bank 45 3.18% $9,139
PREMIER LENDING, INC. 45 3.32% $9,346
FBC MORTGAGE, LLC 42 3.09% $9,224
GUARANTEED RATE AFFINITY, LLC 40 2.93% $9,010
NATIONS DIRECT MORTGAGE, LLC 39 3.25% $9,130
GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 39 3.06% $10,980
UNION HOME MORTGAGE CORP. 39 3.09% $9,414
INTERCAP LENDING INC. 38 3.40% $11,105
VELOCIO MORTGAGE L.L.C. 37 3.35% $13,825
AXIA FINANCIAL, LLC 36 3.38% $9,808
TOWNE MORTGAGE COMPANY 33 3.01% $9,701
BEST CAPITAL FUNDING 32 3.23% $9,999
Barrington Bank & Trust Company, N.A. 30 3.21% $8,276
ARC HOME LLC 30 2.88% $8,902
Loan Simple, Inc. 30 3.23% $10,939
SOUTHWEST STAGE FUNDING, LLC 29 3.13% $4,987
MUTUAL OF OMAHA MORTGAGE, INC. 28 2.86% $8,755
FIRST CENTENNIAL MORTGAGE CORPORATION 27 3.17% $9,002
IDEAL HOME LOANS LLC 27 2.79% $9,560
LAND HOME FINANCIAL SERVICES, INC. 27 3.71% $12,387
OCEANSIDE MORTGAGE COMPANY 26 2.81% $3,494
DATA MORTGAGE, INC. 26 3.89% $10,617
First Option Mortgage, LLC 26 3.37% $11,342
U.S. Bank 25 3.09% $7,471
Utah Mortgage Loan Corporation 25 3.25% $9,200
HOMESIDE FINANCIAL, LLC 24 3.06% $9,954
JPMorgan Chase Bank 24 2.98% $6,478
Pacific Lending LLC 23 2.97% $8,116
PHH Mortgage Corporation 23 3.05% $6,791
CHERRY CREEK MORTGAGE, LLC 21 3.49% $4,780
INTERNATIONAL CITY MORTGAGE, INC. 21 3.58% $10,300
GoPrime Mortgage, Inc. 20 3.70% $10,486
LADERA LENDING, INC. 20 2.96% $7,374
CANOPY MORTGAGE, LLC 19 2.36% $8,741
CORNERSTONE HOME LENDING, INC. 19 3.41% $11,259
Watermark Capital, Inc. 19 2.92% $8,442
ML Mortgage Corp. 19 3.30% $9,644
M&T Bank 19 3.12% $7,670
First National Bank Texas 18 3.21% $9,182
MORTGAGE SOLUTIONS OF COLORADO, LLC 18 3.24% $11,359
DIRECTORS MORTGAGE, INC. 18 3.49% $11,545
CHURCHILL MORTGAGE CORPORATION 17 3.10% $10,301
Austin Capital Bank SSB 17 3.51% $10,650
DIRECT MORTGAGE, CORP. 16 2.67% $14,138
Bank of America 16 2.93% $5,633
INTELLILOAN, INC. 16 2.86% $8,964
UNITED SECURITY FINANCIAL CORP 16 2.71% $6,580
MOUNTAIN WEST FINANCIAL, INC. 15 3.13% $10,130
ZILLOW HOME LOANS, LLC 15 2.88% $8,074
OCMBC, INC. 15 3.20% $9,758
LOANLEADERS OF AMERICA, INC. 14 2.88% $11,340
DAS Acquisition Company, LLC 14 3.55% $9,786
Sierra Pacific Mortgage Company, Inc. 13 2.84% $8,801
CLEARPATH LENDING 13 2.88% $5,491
NETWORK CAPITAL FUNDING CORPORATION 13 3.34% $9,400
KELLER MORTGAGE, LLC 13 2.71% $7,530
Wells Fargo Bank 13 3.39% $6,011
ARIZONA 12 3.01% $7,536
EVERETT FINANCIAL, INC. 12 3.54% $7,517
VERITAS FUNDING, LLC 12 2.88% $11,207
BOKF 12 2.93% $9,813
ISERVE RESIDENTIAL LENDING, LLC 12 3.79% $10,669
RELIANCE FIRST CAPITAL, LLC 12 2.91% $10,643
Hometown Equity Mortgage, LLC 11 4.15% $10,626
WESTERN EXPRESS LENDING 10 2.43% $7,892
INTERLINC MORTGAGE SERVICES, LLC 10 3.45% $9,379
TJC Mortgage, Inc. 10 3.04% $8,021
EMBRACE HOME LOANS, INC. 10 3.02% $9,145
Chickasaw Community Bank 10 2.80% $8,118
RESIDENTIAL WHOLESALE MORTGAGE, INC. 9 2.89% $7,954
Low VA Rates, LLC 9 2.97% $4,026
Shea Mortgage Inc. 9 2.83% $6,241
EVERGREEN MONEYSOURCE MORTGAGE COMPANY 9 3.61% $9,710
Bank of England 9 3.25% $12,044
SFMC, LP 8 3.11% $9,640
Franklin Loan Corporation 8 3.47% $12,309
COUNTRYPLACE MORTGAGE, LTD. 8 3.67% $11,367
MOUNTAIN AMERICA 8 2.81% $10,360
VANDERBILT MORTGAGE AND FINANCE, INC. 8 3.67% $10,457
Peoples Bank 8 3.41% $10,471
First Home Bank 7 3.27% $12,833
PARKSIDE LENDING, LLC 7 2.75% $7,730
ABSOLUTE HOME MORTGAGE CORPORATION 7 2.45% $7,212
Glacier Bank 7 3.02% $7,385
Prime Choice Funding Inc. 7 2.84% $8,287
PINNACLE LENDING GROUP, INC. 7 3.23% $10,579
MLD MORTGAGE INC. 7 3.01% $8,680
Strong Home Mortgage, LLC 7 2.50% $6,623
CITY FIRST MORTGAGE SERVICES, L.L.C. 6 3.23% $9,445
Alaska USA Federal Credit Union 6 2.98% $6,559
LENDUS, LLC 6 2.94% $9,267
Mortgage Research Center, LLC 6 3.10% $6,872
EMM LOANS LLC 6 3.27% $12,565
The Home Loan Expert LLC 6 2.89% $8,662
BELEM SERVICING LLC 6 3.04% $8,348
BECKAM FUNDING CORP. 6 3.60% $8,768
Financial Funding Solutions, Inc. 6 3.00% $8,445
Goldwater Bank, N.A. 6 3.33% $9,751
PACIFIC RESIDENTIAL MORTGAGE, LLC 6 3.75% $10,743
ONY GLO, INC. 6 3.27% $10,186
Century Mortgage Company DBA Century Lending Company 5 3.13% $10,599
AMERICAN PORTFOLIO MORTGAGE CORPORATION 5 3.33% $8,814
Wyndham Capital Mortgage, Inc. 5 2.95% $9,018
KS StateBank 5 2.80% $8,257
Plains Commerce Bank 5 3.18% $9,962
S1L, Inc. 5 3.35% $9,805
Network Funding, L.P. 4 2.81% $8,950
OPEN MORTGAGE, LLC 4 3.00% $7,682
SUCCESS MORTGAGE PARTNERS, INC. 4 3.97% $11,437
BAYSHORE MORTGAGE FUNDING, LLC 4 2.84% $6,859
BETTER MORTGAGE CORPORATION 3 2.75% $9,267
Evolve Bank & Trust 3 2.96% $7,708
First American Bank 3 2.71% $7,701
FirstBank 3 3.04% $9,383
First Western Trust Bank 3 2.71% $9,452
GSF Mortgage Corporation 3 3.13% $10,927
HUNT MORTGAGE CORPORATION 3 3.58% $7,927
INLAND BANK & TRUST 3 3.67% $9,351
JAMES B. NUTTER & COMPANY 3 2.96% $2,921
JMAC LENDING, INC. 3 2.96% $7,132
Magnolia Bank 3 3.08% $10,978
NATIONS RELIABLE LENDING, LLC 3 3.25% $8,208
NEXERA HOLDING LLC 3 2.71% $7,869
North American Savings Bank, F.S.B. 3 2.42% $6,205
Northpointe Bank 3 2.63% $11,026
THRIVE MORTGAGE, LLC 3 3.42% $8,670
UNITED MORTGAGE CORP. 3 2.79% $7,165
Victorian Finance, LLC 3 3.17% $10,437
Fidelity Bank 2 2.75% $8,209
The Union Bank Company 2 2.56% $6,767
ALAMEDA MORTGAGE CORPORATION 2 2.50% $8,263
ROYAL UNITED MORTGAGE LLC 2 3.19% $9,996
MUFG Union Bank 2 3.19% $8,361
DRAPER AND KRAMER MORTGAGE CORP. 2 3.13% $7,264
MASON MCDUFFIE MORTGAGE CORPORATION 2 3.00% $7,344
Umpqua Bank 2 2.94% $10,426
LIBERTY HOME MORTGAGE CORPORATION 2 3.75% $14,218
Academy Bank 2 3.00% $8,947
Colten Mortgage, LLC 2 2.63% $4,788
PREMIER MORTGAGE RESOURCES, L.L.C. 2 3.75% $11,169
LENDING 3, INC. 2 3.75% $6,707
Golden Empire Mortgage, Inc. 2 3.19% $11,927
Princeton Mortgage Corporation 2 3.06% $10,816
Florida Capital Bank 2 2.50% $9,691
NEW DAY FINANCIAL, LLC 2 3.12% $10,029
NBKC BANK 2 3.19% $7,100
CALCULATED RISK ANALYTICS LLC 2 3.25% $9,333
JMJ FINANCIAL GROUP 2 3.19% $11,040
BNC National Bank 2 3.00% $8,728
1st Security Bank of Washington 2 2.63% $9,583
VISION ONE MORTGAGE, INC. 2 2.81% $6,037
BBVA USA 2 3.56% $7,326
Bank of the West 2 3.50% $8,467
AmRes Corporation 2 3.44% $8,296
Texana Bank 2 2.88% $11,066
MEGA CAPITAL FUNDING, INC. 2 2.38% $8,301
Willamette Valley Bank 2 2.94% $10,122
Paramount Bank 2 2.50% $9,601
ROUNDPOINT MORTGAGE SERVICING CORPORATION 2 3.31% $7,906
NP, Inc. 2 2.88% $8,163
COMMUNITY MORTGAGE FUNDING, LLC 1 2.88% $7,674
Colonial Savings, F.A. 1 3.75% $9,404
Citizens Bank of Las Cruces 1 2.63% $10,210
Citizens Bank 1 3.00% $16,271
CHOICE LENDING CORP. 1 3.13% $6,789
VAN DYK MORTGAGE CORPORATION 1 3.13% $6,846
VANTAGE WEST 1 2.88% $8,404
CENTENNIAL LENDING, LLC 1 3.75% $13,372
Zions Bancorporation, N.A. 1 2.50% $6,034
AMERICAN ADVISORS GROUP 1 3.00% $9,461
AMERICA FIRST 1 2.50% $7,584
Opportunity Bank of Montana 1 2.88% $11,639
Platinum Home Mortgage Corporation 1 3.75% $9,429
PREMIA MORTGAGE, LLC 1 2.50% $5,782
NEST HOME LENDING, LLC 1 3.25% $10,152
NBH Bank 1 2.63% $11,114
NATIONWIDE MORTGAGE BANKERS, INC. 1 3.25% $13,956
NASA Federal Credit Union 1 2.88% $6,600
RADIUS FINANCIAL GROUP INC. 1 2.25% $9,839
RANLIFE, INC. 1 3.38% $9,118
MidFirst Bank 1 2.50% $5,220
Mid-Continent Funding, Inc. 1 2.88% $10,008
MEADOWBROOK FINANCIAL MORTGAGE BANKERS CORP. 1 2.88% $11,098
LENOX FINANCIAL MORTGAGE CORPORATION 1 3.63% $9,170
SIRVA MORTGAGE, INC. 1 3.63% $9,450
SIWELL, INC. 1 3.75% $10,190
KINECTA 1 3.13% $7,459
Ixonia Bank 1 3.00% $7,742
SRE MORTGAGE ALLIANCE INC. 1 2.75% $7,101
IDAHO CENTRAL 1 2.75% $13,169
HomeStreet Bank 1 3.00% $9,980
Stifel Bank and Trust 1 2.38% $5,161
HOMESTEAD FUNDING CORP. 1 2.88% $10,707
HighTechLending Inc 1 3.13% $8,532
HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 1 4.38% $12,417
FM Home Loans, LLC 1 2.75% $11,629
FISHER FINANCIAL GROUP, INCORPORATED 1 3.38% $6,753
First Savings Bank 1 2.75% $6,672
FIRST COMMUNITY MORTGAGE, INC. 1 2.38% $9,359
THE ANDERSON FINANCIAL GROUP, INC. 1 2.88% $10,314
FIRST COLONY MORTGAGE CORPORATION 1 3.00% $10,837
TIAA, FSB 1 2.75% $8,483
FBT Mortgage, L.L.C. 1 3.13% $11,582
COMPASS MORTGAGE, INC. 1 3.13% $8,104

The top Arizona FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 2,638 FHA loans originated. Their average total fees are $7,025, which is $318 lower than the next largest lender, NOVA FINANCIAL & INVESTMENT CORPORATION.

The lowest fee Arizona FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL MORTGAGE ($2,705), OCEANSIDE MORTGAGE COMPANY ($3,494), MID AMERICA MORTGAGE, INC. ($4,198), AmeriHome Mortgage Company, LLC ($4,517) and CHERRY CREEK MORTGAGE, LLC ($4,780).

The lowest rate Arizona FHA lenders (with over 10 loans originated) are CANOPY MORTGAGE, LLC (2.36%), WESTERN EXPRESS LENDING (2.43%), LOANPAL, LLC (2.59%), HOMEBRIDGE FINANCIAL SERVICES, INC. (2.63%) and MATTAMY HOME FUNDING, LLC (2.64%).

Arizona FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
NON-METRO APACHE 2022 $420,680 $538,650 $651,050 $809,150
SIERRA VISTA-DOUGLAS, AZ COCHISE 2022 $420,680 $538,650 $651,050 $809,150
FLAGSTAFF, AZ COCONINO 2022 $423,200 $541,750 $654,850 $813,850
PAYSON, AZ GILA 2022 $420,680 $538,650 $651,050 $809,150
SAFFORD, AZ GRAHAM 2022 $420,680 $538,650 $651,050 $809,150
NON-METRO GREENLEE 2022 $420,680 $538,650 $651,050 $809,150
NON-METRO LA PAZ 2022 $420,680 $538,650 $651,050 $809,150
PHOENIX-MESA-CHANDLER, AZ MARICOPA 2022 $441,600 $565,300 $683,350 $849,250
LAKE HAVASU CITY-KINGMAN, AZ MOHAVE 2022 $420,680 $538,650 $651,050 $809,150
SHOW LOW, AZ NAVAJO 2022 $420,680 $538,650 $651,050 $809,150
TUCSON, AZ PIMA 2022 $420,680 $538,650 $651,050 $809,150
PHOENIX-MESA-CHANDLER, AZ PINAL 2022 $441,600 $565,300 $683,350 $849,250
NOGALES, AZ SANTA CRUZ 2022 $420,680 $538,650 $651,050 $809,150
PRESCOTT VALLEY-PRESCOTT, AZ YAVAPAI 2022 $420,680 $538,650 $651,050 $809,150
YUMA, AZ YUMA 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).