West Virginia FHA Loan Rates, Closing Costs & Stats

West Virginia

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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.

    West Virginia FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in West Virginia averaged 0.07% for the week of 2024-11-15, compared to the national average (all FHA variants) of 0% for the same period.

    West Virginia's average FHA mortgage closing costs are $6,972.

    The average rate for the prior week (2024-11-08) was 6.28% and one month ago for the week of 2024-10-11, the average rate was 6.18%.

    The average rate one year ago was 7.33%.

    For refis of the same type during the week of 2024-11-15, the average rate was 0.57%.

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

    West Virginia 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 West Virginia level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    QUICKEN LOANS, LLC 545 6.36% $8,541
    MOVEMENT MORTGAGE, LLC 338 6.34% $7,250
    LOANDEPOT.COM, LLC 321 6.27% $7,782
    PRIMELENDING, A PLAINSCAPITAL COMPANY 285 6.29% $7,688
    The Huntington National Bank 212 6.27% $6,623
    Integrity Home Mortgage Corp 175 6.77% $12,832
    WesBanco 128 5.95% $6,891
    NVR Mortgage Finance, Inc. 124 5.88% $11,680
    Victorian Finance, LLC 101 6.65% $6,723
    UNITED WHOLESALE MORTGAGE, LLC 96 6.54% $10,446
    Gateway First Bank 88 6.88% $6,966
    BROKER SOLUTIONS, INC. 75 6.93% $9,509
    INTERCOASTAL MORTGAGE COMPANY 67 5.95% $7,577
    HOMESPIRE MORTGAGE CORPORATION 63 6.71% $11,012
    CROSSCOUNTRY MORTGAGE, LLC 62 6.97% $8,561
    Sierra Pacific Mortgage Company, Inc. 57 6.76% $11,643
    AMERISAVE MORTGAGE CORPORATION 56 6.18% $11,197
    Alcova Mortgage LLC 47 6.96% $5,618
    First Heritage Mortgage, LLC 45 5.66% $10,849
    Atlantic Union Bank 43 6.82% $9,008
    FREEDOM MORTGAGE CORPORATION 41 7.01% $12,914
    UNION HOME MORTGAGE CORP. 38 6.81% $9,475
    Truist 38 6.37% $7,076
    POLARIS HOME FUNDING CORP. 37 6.80% $8,980
    EAGLE HOME MORTGAGE, LLC 36 6.37% $15,653
    Flagstar Bank, FSB 34 6.58% $8,047
    Mr. Cooper ( Nationstar Mortgage ) 32 6.25% $13,154
    Mortgage Research Center, LLC 30 6.86% $6,167
    United Bank 27 6.21% $6,894
    DAS Acquisition Company, LLC 26 7.05% $10,383
    C & F Mortgage Corporation 24 6.62% $7,092
    JPMorgan Chase Bank 24 6.82% $6,072
    DHI MORTGAGE COMPANY, LTD. 23 5.71% $10,049
    Carrington Mortgage Services, LLC 22 6.63% $9,377
    U.S. Bank 22 6.55% $7,825
    NEWREZ LLC 22 6.59% $8,952
    PENNYMAC LOAN SERVICES, LLC 22 6.21% $11,307
    SUCCESS MORTGAGE PARTNERS, INC. 22 7.04% $8,743
    T2 FINANCIAL LLC 22 6.88% $10,991
    EMBRACE HOME LOANS, INC. 21 6.12% $9,363
    Atlantic Coast Mortgage, LLC 21 6.46% $12,805
    CBM Mortgage, Inc. 20 6.57% $10,987
    MORTGAGE SOLUTIONS OF COLORADO, LLC 20 6.96% $8,343
    TIDEWATER MORTGAGE SERVICES, INC. 19 6.55% $11,013
    GUARANTEED RATE, INC. 19 6.85% $9,840
    CALIBER HOME LOANS, INC. 18 6.86% $6,717
    First Federal Bank of the Midwest 17 5.61% $7,601
    Equity Prime Mortgage LLC 15 7.00% $10,039
    GSF Mortgage Corporation 15 6.45% $14,224
    Paramount Residential Mortgage Group, Inc. 14 6.73% $10,699
    AMERICAN FINANCIAL RESOURCES, INC. 14 6.65% $9,047
    NFM, INC. 13 6.97% $12,127
    LAKEVIEW LOAN SERVICING, LLC 12 6.19% $10,586
    K. HOVNANIAN AMERICAN MORTGAGE, L.L.C. 12 6.76% $12,475
    First National Bank of Pennsylvania 12 6.36% $8,041
    PLANET HOME LENDING, LLC 12 6.31% $9,034
    GUILD MORTGAGE COMPANY 12 6.46% $9,725
    Peoples Bank 11 6.48% $7,842
    Prosperity Home Mortgage, LLC 11 6.44% $9,901
    Blue Ridge Bank 10 6.64% $7,639
    PNC Bank 10 6.64% $7,355
    ZILLOW HOME LOANS, LLC 9 6.69% $11,393
    AMERICAN FINANCIAL NETWORK, INC. 9 7.24% $10,514
    MICHIGAN MUTUAL, INC. 9 6.39% $11,741
    STOCKTON MORTGAGE CORPORATION 9 7.67% $8,240
    LIBERTY HOME MORTGAGE CORPORATION 8 6.77% $13,548
    Citizens Bank 8 6.39% $9,378
    FIRST HOME MORTGAGE CORPORATION 8 6.94% $14,425
    CARDINAL FINANCIAL 8 6.00% $11,575
    M&T Bank 8 6.86% $8,354
    CMG MORTGAGE, INC. 7 6.02% $9,792
    FIDELITY DIRECT MORTGAGE, LLC 7 7.05% $11,708
    Towne Bank 7 6.16% $10,570
    SUN WEST MORTGAGE COMPANY, INC. 7 6.91% $14,496
    ACADEMY MORTGAGE CORPORATION 7 7.07% $12,533
    NORWICH COMMERCIAL GROUP, INC. 7 6.68% $11,047
    George Mason Mortgage, LLC 6 6.21% $10,693
    MILLENNIUM FINANCIAL GROUP, INC. 6 7.00% $7,145
    DEVELOPER'S MORTGAGE COMPANY 6 7.13% $6,101
    MYCUMORTGAGE, LLC 6 6.33% $7,753
    VILLAGE CAPITAL MORTGAGE 6 6.29% $10,268
    Fifth Third Bank 5 7.03% $5,209
    PENTAGON FEDERAL CREDIT UNION 5 5.80% $12,823
    The Federal Savings Bank 5 6.65% $18,235
    HOMESIDE FINANCIAL, LLC 5 7.12% $16,661
    Plains Commerce Bank 5 5.78% $14,031
    Nations Lending Corporation 5 7.13% $11,360
    Bank of England 5 6.38% $8,300
    SECURITYNATIONAL MORTGAGE COMPANY 5 6.15% $12,042
    Waterstone Mortgage Corporation 5 7.05% $9,454
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 4 6.31% $8,884
    Wells Fargo Bank 4 6.78% $8,542
    ROYAL UNITED MORTGAGE LLC 4 7.63% $9,199
    NBKC BANK 4 6.22% $7,322
    MID AMERICA MORTGAGE, INC. 4 6.03% $9,972
    AMERICAN FINANCING CORPORATION 4 6.28% $10,097
    SIWELL, INC. 4 6.63% $8,921
    STATE EMPLOYEES CREDIT UNION OF MARYLAND, INCORPORATED 3 6.29% $3,950
    MEMBER FIRST MORTGAGE, LLC 3 7.00% $6,432
    JAMS-01, INC. 3 6.38% $12,281
    Barrington Bank & Trust Company, N.A. 3 6.92% $6,817
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 3 6.08% $10,137
    Century Mortgage Company DBA Century Lending Company 3 6.33% $9,918
    Shore United Bank 3 5.83% $18,788
    AMERICAN PACIFIC MORTGAGE CORPORATION 2 6.44% $11,167
    Ixonia Bank 2 7.13% $6,254
    DRAPER AND KRAMER MORTGAGE CORP. 2 7.06% $14,470
    NATIONWIDE MORTGAGE BANKERS, INC. 2 7.12% $13,611
    Northpointe Bank 2 6.69% $11,286
    CONTOUR MORTGAGE CORPORATION 2 7.88% $12,231
    BAY CAPITAL MORTGAGE CORPORATION 2 6.56% $9,379
    1ST SIGNATURE LENDING, LLC 2 6.69% $10,897
    SWBC MORTGAGE CORPORATION 2 6.25% $5,744
    TOWNE MORTGAGE COMPANY 2 6.31% $6,390
    AmeriHome Mortgage Company, LLC 2 5.25% $17,937
    HOMEBRIDGE FINANCIAL SERVICES, INC. 2 5.81% $10,297
    Vellum Mortgage, Inc. 2 6.63% $14,077
    GoPrime Mortgage, Inc. 2 6.75% $6,389
    ON Q FINANCIAL, INC. 1 7.75% $8,825
    RUOFF MORTGAGE COMPANY, INC. 1 6.25% $3,411
    Sandy Spring Bank 1 6.75% $7,951
    North American Savings Bank, F.S.B. 1 5.25% $3,781
    DIRECT MORTGAGE LOANS, LLC 1 5.83% $8,011
    NETWORK CAPITAL FUNDING CORPORATION 1 6.25% $8,035
    ENVOY MORTGAGE, LTD 1 6.13% $12,587
    SOUTHWEST STAGE FUNDING, LLC 1 6.75% $4,349
    EVERETT FINANCIAL, INC. 1 6.13% $11,518
    MCLEAN MORTGAGE CORPORATION 1 6.38% $9,424
    Bank of America 1 6.13% $7,582
    MORIA DEVELOPMENT, INC. 1 5.63% $15,666
    FIRST COLONY MORTGAGE CORPORATION 1 7.25% $5,407
    ATLANTIC BAY MORTGAGE GROUP, L.L.C. 1 6.75% $13,871
    MLD MORTGAGE INC. 1 5.63% $25,168
    The Freedom Bank of Virginia 1 6.25% $8,524
    York Traditions Bank 1 5.50% $21,318
    THE MORTGAGE LINK, INC. 1 6.25% $11,353
    THRIVE MORTGAGE, LLC 1 7.00% $6,331
    ARC HOME LLC 1 6.13% $7,953
    TOTAL MORTGAGE SERVICES, LLC 1 6.63% $7,246
    Meridian Bank Corporation 1 7.13% $9,811
    KELLER MORTGAGE, LLC 1 6.13% $8,572
    Ameris Bank 1 5.75% $16,372
    First Federal Bank 1 5.63% $14,555
    Fulton Bank 1 6.63% $9,388
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 1 7.63% $8,609
    American Mortgage & Equity Consultants, Inc. 1 6.63% $13,526
    US MORTGAGE CORPORATION 1 7.75% $7,667
    PLAZA HOME MORTGAGE, INC. 1 6.50% $11,694
    PHH Mortgage Corporation 1 6.75% $11,160
    Capital Bank 1 5.63% $7,310
    PRIMARY RESIDENTIAL MORTGAGE, INC. 1 6.75% $15,015
    BAY EQUITY LLC 1 7.63% $8,590
    GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 1 6.25% $8,659
    CHURCHILL MORTGAGE CORPORATION 1 6.25% $7,978
    Renasant Bank 1 7.25% $5,305

    The top West Virginia FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 545 FHA loans originated. Their average total fees are $8,541, which is $1,291 higher than the next largest lender, MOVEMENT MORTGAGE, LLC.

    The lowest fee West Virginia FHA lenders (with over 10 loans originated) are Alcova Mortgage LLC ($5,618), JPMorgan Chase Bank ($6,072), Mortgage Research Center, LLC ($6,167), The Huntington National Bank ($6,623) and CALIBER HOME LOANS, INC. ($6,717).

    The lowest rate West Virginia FHA lenders (with over 10 loans originated) are First Federal Bank of the Midwest (5.61%), First Heritage Mortgage, LLC (5.66%), DHI MORTGAGE COMPANY, LTD. (5.71%), NVR Mortgage Finance, Inc. (5.88%) and INTERCOASTAL MORTGAGE COMPANY (5.95%).

    West Virginia FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    NON-METRO BARBOUR 2022 $420,680 $538,650 $651,050 $809,150
    HAGERSTOWN-MARTINSBURG, MD-WV BERKELEY 2022 $420,680 $538,650 $651,050 $809,150
    CHARLESTON, WV BOONE 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO BRAXTON 2022 $420,680 $538,650 $651,050 $809,150
    WEIRTON-STEUBENVILLE, WV-OH BROOKE 2022 $420,680 $538,650 $651,050 $809,150
    HUNTINGTON-ASHLAND, WV-KY-OH CABELL 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO CALHOUN 2022 $420,680 $538,650 $651,050 $809,150
    CHARLESTON, WV CLAY 2022 $420,680 $538,650 $651,050 $809,150
    CLARKSBURG, WV DODDRIDGE 2022 $420,680 $538,650 $651,050 $809,150
    BECKLEY, WV FAYETTE 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO GILMER 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO GRANT 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO GREENBRIER 2022 $420,680 $538,650 $651,050 $809,150
    WINCHESTER, VA-WV HAMPSHIRE 2022 $420,680 $538,650 $651,050 $809,150
    WEIRTON-STEUBENVILLE, WV-OH HANCOCK 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO HARDY 2022 $420,680 $538,650 $651,050 $809,150
    CLARKSBURG, WV HARRISON 2022 $420,680 $538,650 $651,050 $809,150
    CHARLESTON, WV JACKSON 2022 $420,680 $538,650 $651,050 $809,150
    WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV JEFFERSON 2022 $970,800 $1,243,050 $1,502,475 $1,867,275
    CHARLESTON, WV KANAWHA 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO LEWIS 2022 $420,680 $538,650 $651,050 $809,150
    CHARLESTON, WV LINCOLN 2022 $420,680 $538,650 $651,050 $809,150
    MOUNT GAY-SHAMROCK, WV LOGAN 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO MCDOWELL 2022 $420,680 $538,650 $651,050 $809,150
    FAIRMONT, WV MARION 2022 $420,680 $538,650 $651,050 $809,150
    WHEELING, WV-OH MARSHALL 2022 $420,680 $538,650 $651,050 $809,150
    POINT PLEASANT, WV-OH MASON 2022 $420,680 $538,650 $651,050 $809,150
    BLUEFIELD, WV-VA MERCER 2022 $420,680 $538,650 $651,050 $809,150
    CUMBERLAND, MD-WV MINERAL 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO MINGO 2022 $420,680 $538,650 $651,050 $809,150
    MORGANTOWN, WV MONONGALIA 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO MONROE 2022 $420,680 $538,650 $651,050 $809,150
    HAGERSTOWN-MARTINSBURG, MD-WV MORGAN 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO NICHOLAS 2022 $420,680 $538,650 $651,050 $809,150
    WHEELING, WV-OH OHIO 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO PENDLETON 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO PLEASANTS 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO POCAHONTAS 2022 $420,680 $538,650 $651,050 $809,150
    MORGANTOWN, WV PRESTON 2022 $420,680 $538,650 $651,050 $809,150
    HUNTINGTON-ASHLAND, WV-KY-OH PUTNAM 2022 $420,680 $538,650 $651,050 $809,150
    BECKLEY, WV RALEIGH 2022 $420,680 $538,650 $651,050 $809,150
    ELKINS, WV RANDOLPH 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO RITCHIE 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO ROANE 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO SUMMERS 2022 $420,680 $538,650 $651,050 $809,150
    CLARKSBURG, WV TAYLOR 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO TUCKER 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO TYLER 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO UPSHUR 2022 $420,680 $538,650 $651,050 $809,150
    HUNTINGTON-ASHLAND, WV-KY-OH WAYNE 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO WEBSTER 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO WETZEL 2022 $420,680 $538,650 $651,050 $809,150
    PARKERSBURG-VIENNA, WV WIRT 2022 $420,680 $538,650 $651,050 $809,150
    PARKERSBURG-VIENNA, WV WOOD 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO WYOMING 2022 $420,680 $538,650 $651,050 $809,150
    NON-METRO BARBOUR 2023 $472,030 $604,400 $730,525 $907,900
    HAGERSTOWN-MARTINSBURG, MD-WV BERKELEY 2023 $472,030 $604,400 $730,525 $907,900
    CHARLESTON, WV BOONE 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO BRAXTON 2023 $472,030 $604,400 $730,525 $907,900
    WEIRTON-STEUBENVILLE, WV-OH BROOKE 2023 $472,030 $604,400 $730,525 $907,900
    HUNTINGTON-ASHLAND, WV-KY-OH CABELL 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO CALHOUN 2023 $472,030 $604,400 $730,525 $907,900
    CHARLESTON, WV CLAY 2023 $472,030 $604,400 $730,525 $907,900
    CLARKSBURG, WV DODDRIDGE 2023 $472,030 $604,400 $730,525 $907,900
    BECKLEY, WV FAYETTE 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO GILMER 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO GRANT 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO GREENBRIER 2023 $472,030 $604,400 $730,525 $907,900
    WINCHESTER, VA-WV HAMPSHIRE 2023 $472,030 $604,400 $730,525 $907,900
    WEIRTON-STEUBENVILLE, WV-OH HANCOCK 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO HARDY 2023 $472,030 $604,400 $730,525 $907,900
    CLARKSBURG, WV HARRISON 2023 $472,030 $604,400 $730,525 $907,900
    CHARLESTON, WV JACKSON 2023 $472,030 $604,400 $730,525 $907,900
    WASHINGTON-ARLINGTON-ALEXANDRIA, DC-VA-MD-WV JEFFERSON 2023 $1,089,300 $1,394,775 $1,685,850 $2,095,200
    CHARLESTON, WV KANAWHA 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO LEWIS 2023 $472,030 $604,400 $730,525 $907,900
    CHARLESTON, WV LINCOLN 2023 $472,030 $604,400 $730,525 $907,900
    MOUNT GAY-SHAMROCK, WV LOGAN 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO MCDOWELL 2023 $472,030 $604,400 $730,525 $907,900
    FAIRMONT, WV MARION 2023 $472,030 $604,400 $730,525 $907,900
    WHEELING, WV-OH MARSHALL 2023 $472,030 $604,400 $730,525 $907,900
    POINT PLEASANT, WV-OH MASON 2023 $472,030 $604,400 $730,525 $907,900
    BLUEFIELD, WV-VA MERCER 2023 $472,030 $604,400 $730,525 $907,900
    CUMBERLAND, MD-WV MINERAL 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO MINGO 2023 $472,030 $604,400 $730,525 $907,900
    MORGANTOWN, WV MONONGALIA 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO MONROE 2023 $472,030 $604,400 $730,525 $907,900
    HAGERSTOWN-MARTINSBURG, MD-WV MORGAN 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO NICHOLAS 2023 $472,030 $604,400 $730,525 $907,900
    WHEELING, WV-OH OHIO 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO PENDLETON 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO PLEASANTS 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO POCAHONTAS 2023 $472,030 $604,400 $730,525 $907,900
    MORGANTOWN, WV PRESTON 2023 $472,030 $604,400 $730,525 $907,900
    HUNTINGTON-ASHLAND, WV-KY-OH PUTNAM 2023 $472,030 $604,400 $730,525 $907,900
    BECKLEY, WV RALEIGH 2023 $472,030 $604,400 $730,525 $907,900
    ELKINS, WV RANDOLPH 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO RITCHIE 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO ROANE 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO SUMMERS 2023 $472,030 $604,400 $730,525 $907,900
    CLARKSBURG, WV TAYLOR 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO TUCKER 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO TYLER 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO UPSHUR 2023 $472,030 $604,400 $730,525 $907,900
    HUNTINGTON-ASHLAND, WV-KY-OH WAYNE 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO WEBSTER 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO WETZEL 2023 $472,030 $604,400 $730,525 $907,900
    PARKERSBURG-VIENNA, WV WIRT 2023 $472,030 $604,400 $730,525 $907,900
    PARKERSBURG-VIENNA, WV WOOD 2023 $472,030 $604,400 $730,525 $907,900
    NON-METRO WYOMING 2023 $472,030 $604,400 $730,525 $907,900

    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).