Revised 3/25/14 - The Facts About FHA Loans In Westchester County NY

Real Estate Agent with William Raveis Legends Realty Group 30PA1082583


If you don't already know, the FHA loan in Westchester County NY has become wildly popular over the past few years, partly because lenders have raised the requirements for other loans.  The FHA also known as the Federal Housing Administration doesn't actually fund loans, the insure them for FHA approved lenders.  As a Westchester County Buyers Agent I have closed more FHA loans this past year then ever before.  The attraction to these loans are the minimum of 3.5% down payment requirement, the ability to finance closing costs up to 6% of the purchase price, and the ability to qualify with less then perfect credit.

Although the minimum credit score changes with the times it is currently a minimum of 620-640 for the 3.5% minimum requirement and anything less will require a 10% down payment.  You should also know that these credit requirements are the FHA guidelines, you will have to find a bank that will work with the lower scores.  I've been told by an FHA specialist that 640 is what a lot of banks were looking for but some are going lower.  Wells Fargo recently went down to 600 and Carrington Mortgage services just went to 550.  These guidelines change often so be sure to ask your loan officer for the latest.

The FHA does not back loans for Coops, they do back loans for condos but are limited to those on the FHA approved list.  To see if a certain condo is on the approved list you can visit the following link,  All FHA loans require mortgage insurance and there is also an upfront mortgage insurance premium of 1 3/4% that can be financed.

The FHA loan limits for Westchester County NY are $625,500 for single family homes and $800,775 for two family homes.  As of January 31, 2013 the FHA will be raising DTI guidelines for borrowers with low credit scores. FHA will require borrowers with credit scores below 620 to have a maximum DTI (debt to income ratio) of 43%

These are the basics, you will need to speak with an FHA specialist to see if you will qualify.  Please note that I am not a loan officer, I am a Westchester County Buyers Agent that specializes in FHA & conventional loans

Christopher Pagli -
Accredited Buyer Representative
Real Estate Associate Broker
William Raveis Legends Realty Group
914.332.6300 office
914.406.9023 cell

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Christopher Pagli

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