New York FHA Loan Requirements – New York FHA Lenders 2021

new york fha loans

Home buyers in New York who need a small down payment or have poor credit scores may be able to purchase a home with an FHA loan. There are many FHA lenders in New York who offer this amazing mortgage, but not all of them participate in all of the FHA loan options available.

FHA loans are perfect for New Yorkers because home prices are higher in some areas and there are many multi-family homes available in New York. With the small down payment requirements, FHA loans make home buying in New York extremely affordable.

We will take you through the New York FHA loan requirements, detail what is needed to qualify, then help you to get pre-qualified. If you already know that an FHA loan is right for you, then we can help you to find New York FHA lenders and get pre-qualified whether you live in the 5 boroughs of New York City, or upstate New York in the Albany, Buffalo or Syracuse areas.

New York FHA Loan Requirements for 2021

These are the basic FHA loan requirements for this year. All of these must be met to be approved for an FHA loan. If you are not positive on whether you meet these standards or have questions, an FHA lender can help.

  • Down payment of 3.5% or 10% if your credit score is below 580
  • 2-year employment history with some exceptions allowed
  • Fully document your income for the past two years
  • Minimum FICO score requirement of 500 – down payment will vary
  • Mortgage Insurance Premium (MIP) is required for every FHA loan
  • Maximum debt to income ratio of 43% with exceptions up to 56%
  • The home must be your primary residence
  • No bankruptcies or foreclosures in the past two years

New York FHA Loan Benefits

These are the benefits of an FHA loan versus a conventional loan:

  • Lower credit scores permitted
  • Lower down payment requirement
  • FHA interest rates are lower than conventional rates
  • Gift funds allowed
  • Seller closing cost contributions are allowed
  • FHA loans are assumable
  • Co-signers allowed
  • Higher debt to income ratios permitted

New York FHA lenders

The best New York FHA lenders will offer every FHA loan product and will accept borrowers who also have poor credit. Below are the things that you should look for in an FHA lender:

  • Accept credit scores as low as 500
  • Will offer FHA 203k rehab loans
  • Will offer down payment assistance
  • Will have very few overlays
  • Will have competitive rates

Let us help you to find the best FHA lender in your area by completing this FHA loan scenario form with some basic loan scenario information. No credit report will be pulled and we can connect you with the best option.

New York FHA Down Payment Requirements

The down payment requirements for an FHA loan is the same in every state. The minimum requirement for an FHA loan is 3.5% of the purchase price. However, if your credit score is below 580, then the down payment requirement will be 10%.

If you do not have the down payment needed, you can also use gift funds from a relative.

New York FHA Down Payment Assistance

There are various down payment assistance programs in every state. Below is a list of just a few down payment assistance programs that may be available to you in New York. Home buyers will need to contact, and arrange for these programs independently. Lenders will accept the funds from these programs for your down payment but they will not arrange for the down payment assistance.

HOME Down Payment Assistance Program

HOME Plus Program

Pathway to Purchase Down Payment Assistance

New York FHA Loan Limits

Every county in the United States has specific maximum loan limits that are set for single family homes, as well as 2-4 unit properties. The limits are set based upon the average home sales value in that county. The base FHA loan limit for single family residences in New York for most counties is $331,760. Use this FHA loan limit lookup tool to see what the FHA loan limits are in your county.

County Name Single Family 2 Units 3 Units 4 Units
ALBANY $331,760 $424,800 $513,450 $638,100
ALLEGANY $331,760 $424,800 $513,450 $638,100
BRONX $765,600 $980,325 $1,184,925 $1,472,550
BROOME $331,760 $424,800 $513,450 $638,100
CATTARAUGUS $331,760 $424,800 $513,450 $638,100
CAYUGA $331,760 $424,800 $513,450 $638,100
CHAUTAUQUA $331,760 $424,800 $513,450 $638,100
CHEMUNG $331,760 $424,800 $513,450 $638,100
CHENANGO $331,760 $424,800 $513,450 $638,100
CLINTON $331,760 $424,800 $513,450 $638,100
COLUMBIA $331,760 $424,800 $513,450 $638,100
CORTLAND $331,760 $424,800 $513,450 $638,100
DELAWARE $331,760 $424,800 $513,450 $638,100
DUTCHESS $356,500 $456,350 $551,650 $685,550
ERIE $331,760 $424,800 $513,450 $638,100
ESSEX $331,760 $424,800 $513,450 $638,100
FRANKLIN $331,760 $424,800 $513,450 $638,100
FULTON $331,760 $424,800 $513,450 $638,100
GENESEE $331,760 $424,800 $513,450 $638,100
GREENE $331,760 $424,800 $513,450 $638,100
HAMILTON $331,760 $424,800 $513,450 $638,100
HERKIMER $331,760 $424,800 $513,450 $638,100
JEFFERSON $331,760 $424,800 $513,450 $638,100
KINGS $765,600 $980,325 $1,184,925 $1,472,550
LEWIS $331,760 $424,800 $513,450 $638,100
LIVINGSTON $331,760 $424,800 $513,450 $638,100
MADISON $331,760 $424,800 $513,450 $638,100
MONROE $331,760 $424,800 $513,450 $638,100
MONTGOMERY $331,760 $424,800 $513,450 $638,100
NASSAU $765,600 $980,325 $1,184,925 $1,472,550
NEW YORK $765,600 $980,325 $1,184,925 $1,472,550
NIAGARA $331,760 $424,800 $513,450 $638,100
ONEIDA $331,760 $424,800 $513,450 $638,100
ONONDAGA $331,760 $424,800 $513,450 $638,100
ONTARIO $331,760 $424,800 $513,450 $638,100
ORANGE $356,500 $456,350 $551,650 $685,550
ORLEANS $331,760 $424,800 $513,450 $638,100
OSWEGO $331,760 $424,800 $513,450 $638,100
OTSEGO $331,760 $424,800 $513,450 $638,100
PUTNAM $765,600 $980,325 $1,184,925 $1,472,550
QUEENS $765,600 $980,325 $1,184,925 $1,472,550
RENSSELAER $331,760 $424,800 $513,450 $638,100
RICHMOND $765,600 $980,325 $1,184,925 $1,472,550
ROCKLAND $765,600 $980,325 $1,184,925 $1,472,550
SARATOGA $331,760 $424,800 $513,450 $638,100
SCHENECTADY $331,760 $424,800 $513,450 $638,100
SCHOHARIE $331,760 $424,800 $513,450 $638,100
SCHUYLER $331,760 $424,800 $513,450 $638,100
SENECA $331,760 $424,800 $513,450 $638,100
ST. LAWRENCE $331,760 $424,800 $513,450 $638,100

FHA 203k Loans in New York

FHA 203k loans are a great program which will allow you to borrow the money needed to purchase the home plus additional funds needed to rehabilitate or remodel the home. This program is also available in your state and we work with lenders that help with your FHA 203k loan.

If you would like to fully understand how this program works, we suggest reading our article on FHA 203k loans.

FHA Streamline Refinance in New York

The FHA streamline refinance program is available to existing homeowners who would like to refinance for a lower rate while eliminating some of the refinance costs such as an appraisal. You may also get a discount on the mortgage insurance premium which is another advantage.

For more information, please read our article on the FHA streamline refinance.

New York FHA Loan Pre-Approval Process

If you are looking for an FHA loan, there is an optimal process you should follow to get pre-approved.

  1. The first step is to make sure you have the minimum down payment needed to qualify
  2. check your credit and try to cleanup anything that is pulling down your scores
  3. Get a copy of your tax returns for the past two years
  4. Get copies of your pay stubs for the past month
  5. Get copies of your last two months’ bank statements
  6. Speak to an FHA lender about your loan scenario

Speak to a lender early in the process because they can identify opportunities to help with your FHA approval. This should be done months before you start looking for a home. Read more about how to get pre-approved for an FHA loan.

What to Look for in a New York FHA Lender

We take a few things into consideration when looking at which lenders we work with. Some of these also may be, or should be very important to you as you continue shopping for an FHA loan.

A good FHA lender will:

  • Allow for credit scores as low as 500
  • Provide FHA 203k loans
  • Offer competitive rates and fees
  • Have a great processing and underwriting team
  • Work closely with you throughout the loan process
  • Communicate well and will provide you with updates along the way
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Frequently Asked FHA Questions

Can I get an FHA loan with a bankruptcy?
In general, you will need to wait two years before applying for an FHA loan after a bankruptcy. However, there are some exceptions which may allow you to apply sooner. Read our article on the bankruptcy waiting period.

Can I purchase a multi-family home in New York with an FHA Loan?
If you plan to live in a multi-family home as your primary residence, then an FHA insured loan is a great way to purchase the property with a low down payment.

Can you get an FHA loan in New York City?
You can purchase a 1 to 4 unit property in New York City with an FHA loan if you are able to meet the standard loan requirements and the property is also FHA eligible.

How to I apply for an FHA Loan in New York?
The first step to applying for an FHA loan in New York is to get pre-qualified and to determine what you can afford. Then, once you know the price range that fits your needs, you can begin shopping for a lender and a home. We put together this home affordability calculator to help get you started. 

Are all FHA lenders the same?
Not all lenders who offer FHA loans are the same. They all do not offer all of the FHA programs and their rates and fees may also vary. Most importantly, the individuals who help to process and underwrite your loan will have a huge impact on your FHA loan experience.