Staten Island FHA Loans: From A to Z

FHA loans are a popular option among first time buyers. Here’s everything you need to know about Staten Island FHA loans.

If you are a first-time buyer, or your credit score is less-than-perfect, an FHA loan might be exactly what you need to kickstart your home buying journey and pave your way towards financial stability.

FHA loans are also a great option for purchasing a home in Staten Island, where the real estate market can get quite competitive. 

Backed up by the Federal Housing Administration, they make homeownership more accessible, giving you the opportunity to purchase a property without being priced out of the market by buyers that are better positioned financially.

In this article, we will walk you through everything you need to know about Staten Island FHA loans – so, let’s get right into it:

What Are Staten Island FHA Loans?

FHA loans are mortgages that are insured by the Federal Housing Administration, which means that lenders aren’t assuming all the risk when it comes to defaulting. As a result, lending institutions are able to offer borrowers more lenient criteria and lower credit score requirements. 

If you are a low-income or a first-time buyer in New York City’s southernmost borough, a Staten Island FHA loan is the perfect option to purchase a property with fewer barriers. Here are some of the key characteristics of FHA loans:

• Lower Down Payments – If you are having difficulties saving up for a large down payment, the good news is that down payments for FHA loans are lower than conventional loans, allowing you to save up faster.
• Lower Credit Score – While other mortgages require higher credit scores – for example, +620 for conventional loans and +700 for jumbo loans, a Staten Island FHA loan has more lenient requirements – between 500 and 580. 
• Mortgage Insurance – However, it is important to keep in mind that you will need to pay mortgage insurance, which includes an upfront premium and an ongoing premium, added to the monthly mortgage payment. This protects the lender in case you default on the loan.
• Loan Limits – Another key characteristic of FHA loans is how much you can borrow, which varies depending on the cost of living in different areas. In Staten Island, FHA loan limits for single-family homes in 2025 range from $524,225 to $1,209,750.
• Property Standards – In contrast to other types of home loans, if you are purchasing a home with an FHA loan, it will have to meet certain safety, security, and structural integrity standards. It also must be appraised by an FHA-approved appraiser.

What Are The Requirements For FHA Loans?

So, what are the requirements that you will need to meet if you are looking to apply for Staten Island FHA loans? Let’s take a quick look:

• Credit Score of +500 – As we just mentioned, you will need a moderate credit score to qualify for an FHA loan, which means at least 500.
• Creditworthiness – Despite the lenient requirements, you will still need to prove to the lender that you are creditworthy. This means ensuring that you don’t have foreclosures, liens or bankruptcies that may hinder your application process.
• DTI below 43% – Your monthly debt payments must be 43% of or less of your monthly income. However, a Debt-to-Income ratio of 36% or less may get you more favorable terms and rates.
• Proof of Income – In addition, you will have to provide proof of income documentation, such as pay stubs, tax returns, and W-2 or 1099 forms. Lenders need to ensure that you have a steady source of income for your monthly payments.
• FHA Appraisal – As we mentioned earlier, one of the main requirements for Staten Island FHA loans is that the property you are looking to purchase must be evaluated by an FHA-approved appraiser.
• Mortgage Insurance – To take out an FHA loan, you will have to pay two types of mortgage insurance. The first one (UFMIP)  is paid as an upfront fee at the time of closing – 1.75% of the loan amount. The second one (MIP) is paid as annual insurance payments, and it ranges from 0.15% to 0.75%.
• Move In Within 60 Days – In addition, Staten Island FHA loans require that you have to start living in the property within 60 days of signing, and you must agree to live there for at least 1 year.
• Employment History – Last but not least, you will need to provide proof of steady employment for the past 2 years, although some exceptions can be made.

What Are The FHA Loan Limits?

As we mentioned at the beginning of the article, there are certain FHA loan limits that you need to consider before looking for a home. 

This is the maximum amount that you can receive under an FHA loan, and it varies depending on an area’s cost of living and housing prices. These limits exist to ensure that the Federal Housing Administration can help borrowers buy moderately priced homes. 

You can check the FHA loan limits for New York in 2025 here.

FHA loan limits are reviewed on an annual basis, as the updates reflect changes in the US housing market. They are updated by the Department of Housing and Urban Development (HUD), with the new limits becoming effective at the beginning of each year. 

Can I Use an FHA Loan For Home Renovations in Staten Island?

If you are looking to purchase a home that needs major repairs or renovations, you can use Staten Island FHA Loans – however, you should do this through the FHA 203(k) Rehabilitation Loan program.

As opposed to regular FHA loans, this government-backed program allows you to finance both your home purchase and the cost of renovations into a single mortgage. 

So, if you are considering buying a cheap property and converting it into the home of your dreams, you can do this. You can make any improvements that add value and extend the life of the property, such as structural alterations, additions, or major landscaping.

In addition to the Staten Island FHA loan limits and requirements that you must adhere to, keep in mind that there are some requirements for the renovation side of the loan. There must be a minimum of $5,00 worth of repairs, and work must be completed 6 months after closing.

If you are planning to make an extensive renovation, you will have to use an FHA-approved 203(k) consultant. The contractor must be licensed and insured, and you must present a clear outline of the scope of work and costs.

What Are The Differences Between FHA Loans and Conventional Loans?

What are the differences between conventional home loans and Staten Island FHA loans? 

While we already detailed some of the differences previously, we have summed them up in a table to get a more clear perspective:

It’s also important to keep in mind that loan limits for FHA loans and conventional loans vary, although limits tend to be higher for conventional loans. 

If the home you are looking to purchase surpasses the limits of FHA loans and conventional loans, you will need a jumbo loan.

Getting a Staten Island FHA Loan WIth Jet Direct Mortgage

If you are looking to get a Staten Island FHA loan to purchase the home of your dreams, look no further than Jet Direct Mortgage, your trusted partner in the local real estate market. 

Our team of highly experienced professionals will ensure a smooth, transparent and efficient refinancing process from start to finish. Apply here.

FAQ

How do I apply for an FHA loan in Staten Island?

To apply for an FHA loan in Staten Island, start by finding an FHA-approved lender, such as Jet Direct Mortgage. Gather necessary documents like your ID, pay stubs, tax returns, and bank statements. 

Then, complete a loan application with your lender, who will guide you through the process, including credit checks and property appraisal. Ensure the property meets FHA standards.

Can I use an FHA loan to buy and renovate a home in Staten Island?

Yes, you can use an FHA 203(k) Rehabilitation Loan to buy and renovate a home in Staten Island. This loan combines the purchase price with renovation costs into one mortgage, allowing you to finance both through an FHA-approved lender. 

Ensure the renovation project and the property meet FHA standards.

What are the property eligibility requirements for an FHA loan in Staten Island?

For an FHA loan in Staten Island, the property must be your primary residence and meet specific health, safety, and structural integrity standards. An FHA-approved appraiser must assess the property to ensure it adheres to these requirements. 

The property must also be a single-family home, a HUD-approved condominium, or a multifamily property up to four units.

How does FHA mortgage insurance work in Staten Island?

In Staten Island, FHA mortgage insurance requires an upfront premium of 1.75% of the loan amount, typically financed into the mortgage, and an annual premium between 0.45% to 1.05% based on loan amount, term, and LTV ratio, paid monthly. 

This insurance protects lenders against losses if the borrower defaults.

How long does the FHA loan approval process take in Staten Island?

The FHA loan approval process in Staten Island typically takes between 30 to 60 days. This timeframe can vary based on the completeness of your application, the promptness of obtaining necessary documents, and the time it takes for an appraisal and underwriting. 

Delays may occur if there are issues with the property or documentation.

Peter Pescatore

Experienced Chief Operating Officer with a 26 + year demonstrated history of working in the banking industry. Skilled in all aspects of the residential mortgage market . Strong business development professional with a Bachelor of Science (BS) focused in Business Administration and Management, from St. Joseph College. A direct endorsement underwriter and a licensed Mortgage Loan Originator.

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