Birmingham FHA Loans

BIRMINGHAM-HOOVER, AL

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.

Birmingham's 164 lenders originated 6,069 FHA loans during 2021. The total origination value was $1,192,735,000, with an average FHA loan value of $196,529.

Birmingham FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Birmingham averaged 5.13% for the week of 2022-05-13, compared to the national average (all FHA variants) of 5.361% for the same period.

The average rate for the prior week (2022-05-06) was 5.56% and one month ago for the week of 2022-04-08, the average rate was 4.93%.

The average rate one year ago was 3.13%.

For refis of the same type during the week of 2022-05-13, the average rate was 4.99%.

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

Birmingham FHA Loan Lenders by Rates & Fees

The below table looks at the average fees and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Birmingham level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
QUICKEN LOANS, LLC 578 2.75% $5,692
Hometown Lenders, Inc. 231 3.40% $8,207
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 199 3.19% $6,905
FREEDOM MORTGAGE CORPORATION 188 2.91% $4,328
UNITED WHOLESALE MORTGAGE, LLC 175 2.74% $6,763
LAKEVIEW LOAN SERVICING, LLC 169 2.99% $4,408
LOANDEPOT.COM, LLC 166 3.39% $7,737
GUILD MORTGAGE COMPANY 148 3.28% $6,892
Renasant Bank 138 3.08% $6,470
Mr. Cooper ( Nationstar Mortgage ) 137 3.31% $3,890
MOVEMENT MORTGAGE, LLC 136 3.25% $6,048
FirstBank 134 3.10% $7,105
PENNYMAC LOAN SERVICES, LLC 124 3.07% $4,270
LEADERONE FINANCIAL CORPORATION 116 3.39% $7,088
DHI MORTGAGE COMPANY, LTD. 113 2.77% $7,363
CALIBER HOME LOANS, INC. 110 2.92% $6,289
SouthPoint Bank 109 3.00% $4,891
Northpointe Bank 107 3.13% $7,131
HOME POINT FINANCIAL CORPORATION 104 2.83% $7,391
Regions Bank 104 2.87% $6,571
Prosperity Home Mortgage, LLC 92 3.18% $6,333
INTERLINC MORTGAGE SERVICES, LLC 91 3.41% $4,991
HOMEBRIDGE FINANCIAL SERVICES, INC. 88 2.96% $6,609
Trustmark National Bank 84 2.81% $6,864
First Federal Bank, A FSB 77 2.83% $5,550
TJC Mortgage, Inc. 76 3.03% $6,764
SOUTHWEST FUNDING, LP 70 3.59% $9,061
VILLAGE CAPITAL & INVESTMENT LLC 65 2.94% $2,581
BancorpSouth Bank 59 2.99% $5,996
Carrington Mortgage Services, LLC 52 3.43% $6,901
Assurance Financial Group, L.L.C. 52 3.24% $7,384
FBC MORTGAGE, LLC 46 3.05% $7,890
Ixonia Bank 44 3.36% $7,330
Ameris Bank 43 2.83% $5,826
HUNT MORTGAGE CORPORATION 38 2.99% $6,591
HOMEOWNERS FINANCIAL GROUP USA, LLC 36 3.36% $7,146
AmeriHome Mortgage Company, LLC 35 2.93% $4,273
Bank of England 34 3.32% $7,332
NEWREZ LLC 34 3.06% $4,701
VANDERBILT MORTGAGE AND FINANCE, INC. 30 3.18% $7,273
Hamilton Mortgage Corporation 29 2.66% $6,343
Flagstar Bank, FSB 29 2.69% $5,563
BROKER SOLUTIONS, INC. 28 3.09% $7,805
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 28 3.07% $7,209
AMERIFIRST FINANCIAL CORPORATION 28 4.22% $7,447
CROSSCOUNTRY MORTGAGE, LLC 28 3.43% $8,088
FIRST COMMUNITY MORTGAGE, INC. 27 3.08% $6,029
Synovus Bank 26 3.13% $7,105
Citizens Bank 26 2.83% $8,516
ISERVE RESIDENTIAL LENDING, LLC 25 3.20% $10,708
AMERISAVE MORTGAGE CORPORATION 24 2.96% $7,445
First Guaranty Mortgage Corporation 22 2.95% $5,129
AMERICAN FINANCIAL NETWORK, INC. 20 3.03% $9,238
GMFS LLC 20 3.26% $5,091
CMG MORTGAGE, INC. 19 3.07% $7,789
ARK-LA-TEX FINANCIAL SERVICES, LLC. 19 3.64% $6,401
PLANET HOME LENDING, LLC 18 2.78% $4,539
Plains Commerce Bank 16 2.94% $6,806
EVANSVILLE TEACHERS 15 2.91% $6,750
Paramount Residential Mortgage Group, Inc. 15 2.83% $7,433
ServisFirst Bank 15 2.89% $7,502
Liberty Mortgage Corporation 14 2.88% $5,983
DRAPER AND KRAMER MORTGAGE CORP. 14 3.23% $7,027
RELIANCE FIRST CAPITAL, LLC 14 3.12% $7,463
Nations Lending Corporation 13 3.38% $8,868
First Horizon Bank 13 3.05% $6,856
SUN WEST MORTGAGE COMPANY, INC. 12 3.02% $6,117
BBVA USA 12 2.86% $4,023
GUARANTY HOME MORTGAGE CORPORATION 10 2.74% $6,700
HOMETRUST MORTGAGE COMPANY 10 2.90% $5,999
STOCKTON MORTGAGE CORPORATION 10 2.90% $6,885
FINANCE OF AMERICA MORTGAGE LLC 10 3.48% $5,699
HOMESTAR FINANCIAL CORPORATION 9 3.15% $7,284
A Mortgage Boutique, LLC 8 2.55% $5,165
PLAZA HOME MORTGAGE, INC. 8 3.17% $9,446
AVADIAN 8 2.73% $6,906
MICHIGAN MUTUAL, INC. 8 2.92% $6,048
CB&S Bank, Inc. 7 2.57% $6,223
SUCCESS MORTGAGE PARTNERS, INC. 7 3.14% $7,877
AMERICAN PACIFIC MORTGAGE CORPORATION 7 3.45% $8,299
KELLER MORTGAGE, LLC 6 2.88% $5,843
Mortgage Research Center, LLC 6 3.10% $5,611
CIS Financial Services, Inc. 6 3.15% $8,009
THE MORTGAGE FIRM, INC. 6 3.26% $7,328
PRIMARY RESIDENTIAL MORTGAGE, INC. 5 3.63% $8,331
InterContinental Capital Group, Inc 5 3.05% $6,270
EVERETT FINANCIAL, INC. 5 3.80% $4,886
MUTUAL OF OMAHA MORTGAGE, INC. 5 3.53% $7,585
Gateway First Bank 5 3.45% $6,176
South State Bank 5 2.68% $5,845
The Federal Savings Bank 5 2.68% $8,041
Amerifirst Financial, Inc. 4 3.47% $5,491
RUOFF MORTGAGE COMPANY, INC. 4 3.31% $4,346
BAYSHORE MORTGAGE FUNDING, LLC 4 3.38% $5,433
Truist Bank 4 2.83% $7,150
Consumer First Mortgage, Inc. 4 2.56% $9,676
Progress Bank and Trust 4 2.69% $6,807
NATIONS DIRECT MORTGAGE, LLC 4 3.31% $6,017
PRIMELENDING, A PLAINSCAPITAL COMPANY 4 3.44% $8,000
PHH Mortgage Corporation 4 3.22% $3,216
Goldwater Bank, N.A. 4 3.22% $7,323
Equity Prime Mortgage LLC 4 2.78% $5,436
Manufacturers and Traders Trust Company 3 2.96% $6,007
GENEVA FINANCIAL, LLC 3 3.63% $6,244
First Option Mortgage, LLC 3 3.46% $7,634
HOMESIDE FINANCIAL, LLC 3 3.08% $7,557
First Federal Bank 3 2.83% $9,686
SOVEREIGN LENDING GROUP INCORPORATED 3 3.04% $8,579
CHURCHILL MORTGAGE CORPORATION 3 3.08% $7,275
LIBERTY HOME MORTGAGE CORPORATION 3 3.13% $8,671
AMERICAN FINANCIAL RESOURCES, INC. 3 3.46% $4,777
TOWNE MORTGAGE COMPANY 3 3.63% $6,866
Low VA Rates, LLC 3 2.71% $4,201
OCEANSIDE MORTGAGE COMPANY 3 2.63% $2,032
MID AMERICA MORTGAGE, INC. 3 2.50% $1,543
ALLIED MORTGAGE GROUP, INC. 3 2.92% $5,983
AmRes Corporation 3 2.96% $6,799
SOUTHPOINT FINANCIAL SERVICES, INC. 3 2.75% $7,795
ZILLOW HOME LOANS, LLC 2 3.13% $6,442
AMERICAN FINANCING CORPORATION 2 2.88% $8,918
AMERICAN MORTGAGE SERVICE COMPANY 2 2.94% $6,241
Bank of America 2 3.06% $10,393
Barrington Bank & Trust Company, N.A. 2 3.20% $6,262
Blue Ridge Bank 2 2.88% $8,226
Cadence Bank, N.A. 2 2.81% $8,896
DAS Acquisition Company, LLC 2 2.75% $8,510
Fifth Third Bank 2 3.19% $5,011
JPMorgan Chase Bank 2 2.87% $1,981
Magnolia Bank 2 3.38% $8,196
MORTGAGE INVESTORS GROUP, INC. 2 2.88% $6,149
STEARNS LENDING, LLC 2 2.94% $6,606
MORTGAGE SOLUTIONS OF COLORADO, LLC 1 3.75% $14,388
MLD MORTGAGE INC. 1 2.50% $8,130
ROYAL UNITED MORTGAGE LLC 1 3.88% $6,190
MIDLAND MORTGAGE CORPORATION 1 4.00% $8,749
LENDUS, LLC 1 3.25% $6,555
SIRVA MORTGAGE, INC. 1 3.25% $7,107
SmartBank 1 2.63% $5,856
Hometown Equity Mortgage, LLC 1 2.88% $13,535
GUARANTEED RATE, INC. 1 3.75% $2,968
GSF Mortgage Corporation 1 3.50% $6,918
Evolve Bank & Trust 1 3.25% $4,412
ENVOY MORTGAGE, LTD 1 3.63% $7,537
ACADEMY MORTGAGE CORPORATION 1 2.75% $9,379
EMM LOANS LLC 1 2.25% $12,582
EMBRACE HOME LOANS, INC. 1 2.99% $7,908
SUMMIT FUNDING, INC. 1 3.75% $9,627
CRESCENT MORTGAGE COMPANY 1 3.00% $10,262
CONTOUR MORTGAGE CORPORATION 1 2.88% $5,171
T2 FINANCIAL LLC 1 4.13% $7,215
Congressional Bank 1 2.50% $6,762
CLEARPATH LENDING 1 3.75% $3,309
CERTAINTY HOME LOANS, LLC 1 3.50% $6,745
TOP FLITE FINANCIAL, INC. 1 3.13% $5,987
BETTER MORTGAGE CORPORATION 1 2.88% $7,381
BARTLETT MORTGAGE, INC. 1 2.13% $6,477
Atlantic Union Bank 1 3.25% $10,141
UNITED SECURITY FINANCIAL CORP 1 2.88% $6,233
ANGEL OAK HOME LOANS LLC 1 3.38% $8,824
Valley National Bank 1 2.50% $6,511
Alcova Mortgage LLC 1 3.50% $1,732
ACOPIA, LLC 1 2.88% $6,680
Wolfe Financial, Inc 1 3.00% $8,837
PREMIA MORTGAGE, LLC 1 2.63% $4,113

The top Birmingham FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 578 FHA loans originated. Their average total fees are $5,692, which is $2,514 lower than the next largest lender, Hometown Lenders, Inc..

The lowest fee Birmingham FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL & INVESTMENT LLC ($2,581), Mr. Cooper ( Nationstar Mortgage ) ($3,890), BBVA USA ($4,023), PENNYMAC LOAN SERVICES, LLC ($4,270) and AmeriHome Mortgage Company, LLC ($4,273).

The lowest rate Birmingham FHA lenders (with over 10 loans originated) are Hamilton Mortgage Corporation (2.66%), Flagstar Bank, FSB (2.69%), UNITED WHOLESALE MORTGAGE, LLC (2.74%), GUARANTY HOME MORTGAGE CORPORATION (2.74%) and QUICKEN LOANS, LLC (2.75%).

Birmingham FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
BIRMINGHAM-HOOVER, AL BIBB 2022 $420,680 $538,650 $651,050 $809,150
BIRMINGHAM-HOOVER, AL BLOUNT 2022 $420,680 $538,650 $651,050 $809,150
BIRMINGHAM-HOOVER, AL CHILTON 2022 $420,680 $538,650 $651,050 $809,150
BIRMINGHAM-HOOVER, AL JEFFERSON 2022 $420,680 $538,650 $651,050 $809,150
BIRMINGHAM-HOOVER, AL ST. CLAIR 2022 $420,680 $538,650 $651,050 $809,150
BIRMINGHAM-HOOVER, AL SHELBY 2022 $420,680 $538,650 $651,050 $809,150

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Birmingham (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Price (YoY Change) Average Listing Price (YoY) MSA/US Median Price Ratio Active Listings
2018-01-01 $199,900 (8.1%) $267,654 (7.9%) 0.74 4,691
2018-02-01 $204,200 (7.5%) $270,441 (5.6%) 0.74 4,590
2018-03-01 $219,000 (10.5%) $284,574 (7.0%) 0.76 4,498
2018-04-01 $227,680 (8.9%) $295,985 (9.1%) 0.76 4,566
2018-05-01 $232,250 (9.0%) $305,087 (9.4%) 0.77 4,701
2018-06-01 $232,900 (8.4%) $306,621 (9.4%) 0.78 4,766
2018-07-01 $234,430 (10.1%) $304,145 (10.0%) 0.78 4,910
2018-08-01 $232,000 (10.5%) $302,002 (10.0%) 0.78 4,978
2018-09-01 $226,500 (7.9%) $301,441 (11.4%) 0.76 4,926
2018-10-01 $221,450 (6.0%) $294,302 (7.7%) 0.74 4,878
2018-11-01 $224,900 (10.3%) $298,630 (11.4%) 0.75 4,690
2018-12-01 $224,870 (12.5%) $297,374 (11.9%) 0.77 4,382
2019-01-01 $225,000 (12.6%) $297,118 (11.0%) 0.78 4,075
2019-02-01 $233,265 (14.2%) $311,219 (15.1%) 0.78 4,004
2019-03-01 $243,957 (11.4%) $320,502 (12.6%) 0.80 3,981
2019-04-01 $249,900 (9.8%) $331,037 (11.8%) 0.79 3,981
2019-05-01 $256,900 (10.6%) $333,729 (9.4%) 0.79 4,006
2019-06-01 $257,900 (10.7%) $334,204 (9.0%) 0.79 4,184
2019-07-01 $259,900 (10.9%) $332,223 (9.2%) 0.81 4,323
2019-08-01 $255,614 (10.2%) $327,316 (8.4%) 0.80 4,254
2019-09-01 $249,998 (10.4%) $322,825 (7.1%) 0.79 4,177
2019-10-01 $258,850 (16.9%) $327,667 (11.3%) 0.83 4,203
2019-11-01 $257,900 (14.7%) $326,499 (9.3%) 0.83 3,969
2019-12-01 $249,900 (11.1%) $321,598 (8.2%) 0.83 3,688
2020-01-01 $249,900 (11.1%) $324,216 (9.1%) 0.83 3,375
2020-02-01 $256,360 (9.9%) $331,977 (6.7%) 0.83 3,316
2020-03-01 $264,100 (8.3%) $342,668 (6.9%) 0.83 3,261
2020-04-01 $263,000 (5.2%) $340,475 (2.9%) 0.82 3,330
2020-05-01 $273,765 (6.6%) $356,246 (6.8%) 0.83 3,251
2020-06-01 $279,640 (8.4%) $366,719 (9.7%) 0.82 3,051
2020-07-01 $279,450 (7.5%) $367,836 (10.7%) 0.80 2,899
2020-08-01 $275,000 (7.6%) $366,166 (11.9%) 0.79 2,745
2020-09-01 $273,450 (9.4%) $364,634 (13.0%) 0.78 2,646
2020-10-01 $265,000 (2.4%) $357,308 (9.1%) 0.76 2,689
2020-11-01 $259,900 (0.8%) $354,933 (8.7%) 0.74 2,578
2020-12-01 $261,250 (4.5%) $354,983 (10.4%) 0.77 2,388
2021-01-01 $262,800 (5.2%) $350,804 (8.2%) 0.77 2,172
2021-02-01 $261,250 (1.9%) $356,546 (7.4%) 0.75 1,799
2021-03-01 $265,200 (0.4%) $365,141 (6.6%) 0.74 1,734
2021-04-01 $276,950 (5.3%) $383,280 (12.6%) 0.74 1,615
2021-05-01 $279,000 (1.9%) $384,200 (7.9%) 0.73 1,504
2021-06-01 $272,500 (-2.6%) $373,131 (1.8%) 0.71 1,602
2021-07-01 $269,868 (-3.4%) $365,982 (-0.5%) 0.70 1,893
2021-08-01 $272,500 (-0.9%) $366,698 (0.2%) 0.72 2,019
2021-09-01 $271,075 (-0.9%) $365,649 (0.3%) 0.71 1,966
2021-10-01 $280,000 (5.7%) $372,938 (4.4%) 0.74 1,901
2021-11-01 $275,000 (5.8%) $373,225 (5.2%) 0.72 1,764
2021-12-01 $272,450 (4.3%) $368,433 (3.8%) 0.73 1,641
2022-01-01 $265,000 (0.8%) $360,533 (2.8%) 0.71 1,494
2022-02-01 $258,450 (-1.1%) $364,502 (2.2%) 0.66 1,484
2022-03-01 $259,450 (-2.2%) $369,580 (1.2%) 0.64 1,469
2022-04-01 $269,900 (-2.6%) $386,518 (0.8%) 0.64 1,555
Birmingham's median listing price for 2022-04-01 was $269,900, a difference of $-7,050 (-2.6%) versus the prior year and $10,450 versus the prior month.

Birmingham's median listing price comes in at 64% of the national average.

Birmingham's average listing price for 2022-04-01 was $386,518, a difference of $3,238 (0.8%) versus the prior year and $16,938 versus the prior month.

For the 2022-04-01 period, Birmingham had 1,555 MLS listings, a difference of 86 listings (6%) versus the prior month and -60 listings (-4%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Birmingham (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 106 days 1,808 sqft
2018-02-01 99 days 1,788 sqft
2018-03-01 73 days 1,856 sqft
2018-04-01 68 days 1,879 sqft
2018-05-01 62 days 1,904 sqft
2018-06-01 61 days 1,910 sqft
2018-07-01 66 days 1,927 sqft
2018-08-01 66 days 1,930 sqft
2018-09-01 70 days 1,890 sqft
2018-10-01 76 days 1,856 sqft
2018-11-01 80 days 1,859 sqft
2018-12-01 88 days 1,872 sqft
2019-01-01 95 days 1,880 sqft
2019-02-01 85 days 1,896 sqft
2019-03-01 64 days 1,935 sqft
2019-04-01 61 days 1,967 sqft
2019-05-01 56 days 1,983 sqft
2019-06-01 58 days 1,973 sqft
2019-07-01 59 days 1,961 sqft
2019-08-01 60 days 1,953 sqft
2019-09-01 64 days 1,927 sqft
2019-10-01 67 days 1,951 sqft
2019-11-01 72 days 1,956 sqft
2019-12-01 82 days 1,947 sqft
2020-01-01 86 days 1,995 sqft
2020-02-01 71 days 2,121 sqft
2020-03-01 57 days 2,155 sqft
2020-04-01 60 days 2,143 sqft
2020-05-01 64 days 2,148 sqft
2020-06-01 59 days 2,160 sqft
2020-07-01 56 days 2,197 sqft
2020-08-01 51 days 2,156 sqft
2020-09-01 50 days 2,142 sqft
2020-10-01 49 days 2,086 sqft
2020-11-01 54 days 2,059 sqft
2020-12-01 63 days 2,023 sqft
2021-01-01 65 days 2,002 sqft
2021-02-01 57 days 1,982 sqft
2021-03-01 46 days 1,975 sqft
2021-04-01 41 days 2,002 sqft
2021-05-01 40 days 2,003 sqft
2021-06-01 37 days 1,952 sqft
2021-07-01 35 days 1,922 sqft
2021-08-01 37 days 1,930 sqft
2021-09-01 45 days 1,913 sqft
2021-10-01 47 days 1,946 sqft
2021-11-01 50 days 1,916 sqft
2021-12-01 53 days 1,895 sqft
2022-01-01 57 days 1,818 sqft
2022-02-01 38 days 1,812 sqft
2022-03-01 37 days 1,800 sqft
2022-04-01 35 days 1,833 sqft
Birmingham's median listing age (time on market) for 2022-04-01 was 35 days. This is -14% shorter than the same period one year ago.

Birmingham's median square footage for active listings during the 2022-04-01 period was 1,833 sqft. One year prior, the average listing was 2,002 sqft.

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).