Birmingham FHA Loan Rates, Closing Costs & Stats

BIRMINGHAM-HOOVER, AL

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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.

    Birmingham's 169 lenders originated 4,133 FHA loans during 2024. The total origination value was $1,024,905,000, with an average FHA loan value of $247,981.

    Birmingham FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Birmingham averaged 0.28% for the week of 2025-06-20, compared to the national average (all FHA variants) of 0% for the same period.

    Birmingham's average FHA mortgage closing costs are $7,411.

    The average rate for the prior week (2025-06-13) was 6.76% and one month ago for the week of 2025-05-16, the average rate was 6.72%.

    The average rate one year ago was 6.58%.

    For refis of the same type during the week of 2025-06-20, the average rate was -0.29%.

    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/closing costs and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Birmingham level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    UNITED WHOLESALE MORTGAGE, LLC 320 6.07% $12,218
    DHI MORTGAGE COMPANY, LTD. 290 4.90% $7,507
    QUICKEN LOANS, LLC 264 6.37% $10,090
    MOVEMENT MORTGAGE, LLC 121 6.50% $9,454
    GUILD MORTGAGE COMPANY 117 6.55% $9,510
    FBC MORTGAGE, LLC 113 5.86% $12,577
    FREEDOM MORTGAGE CORPORATION 102 6.30% $12,899
    FirstBank 98 6.22% $9,874
    Prosperity Home Mortgage, LLC 95 6.30% $8,797
    SouthPoint Bank 89 6.07% $7,077
    CANOPY MORTGAGE, LLC 89 6.28% $14,424
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 79 6.45% $9,249
    First Federal Bank, A FSB 74 6.02% $9,734
    PENNYMAC LOAN SERVICES, LLC 73 6.11% $10,512
    LOANDEPOT.COM, LLC 65 6.39% $10,611
    STOCKTON MORTGAGE CORPORATION 65 6.51% $10,676
    Regions Bank 64 6.24% $8,711
    UNION HOME MORTGAGE CORP. 59 6.51% $10,610
    Hamilton Mortgage Corporation 59 6.38% $8,788
    TJC Mortgage, Inc. 51 6.52% $10,005
    Trustmark National Bank 50 6.34% $8,806
    Renasant Bank 48 6.13% $9,737
    BROKER SOLUTIONS, INC. 46 6.79% $10,979
    Assurance Financial Group, L.L.C. 46 6.67% $9,391
    South State Bank 45 6.18% $9,434
    EVERETT FINANCIAL, INC. 43 6.83% $9,501
    BancorpSouth 41 6.14% $9,009
    The Loan Store, Inc. 40 6.24% $10,128
    Synovus Bank 35 6.20% $8,894
    Flagstar Bank, FSB 35 6.08% $8,533
    Mr. Cooper ( Nationstar Mortgage ) 34 6.58% $11,851
    Cornerstone First Mortgage, Inc 33 6.87% $9,545
    Carrington Mortgage Services, LLC 31 6.16% $10,593
    LEADERONE FINANCIAL CORPORATION 28 6.57% $9,423
    Ameris Bank 27 6.24% $8,298
    AMERISAVE MORTGAGE CORPORATION 24 6.11% $11,205
    ATLANTIC BAY MORTGAGE GROUP, L.L.C. 24 6.57% $10,434
    CARDINAL FINANCIAL 21 6.40% $10,004
    MILEND, INC. 21 6.32% $13,670
    MUTUAL OF OMAHA MORTGAGE, INC. 21 6.55% $14,748
    MORTGAGE INVESTORS GROUP, INC. 20 6.24% $9,439
    Plains Commerce Bank 20 6.48% $8,965
    THE MORTGAGE FIRM, INC. 19 6.11% $9,071
    HUNT MORTGAGE CORPORATION 19 6.23% $8,766
    VANDERBILT MORTGAGE AND FINANCE, INC. 19 6.06% $11,441
    NEWREZ LLC 17 6.36% $10,116
    Bank of England 17 6.38% $9,661
    FIRST COMMUNITY MORTGAGE, INC. 17 6.38% $11,017
    PLAZA HOME MORTGAGE, INC. 15 7.00% $10,567
    Equity Prime Mortgage LLC 15 6.66% $11,582
    VILLAGE CAPITAL MORTGAGE 15 6.65% $8,657
    CROSSCOUNTRY MORTGAGE, LLC 15 6.54% $10,382
    FIRST COLONY MORTGAGE CORPORATION 14 6.29% $8,814
    AmeriHome Mortgage Company, LLC 14 6.44% $7,632
    United Community Bank 14 6.31% $7,968
    GMFS LLC 13 6.17% $7,197
    Princeton Mortgage Corporation 13 6.69% $9,311
    ACOPIA, LLC 13 6.97% $8,077
    TOWNE MORTGAGE COMPANY 13 6.37% $9,412
    LAKEVIEW LOAN SERVICING, LLC 12 6.41% $7,717
    Magnolia Bank 12 6.54% $7,586
    LOANPAL, LLC 12 5.77% $9,126
    AMERICAN FINANCIAL NETWORK, INC. 11 7.15% $11,890
    SOUTHWEST FUNDING, LP 11 6.83% $10,775
    AMERICAN FINANCIAL RESOURCES, INC. 11 6.23% $10,934
    AMERICAN PACIFIC MORTGAGE CORPORATION 10 7.00% $10,678
    MICHIGAN MUTUAL, INC. 10 6.35% $11,442
    PLANET HOME LENDING, LLC 9 6.30% $8,098
    MORIA DEVELOPMENT, INC. 9 6.51% $9,279
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 9 6.92% $6,520
    AMERICAN FINANCING CORPORATION 9 5.93% $11,055
    CMG MORTGAGE, INC. 8 6.64% $10,099
    NFM, INC. 8 7.42% $8,493
    GUARANTEED RATE, INC. 8 6.20% $12,078
    AVADIAN 8 6.06% $12,312
    Presidential Bank, FSB 8 6.75% $7,922
    MID AMERICA MORTGAGE, INC. 8 6.78% $5,500
    Consumer First Mortgage, Inc. 8 6.41% $9,196
    HOMEBRIDGE FINANCIAL SERVICES, INC. 8 6.53% $8,198
    First Horizon Bank 7 6.27% $9,532
    Liberty Mortgage Corporation 7 6.46% $7,771
    Ixonia Bank 7 7.32% $8,445
    ISERVE RESIDENTIAL LENDING, LLC 7 6.71% $18,521
    SUCCESS MORTGAGE PARTNERS, INC. 7 6.41% $12,403
    Home Mortgage Alliance Corp 7 6.46% $8,960
    ENDEAVOR CAPITAL, LLC. 6 6.35% $9,195
    Mortgage Research Center, LLC 6 6.64% $5,617
    Pinnacle Bank 6 6.08% $8,284
    PREMIER MORTGAGE RESOURCES, L.L.C. 6 6.75% $8,457
    Wells Fargo Bank 6 6.65% $7,168
    GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 5 6.85% $8,662
    Paramount Residential Mortgage Group, Inc. 5 6.63% $10,400
    SUN WEST MORTGAGE COMPANY, INC. 5 7.10% $12,810
    SOUTHPOINT FINANCIAL SERVICES, INC. 5 6.68% $6,022
    HOMEOWNERS FINANCIAL GROUP USA, LLC 5 6.95% $10,854
    HOMESIDE FINANCIAL, LLC 5 6.45% $11,147
    PNC Bank 5 6.50% $7,336
    PRIMELENDING, A PLAINSCAPITAL COMPANY 4 6.94% $11,074
    EMM LOANS LLC 4 6.15% $15,299
    INSPIRE HOME LOANS INC. 4 5.59% $8,393
    Victorian Finance, LLC 4 6.31% $9,552
    Nations Lending Corporation 4 6.59% $6,528
    Northpointe Bank 4 6.28% $8,174
    T2 FINANCIAL LLC 3 6.92% $11,637
    Merchants Bank of Indiana 3 6.33% $11,756
    ServisFirst Bank 3 5.96% $9,606
    Truist 3 6.09% $10,292
    EVANSVILLE TEACHERS 3 6.08% $8,435
    ENVOY MORTGAGE, LTD 3 6.50% $11,727
    ZILLOW HOME LOANS, LLC 3 6.42% $9,797
    Residential Acceptance Corporation 3 7.67% $4,406
    ROYAL UNITED MORTGAGE LLC 3 6.42% $13,770
    The Federal Savings Bank 3 6.50% $12,914
    SENTE MORTGAGE, INC. 2 6.63% $14,756
    RUOFF MORTGAGE COMPANY, INC. 2 6.38% $5,907
    CITY FIRST MORTGAGE SERVICES, L.L.C. 2 6.25% $18,049
    OCMBC, INC. 2 7.06% $18,770
    CIS Financial Services, Inc. 2 6.38% $7,142
    Lakeview Community Capital, LLC 2 6.25% $8,527
    V.I.P. MORTGAGE, INC. 2 6.12% $13,594
    M&T Bank 2 6.19% $11,041
    BETTER MORTGAGE CORPORATION 2 5.94% $8,252
    PENTAGON FEDERAL CREDIT UNION 2 6.06% $7,818
    TOP FLITE FINANCIAL, INC. 2 7.19% $21,587
    Barrington Bank & Trust Company, N.A. 2 6.50% $8,172
    PHH Mortgage Corporation 2 7.24% $6,698
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 2 6.44% $17,538
    First Federal Bank 2 6.50% $8,000
    ALLIED MORTGAGE GROUP, INC. 2 6.50% $6,625
    Loan Simple, Inc. 2 6.75% $17,282
    LIBERTY HOME MORTGAGE CORPORATION 2 6.25% $18,580
    NATIONS DIRECT MORTGAGE, LLC 2 6.75% $9,908
    PREMIER LENDING, INC. 2 6.69% $11,636
    NBKC BANK 2 6.06% $8,756
    MORTGAGE SOLUTIONS OF COLORADO, LLC 2 6.50% $9,739
    RELIANCE FIRST CAPITAL, LLC 2 6.69% $10,682
    JMAC LENDING, INC. 2 5.75% $16,584
    Legacy Home Loans, LLC 1 6.25% $5,289
    MLB RESIDENTIAL LENDING, LLC 1 6.88% $13,251
    Keystone Funding, Inc. 1 7.25% $10,157
    JPMorgan Chase Bank 1 6.99% $9,208
    INTERLINC MORTGAGE SERVICES, LLC 1 6.75% $5,776
    MSA MORTGAGE, LLC 1 6.00% $8,233
    NEW DAY FINANCIAL, LLC 1 7.50% $8,540
    NEXERA HOLDING LLC 1 5.75% $5,259
    Old National Bank 1 5.63% $11,660
    PACIFIC RESIDENTIAL MORTGAGE, LLC 1 6.13% $11,598
    GUARANTEED RATE AFFINITY, LLC 1 6.25% $13,506
    First Citizens National Bank 1 6.38% $9,357
    POLARIS HOME FUNDING CORP. 1 5.75% $10,300
    Wilmington Savings Fund Society, FSB 1 6.25% $9,089
    FIDELITY BANK 1 6.75% $6,888
    DIRECT MORTGAGE LOANS, LLC 1 7.13% $11,238
    DIRECT LENDERS, LLC 1 6.75% $4,129
    RESIDENTIAL WHOLESALE MORTGAGE, INC. 1 6.38% $8,162
    SOUTHEAST MORTGAGE OF GEORGIA, INC. 1 7.13% $9,100
    City National Bank of Florida 1 5.25% $7,989
    Citizens Bank 1 7.13% $5,287
    CHURCHILL MORTGAGE CORPORATION 1 5.75% $8,159
    SUMMIT FUNDING, INC. 1 6.25% $10,750
    Century Mortgage Company DBA Century Lending Company 1 6.75% $10,927
    CALCON MUTUAL MORTGAGE LLC 1 6.99% $8,694
    BAY EQUITY LLC 1 6.13% $7,765
    AXIA FINANCIAL, LLC 1 6.88% $14,393
    Atlantic Coast Mortgage, LLC 1 5.25% $15,584
    AMERITRUST MORTGAGE CORPORATION 1 8.00% $11,354
    Valley National Bank 1 6.63% $6,403
    American Mortgage & Equity Consultants, Inc. 1 6.75% $18,755
    LAND HOME FINANCIAL SERVICES, INC. 1 7.50% $8,288

    The top Birmingham FHA lender as defined by loan originations is UNITED WHOLESALE MORTGAGE, LLC, with 320 FHA loans originated. Their average total fees are $12,218, which is $4,711 higher than the next largest lender, DHI MORTGAGE COMPANY, LTD..

    The lowest fee Birmingham FHA lenders (with over 10 loans originated) are SouthPoint Bank ($7,077), GMFS LLC ($7,197), DHI MORTGAGE COMPANY, LTD. ($7,507), Magnolia Bank ($7,586) and AmeriHome Mortgage Company, LLC ($7,632).

    The lowest rate Birmingham FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (4.90%), LOANPAL, LLC (5.77%), FBC MORTGAGE, LLC (5.86%), First Federal Bank, A FSB (6.02%) and VANDERBILT MORTGAGE AND FINANCE, INC. (6.06%).

    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
    BIRMINGHAM-HOOVER, AL BIBB 2023 $472,030 $604,400 $730,525 $907,900
    BIRMINGHAM-HOOVER, AL BLOUNT 2023 $472,030 $604,400 $730,525 $907,900
    BIRMINGHAM-HOOVER, AL CHILTON 2023 $472,030 $604,400 $730,525 $907,900
    BIRMINGHAM-HOOVER, AL JEFFERSON 2023 $472,030 $604,400 $730,525 $907,900
    BIRMINGHAM-HOOVER, AL ST. CLAIR 2023 $472,030 $604,400 $730,525 $907,900
    BIRMINGHAM-HOOVER, AL SHELBY 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).