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 158 lenders originated 3,755 FHA loans during 2022. The total origination value was $819,075,000, with an average FHA loan value of $218,129.

    Birmingham FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Birmingham averaged 6.63% for the week of 2023-12-08, compared to the national average (all FHA variants) of 6.819% for the same period.

    Birmingham's average FHA mortgage closing costs are $6,553.

    The average rate for the prior week (2023-12-01) was 6.43% and one month ago for the week of 2023-11-03, the average rate was 6.77%.

    The average rate one year ago was 6.24%.

    For refis of the same type during the week of 2023-12-08, the average rate was 5.43%.

    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 2022 Avg. 30yFix Rate 2022 Avg. Closing Costs
    QUICKEN LOANS, LLC 373 4.51% $8,784
    UNITED WHOLESALE MORTGAGE, LLC 235 4.93% $8,674
    Hometown Lenders, Inc. 146 5.29% $10,014
    LOANDEPOT.COM, LLC 145 4.78% $9,909
    MOVEMENT MORTGAGE, LLC 129 5.31% $8,124
    GUILD MORTGAGE COMPANY 100 5.12% $8,694
    Northpointe Bank 92 4.88% $8,803
    DHI MORTGAGE COMPANY, LTD. 89 4.02% $8,586
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 88 5.20% $7,930
    Regions Bank 82 5.07% $8,352
    FirstBank 81 5.09% $8,409
    LEADERONE FINANCIAL CORPORATION 77 4.97% $8,999
    FREEDOM MORTGAGE CORPORATION 72 5.01% $9,178
    HOME POINT FINANCIAL CORPORATION 71 4.85% $9,442
    SouthPoint Bank 66 4.91% $7,642
    Mr. Cooper ( Nationstar Mortgage ) 61 4.68% $12,102
    Trustmark National Bank 58 5.16% $8,995
    Renasant Bank 58 5.01% $8,714
    CALIBER HOME LOANS, INC. 56 5.02% $8,261
    Prosperity Home Mortgage, LLC 55 5.55% $8,659
    PENNYMAC LOAN SERVICES, LLC 54 4.26% $9,248
    TJC Mortgage, Inc. 48 5.01% $8,480
    HOMEBRIDGE FINANCIAL SERVICES, INC. 48 4.74% $9,296
    FBC MORTGAGE, LLC 47 4.96% $10,265
    LAKEVIEW LOAN SERVICING, LLC 46 3.95% $5,469
    Assurance Financial Group, L.L.C. 46 5.58% $9,190
    SOUTHWEST FUNDING, LP 44 5.22% $10,582
    First Federal Bank, A FSB 43 4.70% $7,809
    BancorpSouth 43 4.78% $7,379
    EVERETT FINANCIAL, INC. 38 5.50% $5,947
    Synovus Bank 36 5.57% $8,002
    Carrington Mortgage Services, LLC 31 5.19% $8,198
    Citizens Bank 30 4.28% $8,502
    AMERIFIRST FINANCIAL CORPORATION 30 5.89% $9,189
    BROKER SOLUTIONS, INC. 30 4.94% $9,502
    Ameris Bank 29 4.91% $7,595
    Flagstar Bank, FSB 27 4.57% $6,020
    THE MORTGAGE FIRM, INC. 27 5.49% $9,361
    AMERISAVE MORTGAGE CORPORATION 26 4.51% $10,144
    NEWREZ LLC 25 4.81% $8,530
    HUNT MORTGAGE CORPORATION 22 4.82% $8,048
    HOMEOWNERS FINANCIAL GROUP USA, LLC 22 5.34% $9,950
    CARDINAL FINANCIAL 22 5.42% $8,951
    Hamilton Mortgage Corporation 22 4.98% $6,636
    INTERLINC MORTGAGE SERVICES, LLC 19 4.72% $8,903
    AMERICAN PACIFIC MORTGAGE CORPORATION 17 5.39% $8,748
    Bank of England 16 5.30% $9,174
    RELIANCE FIRST CAPITAL, LLC 15 4.59% $9,910
    GMFS LLC 14 4.60% $7,566
    CROSSCOUNTRY MORTGAGE, LLC 14 5.18% $9,736
    VILLAGE CAPITAL MORTGAGE 13 3.62% $6,163
    UNION HOME MORTGAGE CORP. 13 6.60% $8,413
    HOMESIDE FINANCIAL, LLC 12 5.01% $9,547
    SUN WEST MORTGAGE COMPANY, INC. 12 5.40% $7,354
    AMERICAN FINANCING CORPORATION 11 4.27% $8,700
    VANDERBILT MORTGAGE AND FINANCE, INC. 11 5.15% $9,453
    Nations Lending Corporation 11 5.99% $9,143
    EVANSVILLE TEACHERS 10 4.91% $6,557
    Plains Commerce Bank 10 5.61% $9,228
    First Horizon Bank 10 5.18% $6,652
    FIRST COMMUNITY MORTGAGE, INC. 9 5.11% $5,613
    CMG MORTGAGE, INC. 9 4.61% $9,347
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 9 5.82% $11,299
    MUTUAL OF OMAHA MORTGAGE, INC. 8 5.22% $13,475
    AMERICAN FINANCIAL RESOURCES, INC. 8 5.77% $7,857
    PRIMELENDING, A PLAINSCAPITAL COMPANY 8 5.59% $6,922
    HOMESTAR FINANCIAL CORPORATION 7 5.04% $9,435
    Paramount Residential Mortgage Group, Inc. 7 5.09% $12,812
    First Guaranty Mortgage Corporation 7 3.41% $7,471
    PLAZA HOME MORTGAGE, INC. 7 5.11% $13,360
    PNC Bank 7 4.46% $6,421
    ROYAL UNITED MORTGAGE LLC 6 4.90% $7,744
    PANORAMA MORTGAGE GROUP, LLC 6 4.81% $12,408
    M&T Bank 6 4.56% $7,814
    MILEND, INC. 6 5.63% $14,167
    Mortgage Research Center, LLC 6 5.48% $5,290
    EMM LOANS LLC 5 5.23% $10,468
    GUARANTY HOME MORTGAGE CORPORATION 5 4.85% $6,606
    CIS Financial Services, Inc. 5 5.38% $10,176
    Ixonia Bank 5 5.53% $10,053
    EMBRACE HOME LOANS, INC. 5 5.32% $10,663
    The Federal Savings Bank 4 4.19% $10,893
    Amerifirst Financial, Inc. 4 4.44% $7,284
    Consumer First Mortgage, Inc. 4 4.59% $9,120
    CORNERSTONE HOME LENDING, INC. 4 5.15% $6,943
    Equity Prime Mortgage LLC 4 5.53% $9,654
    FINANCE OF AMERICA MORTGAGE LLC 4 5.03% $8,336
    GSF Mortgage Corporation 4 5.19% $14,869
    Hometown Equity Mortgage, LLC 4 4.81% $8,004
    INSPIRE HOME LOANS INC. 4 6.16% $11,505
    MORTGAGE INVESTORS GROUP, INC. 4 4.78% $5,366
    PLANET HOME LENDING, LLC 4 4.22% $6,761
    Truist 4 4.72% $6,675
    Wells Fargo Bank 4 4.53% $7,038
    BECKAM FUNDING CORP. 3 5.96% $11,725
    SUCCESS MORTGAGE PARTNERS, INC. 3 5.46% $9,596
    PHH Mortgage Corporation 3 4.17% $8,736
    GENEVA FINANCIAL, LLC 3 5.08% $12,595
    JPMorgan Chase Bank 3 5.96% $5,201
    GUARANTEED RATE, INC. 3 5.04% $6,110
    Barrington Bank & Trust Company, N.A. 3 5.25% $6,661
    BAY EQUITY LLC 3 4.54% $9,170
    NEW DAY FINANCIAL, LLC 3 5.63% $7,900
    MICHIGAN MUTUAL, INC. 3 5.42% $12,424
    NFM, INC. 3 6.38% $9,724
    KELLER MORTGAGE, LLC 2 5.25% $6,315
    MORTGAGE SOLUTIONS OF COLORADO, LLC 2 5.44% $9,310
    HOMETRUST MORTGAGE COMPANY 2 3.19% $6,195
    Goldwater Bank, N.A. 2 5.63% $7,656
    Gateway First Bank 2 6.75% $6,387
    ENVOY MORTGAGE, LTD 2 4.81% $7,735
    DRAPER AND KRAMER MORTGAGE CORP. 2 4.88% $10,922
    CHURCHILL MORTGAGE CORPORATION 2 4.63% $10,602
    RESIDENTIAL BANCORP 2 3.69% $8,303
    CERTAINTY HOME LOANS, LLC 2 5.31% $11,212
    RUOFF MORTGAGE COMPANY, INC. 2 5.00% $8,014
    Century Mortgage Company DBA Century Lending Company 2 4.69% $13,638
    CB&S Bank, Inc. 2 4.44% $7,562
    Wyndham Capital Mortgage, Inc. 2 4.25% $6,097
    ATLANTIC BAY MORTGAGE GROUP, L.L.C. 2 5.75% $9,204
    Victorian Finance, LLC 2 3.94% $7,841
    LIBERTY HOME MORTGAGE CORPORATION 2 5.13% $20,338
    UNIVERSITY LENDING GROUP, LLC 1 4.38% $9,633
    CHERRY CREEK MORTGAGE, LLC 1 5.63% $6,165
    U.S. Bank 1 5.75% $5,961
    AMERICAN MORTGAGE SERVICE COMPANY 1 5.63% $6,952
    ZILLOW HOME LOANS, LLC 1 4.75% $8,433
    S1L, Inc. 1 3.25% $5,978
    SECURITYNATIONAL MORTGAGE COMPANY 1 6.13% $10,434
    AMCAP MORTGAGE, LTD. 1 5.75% $9,419
    SOUTHPOINT FINANCIAL SERVICES, INC. 1 5.63% $4,785
    Waterstone Mortgage Corporation 1 5.25% $6,710
    SOVEREIGN LENDING GROUP INCORPORATED 1 4.38% $12,529
    STOCKTON MORTGAGE CORPORATION 1 3.75% $14,584
    GERSHMAN INVESTMENT CORP. 1 5.63% $6,267
    North American Savings Bank, F.S.B. 1 5.00% $18,824
    NATIONWIDE MORTGAGE BANKERS, INC. 1 5.75% $15,253
    Texana Bank 1 4.25% $14,629
    Alcova Mortgage LLC 1 4.63% $3,045
    GUARANTEED RATE AFFINITY, LLC 1 3.38% $5,462
    BANKSOUTH MORTGAGE COMPANY, LLC 1 5.63% $12,617
    TOWNE MORTGAGE COMPANY 1 5.75% $10,172
    ISERVE RESIDENTIAL LENDING, LLC 1 3.75% $17,672
    BankFirst Financial Services 1 5.50% $12,738
    Tyndall Federal Credit Union 1 5.50% $9,541
    MIDLAND MORTGAGE CORPORATION 1 3.88% $1,318
    First State Bank of St. Charles, Missouri 1 6.25% $5,981
    Peoples Bank 1 4.63% $11,867
    OCEANSIDE MORTGAGE COMPANY 1 5.38% $3,764
    First Federal Bank 1 5.38% $10,537
    Wolfe Financial, Inc 1 6.13% $8,358
    Fifth Third Bank 1 5.63% $4,229
    United Community Bank 1 5.50% $6,523
    EAGLE HOME MORTGAGE, LLC 1 5.75% $6,940
    Princeton Mortgage Corporation 1 6.13% $11,707
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 1 4.75% $4,679
    COMMUNITY MORTGAGE CORPORATION 1 5.75% $8,118
    CLEARPATH LENDING 1 3.25% $5,336

    The top Birmingham FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 373 FHA loans originated. Their average total fees are $8,784, which is $109 higher than the next largest lender, UNITED WHOLESALE MORTGAGE, LLC.

    The lowest fee Birmingham FHA lenders (with over 10 loans originated) are LAKEVIEW LOAN SERVICING, LLC ($5,469), EVERETT FINANCIAL, INC. ($5,947), Flagstar Bank, FSB ($6,020), VILLAGE CAPITAL MORTGAGE ($6,163) and EVANSVILLE TEACHERS ($6,557).

    The lowest rate Birmingham FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL MORTGAGE (3.62%), LAKEVIEW LOAN SERVICING, LLC (3.95%), DHI MORTGAGE COMPANY, LTD. (4.02%), PENNYMAC LOAN SERVICES, LLC (4.26%) and AMERICAN FINANCING CORPORATION (4.27%).

    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).