Birmingham FHA Loan Rates, Closing Costs & Stats

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 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).