Chattanooga FHA Loan Rates, Closing Costs & Stats

CHATTANOOGA, TN-GA

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.

Chattanooga's 151 lenders originated 2,941 FHA loans during 2021. The total origination value was $559,295,000, with an average FHA loan value of $190,172.

Chattanooga FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Chattanooga averaged 6.62% for the week of 2022-12-02, compared to the national average (all FHA variants) of 6.466% for the same period.

Chattanooga's average FHA mortgage closing costs are $6,592.

The average rate for the prior week (2022-11-25) was 6.44% and one month ago for the week of 2022-10-28, the average rate was 6.78%.

The average rate one year ago was 3.41%.

For refis of the same type during the week of 2022-12-02, the average rate was 6.01%.

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

Chattanooga 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 Chattanooga level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Closing Costs
QUICKEN LOANS, LLC 291 2.71% $5,900
CALIBER HOME LOANS, INC. 163 3.03% $6,996
MOVEMENT MORTGAGE, LLC 128 3.24% $6,562
MORTGAGE INVESTORS GROUP, INC. 123 2.99% $7,336
FREEDOM MORTGAGE CORPORATION 95 2.89% $4,554
LAKEVIEW LOAN SERVICING, LLC 89 2.98% $4,442
TJC Mortgage, Inc. 76 3.06% $7,623
PENNYMAC LOAN SERVICES, LLC 76 3.12% $4,871
HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 71 3.09% $7,378
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 68 3.15% $7,936
BROKER SOLUTIONS, INC. 64 3.29% $6,900
FirstBank 57 3.06% $6,631
Mr. Cooper ( Nationstar Mortgage ) 55 3.35% $3,735
LEADERONE FINANCIAL CORPORATION 50 3.18% $7,855
SUMMIT FUNDING, INC. 50 3.40% $8,282
MEMBER FIRST MORTGAGE, LLC 48 2.87% $7,022
CMG MORTGAGE, INC. 45 3.33% $7,698
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 45 3.22% $6,916
PANORAMA MORTGAGE GROUP, LLC 36 3.47% $7,718
UNITED WHOLESALE MORTGAGE, LLC 32 2.64% $8,135
PRIMELENDING, A PLAINSCAPITAL COMPANY 32 3.43% $7,857
Bank of England 29 3.43% $8,313
VILLAGE CAPITAL MORTGAGE 29 3.09% $2,307
AmeriHome Mortgage Company, LLC 26 2.94% $4,810
ARK-LA-TEX FINANCIAL SERVICES, LLC. 25 3.39% $5,498
STOCKTON MORTGAGE CORPORATION 25 3.27% $7,680
NEWREZ LLC 25 2.88% $4,687
UNION HOME MORTGAGE CORP. 24 2.86% $5,960
DAS Acquisition Company, LLC 24 3.44% $7,652
Carrington Mortgage Services, LLC 24 3.12% $6,675
PRIMARY RESIDENTIAL MORTGAGE, INC. 24 3.70% $7,232
GENEVA FINANCIAL, LLC 23 3.04% $10,968
COMMUNITY MORTGAGE CORPORATION 22 2.71% $6,966
ISERVE RESIDENTIAL LENDING, LLC 22 3.19% $11,356
Independent Bank 21 2.63% $6,798
AMERISAVE MORTGAGE CORPORATION 20 2.90% $8,022
LOANDEPOT.COM, LLC 18 3.24% $7,810
SOUTHWEST FUNDING, LP 17 3.43% $10,341
HOME POINT FINANCIAL CORPORATION 17 3.07% $6,335
FIRST COMMUNITY MORTGAGE, INC. 17 3.70% $8,283
Regions Bank 16 3.01% $6,692
PLANET HOME LENDING, LLC 16 3.33% $6,853
HOMESTAR FINANCIAL CORPORATION 14 2.97% $5,814
VANDERBILT MORTGAGE AND FINANCE, INC. 12 3.14% $8,016
ATLANTIC BAY MORTGAGE GROUP, L.L.C. 12 3.32% $7,094
DHI MORTGAGE COMPANY, LTD. 11 2.75% $8,838
CROSSCOUNTRY MORTGAGE, LLC 10 3.21% $7,954
HOMEBRIDGE FINANCIAL SERVICES, INC. 10 2.68% $4,619
GUILD MORTGAGE COMPANY 9 3.07% $9,613
CHURCHILL MORTGAGE CORPORATION 8 2.88% $7,921
KELLER MORTGAGE, LLC 7 2.66% $7,353
HOMESIDE FINANCIAL, LLC 7 2.96% $7,469
SUCCESS MORTGAGE PARTNERS, INC. 7 2.71% $7,490
VAN DYK MORTGAGE CORPORATION 6 3.29% $3,550
First Guaranty Mortgage Corporation 6 2.94% $5,954
BancorpSouth Bank 6 2.83% $6,368
Loan Simple, Inc. 6 3.48% $8,253
Wolfe Financial, Inc 6 3.06% $8,598
Legends Bank 6 2.85% $7,979
AMERICAN FINANCING CORPORATION 5 3.75% $7,196
Capital City Home Loans, LLC 5 2.78% $9,810
AMERICAN FINANCIAL NETWORK, INC. 5 3.45% $12,530
Nations Lending Corporation 5 2.85% $6,817
FINANCE OF AMERICA MORTGAGE LLC 5 2.90% $8,678
Gateway First Bank 4 4.28% $5,109
Citizens Bank 4 2.81% $7,029
RELIANCE FIRST CAPITAL, LLC 4 3.25% $8,711
Renasant Bank 4 3.65% $5,372
GUARANTY HOME MORTGAGE CORPORATION 4 2.59% $7,969
OCEANSIDE MORTGAGE COMPANY 4 2.78% $2,183
InterContinental Capital Group, Inc 4 2.66% $6,812
First Citizens National Bank 4 2.53% $6,226
Lakeview Community Capital, LLC 4 3.16% $3,783
EVERETT FINANCIAL, INC. 4 3.19% $6,462
LAND HOME FINANCIAL SERVICES, INC. 4 3.13% $6,635
Princeton Mortgage Corporation 4 3.59% $5,721
JPMorgan Chase Bank 3 2.83% $6,512
MUTUAL OF OMAHA MORTGAGE, INC. 3 2.83% $8,450
Prosperity Home Mortgage, LLC 3 2.92% $9,794
PHH Mortgage Corporation 3 3.63% $4,506
AMERICAN PACIFIC MORTGAGE CORPORATION 3 3.33% $8,559
1ST SIGNATURE LENDING, LLC 2 3.25% $11,192
AMERICAN FINANCIAL RESOURCES, INC. 2 3.31% $6,187
Bank of America 2 3.00% $4,640
ENDEAVOR CAPITAL, LLC. 2 2.81% $8,227
Flagstar Bank, FSB 2 2.36% $9,025
MLD MORTGAGE INC. 2 2.44% $7,369
MORIA DEVELOPMENT, INC. 2 3.25% $8,223
Mortgage Assurance Inc. 2 2.69% $6,938
MORTGAGE SOLUTIONS OF COLORADO, LLC 2 3.25% $9,640
Paramount Residential Mortgage Group, Inc. 2 3.25% $7,786
Peoples Bank 2 3.38% $9,686
Reliant Bank 2 3.25% $6,626
Sierra Pacific Mortgage Company, Inc. 2 3.56% $8,397
SOUTHPOINT FINANCIAL SERVICES, INC. 2 2.75% $8,816
South State Bank 2 3.19% $6,767
SOUTHWEST STAGE FUNDING, LLC 2 3.38% $5,179
SWBC MORTGAGE CORPORATION 2 3.19% $3,599
Synovus Bank 2 3.50% $5,967
THE MORTGAGE FIRM, INC. 2 4.31% $8,485
Truist 2 3.18% $7,471
United Community Bank 2 2.94% $6,378
UNITED SECURITY FINANCIAL CORP 2 2.50% $4,743
LENDUS, LLC 1 3.25% $11,105
Pinnacle Bank 1 2.63% $6,783
Plains Commerce Bank 1 2.63% $9,228
Ixonia Bank 1 3.13% $6,512
PLUS RELOCATION MORTGAGE, LLC 1 3.25% $6,830
POLARIS HOME FUNDING CORP. 1 3.00% $14,476
Hometown Lenders, Inc. 1 2.75% $7,286
Hometown Equity Mortgage, LLC 1 3.75% $8,085
HOMESTEAD FUNDING CORP. 1 2.25% $4,971
HOMESPIRE MORTGAGE CORPORATION 1 3.13% $16,109
GUARANTEED RATE, INC. 1 2.88% $7,842
First Home Bank 1 2.88% $10,043
EVANSVILLE TEACHERS 1 3.38% $7,721
Alcova Mortgage LLC 1 3.13% $9,270
Equity Prime Mortgage LLC 1 3.25% $8,578
RUOFF MORTGAGE COMPANY, INC. 1 3.00% $5,628
SeaTrust Mortgage Company 1 3.13% $7,907
ZILLOW HOME LOANS, LLC 1 3.25% $6,793
Simmons Bank 1 2.25% $5,409
SmartBank 1 2.88% $5,249
Barrington Bank & Trust Company, N.A. 1 3.50% $4,244
U.S. Bank 1 3.13% $7,610
DELMAR FINANCIAL COMPANY 1 4.13% $5,514
BANKSOUTH MORTGAGE COMPANY, LLC 1 2.38% $10,424
Stifel Bank and Trust 1 2.63% $5,976
Commerce Home Mortgage, Inc. 1 2.38% $9,448
Colonial Savings, F.A. 1 3.50% $6,963
Citibank 1 2.38% $8,454
SUN WEST MORTGAGE COMPANY, INC. 1 3.25% $5,897
ASPIRE FINANCIAL, INC. 1 2.75% $7,129
AMCAP MORTGAGE, LTD. 1 3.13% $12,359
The Federal Savings Bank 1 2.50% $13,106
Waterstone Mortgage Corporation 1 3.25% $10,240
CapStar Bank 1 2.63% $5,878
TOP FLITE FINANCIAL, INC. 1 3.63% $12,104
M&T Bank 1 3.88% $5,485
Mortgage Research Center, LLC 1 2.88% $3,208
NATIONS DIRECT MORTGAGE, LLC 1 3.50% $8,911
MILEND, INC. 1 3.25% $11,299
NEW DAY FINANCIAL, LLC 1 2.99% $7,460
MIDLAND MORTGAGE CORPORATION 1 3.75% $4,912
Northpointe Bank 1 3.00% $9,871
NP, Inc. 1 3.25% $8,792
MID AMERICA MORTGAGE, INC. 1 3.25% $1,875
Magnolia Bank 1 3.25% $5,994
Willamette Valley Bank 1 3.25% $13,105
LOANPAL, LLC 1 3.50% $8,313
BAY EQUITY LLC 1 2.88% $8,672

The top Chattanooga FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 291 FHA loans originated. Their average total fees are $5,900, which is $1,095 lower than the next largest lender, CALIBER HOME LOANS, INC..

The lowest fee Chattanooga FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL MORTGAGE ($2,307), Mr. Cooper ( Nationstar Mortgage ) ($3,735), LAKEVIEW LOAN SERVICING, LLC ($4,442), FREEDOM MORTGAGE CORPORATION ($4,554) and HOMEBRIDGE FINANCIAL SERVICES, INC. ($4,619).

The lowest rate Chattanooga FHA lenders (with over 10 loans originated) are Independent Bank (2.63%), UNITED WHOLESALE MORTGAGE, LLC (2.64%), HOMEBRIDGE FINANCIAL SERVICES, INC. (2.68%), QUICKEN LOANS, LLC (2.71%) and COMMUNITY MORTGAGE CORPORATION (2.71%).

Chattanooga FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
CHATTANOOGA, TN-GA CATOOSA 2022 $420,680 $538,650 $651,050 $809,150
CHATTANOOGA, TN-GA DADE 2022 $420,680 $538,650 $651,050 $809,150
CHATTANOOGA, TN-GA WALKER 2022 $420,680 $538,650 $651,050 $809,150
CHATTANOOGA, TN-GA HAMILTON 2022 $420,680 $538,650 $651,050 $809,150
CHATTANOOGA, TN-GA MARION 2022 $420,680 $538,650 $651,050 $809,150
CHATTANOOGA, TN-GA SEQUATCHIE 2022 $420,680 $538,650 $651,050 $809,150

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Chattanooga (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 $235,000 (9.3%) $308,125 (6.7%) 0.87 1,817
2018-02-01 $242,200 (9.5%) $320,659 (9.2%) 0.88 1,779
2018-03-01 $250,000 (10.4%) $334,637 (11.0%) 0.88 1,762
2018-04-01 $264,900 (15.2%) $346,083 (11.8%) 0.90 1,754
2018-05-01 $277,500 (15.7%) $355,908 (11.4%) 0.93 1,835
2018-06-01 $275,000 (13.0%) $351,016 (3.0%) 0.92 2,033
2018-07-01 $270,975 (10.6%) $347,919 (2.4%) 0.90 2,177
2018-08-01 $274,800 (14.5%) $348,384 (10.0%) 0.92 2,219
2018-09-01 $269,900 (10.2%) $343,528 (6.5%) 0.91 2,270
2018-10-01 $270,725 (11.4%) $343,251 (6.5%) 0.91 2,281
2018-11-01 $275,000 (17.0%) $345,326 (9.7%) 0.93 2,313
2018-12-01 $271,500 (13.2%) $342,293 (8.7%) 0.94 2,229
2019-01-01 $269,900 (14.9%) $339,291 (10.1%) 0.93 2,087
2019-02-01 $272,000 (12.3%) $339,394 (5.8%) 0.92 2,065
2019-03-01 $283,914 (13.6%) $347,976 (4.0%) 0.93 2,005
2019-04-01 $297,250 (12.2%) $356,637 (3.1%) 0.94 2,001
2019-05-01 $295,175 (6.4%) $362,624 (1.9%) 0.92 2,089
2019-06-01 $294,900 (7.2%) $358,607 (2.2%) 0.92 2,103
2019-07-01 $295,000 (8.9%) $354,911 (2.0%) 0.92 2,187
2019-08-01 $293,609 (6.8%) $348,891 (0.2%) 0.93 2,198
2019-09-01 $291,523 (8.0%) $349,951 (1.9%) 0.93 2,175
2019-10-01 $289,900 (7.1%) $349,597 (1.9%) 0.94 2,174
2019-11-01 $290,000 (5.5%) $350,174 (1.4%) 0.95 2,104
2019-12-01 $295,117 (8.7%) $352,998 (3.1%) 0.98 1,924
2020-01-01 $293,500 (8.7%) $350,853 (3.4%) 0.98 1,734
2020-02-01 $299,900 (10.3%) $363,552 (7.1%) 0.98 1,577
2020-03-01 $309,850 (9.1%) $371,257 (6.7%) 0.97 1,591
2020-04-01 $316,125 (6.4%) $380,560 (6.7%) 0.99 1,593
2020-05-01 $329,900 (11.8%) $403,842 (11.4%) 1.00 1,523
2020-06-01 $337,500 (14.5%) $430,618 (20.1%) 0.99 1,354
2020-07-01 $339,900 (15.2%) $439,522 (23.8%) 0.99 1,230
2020-08-01 $334,900 (14.1%) $430,366 (23.4%) 0.96 1,151
2020-09-01 $329,475 (13.0%) $434,311 (24.1%) 0.94 1,126
2020-10-01 $320,000 (10.4%) $427,087 (22.2%) 0.92 1,051
2020-11-01 $318,950 (10.0%) $426,663 (21.8%) 0.93 1,022
2020-12-01 $312,450 (5.9%) $426,036 (20.7%) 0.93 961
2021-01-01 $319,450 (8.8%) $436,161 (24.3%) 0.95 777
2021-02-01 $333,675 (11.3%) $464,369 (27.7%) 0.97 574
2021-03-01 $347,450 (12.1%) $464,122 (25.0%) 0.99 548
2021-04-01 $351,450 (11.2%) $470,164 (23.6%) 0.95 537
2021-05-01 $349,900 (6.1%) $495,938 (22.8%) 0.93 559
2021-06-01 $350,000 (3.7%) $496,306 (15.3%) 0.92 652
2021-07-01 $335,450 (-1.3%) $459,453 (4.5%) 0.88 757
2021-08-01 $324,925 (-3.0%) $459,815 (6.8%) 0.87 871
2021-09-01 $341,875 (3.8%) $460,142 (6.0%) 0.91 860
2021-10-01 $350,000 (9.4%) $482,496 (13.0%) 0.93 767
2021-11-01 $361,725 (13.4%) $491,937 (15.3%) 0.97 666
2021-12-01 $354,900 (13.6%) $491,681 (15.4%) 0.96 587
2022-01-01 $345,000 (8.0%) $492,195 (12.9%) 0.93 527
2022-02-01 $359,945 (7.9%) $522,044 (12.4%) 0.94 469
2022-03-01 $350,000 (0.7%) $542,500 (16.9%) 0.88 480
2022-04-01 $422,450 (20.2%) $577,078 (22.7%) 1.01 533
2022-05-01 $437,450 (25.0%) $574,568 (15.9%) 1.00 717
2022-06-01 $420,000 (20.0%) $556,688 (12.2%) 0.94 903
2022-07-01 $399,000 (18.9%) $539,862 (17.5%) 0.90 1,116
2022-08-01 $396,900 (22.2%) $517,444 (12.5%) 0.92 1,222
2022-09-01 $399,450 (16.8%) $521,925 (13.4%) 0.93 1,251
2022-10-01 $399,250 (14.1%) $529,530 (9.8%) 0.94 1,316
2022-11-01 $396,500 (9.6%) $520,472 (5.8%) 0.95 1,386
Chattanooga's median listing price for 2022-11-01 was $396,500, a difference of $34,775 (9.6%) versus the prior year and $-2,750 versus the prior month.

Chattanooga's median listing price comes in at 95% of the national average.

Chattanooga's average listing price for 2022-11-01 was $520,472, a difference of $28,535 (5.8%) versus the prior year and $-9,058 versus the prior month.

For the 2022-11-01 period, Chattanooga had 1,386 MLS listings, a difference of 70 listings (5%) versus the prior month and 720 listings (108%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Chattanooga (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 81 days 2,079 sqft
2018-02-01 79 days 2,090 sqft
2018-03-01 58 days 2,140 sqft
2018-04-01 56 days 2,194 sqft
2018-05-01 53 days 2,231 sqft
2018-06-01 50 days 2,171 sqft
2018-07-01 52 days 2,177 sqft
2018-08-01 62 days 2,165 sqft
2018-09-01 61 days 2,165 sqft
2018-10-01 67 days 2,165 sqft
2018-11-01 71 days 2,171 sqft
2018-12-01 77 days 2,152 sqft
2019-01-01 87 days 2,158 sqft
2019-02-01 77 days 2,151 sqft
2019-03-01 67 days 2,187 sqft
2019-04-01 54 days 2,220 sqft
2019-05-01 51 days 2,235 sqft
2019-06-01 57 days 2,245 sqft
2019-07-01 59 days 2,240 sqft
2019-08-01 60 days 2,233 sqft
2019-09-01 63 days 2,240 sqft
2019-10-01 66 days 2,238 sqft
2019-11-01 68 days 2,219 sqft
2019-12-01 76 days 2,217 sqft
2020-01-01 82 days 2,200 sqft
2020-02-01 75 days 2,200 sqft
2020-03-01 54 days 2,244 sqft
2020-04-01 56 days 2,250 sqft
2020-05-01 64 days 2,300 sqft
2020-06-01 62 days 2,309 sqft
2020-07-01 62 days 2,261 sqft
2020-08-01 58 days 2,233 sqft
2020-09-01 50 days 2,180 sqft
2020-10-01 52 days 2,100 sqft
2020-11-01 57 days 2,078 sqft
2020-12-01 60 days 2,039 sqft
2021-01-01 72 days 2,068 sqft
2021-02-01 55 days 2,079 sqft
2021-03-01 38 days 2,100 sqft
2021-04-01 36 days 2,104 sqft
2021-05-01 25 days 2,108 sqft
2021-06-01 29 days 2,075 sqft
2021-07-01 26 days 2,034 sqft
2021-08-01 30 days 2,002 sqft
2021-09-01 36 days 2,028 sqft
2021-10-01 43 days 2,065 sqft
2021-11-01 40 days 2,125 sqft
2021-12-01 46 days 2,072 sqft
2022-01-01 51 days 1,991 sqft
2022-02-01 40 days 2,042 sqft
2022-03-01 28 days 2,019 sqft
2022-04-01 22 days 2,150 sqft
2022-05-01 23 days 2,214 sqft
2022-06-01 29 days 2,211 sqft
2022-07-01 31 days 2,135 sqft
2022-08-01 39 days 2,103 sqft
2022-09-01 45 days 2,115 sqft
2022-10-01 49 days 2,125 sqft
2022-11-01 53 days 2,099 sqft
Chattanooga's median listing age (time on market) for 2022-11-01 was 53 days. This is 33% longer than the same period one year ago.

Chattanooga's median square footage for active listings during the 2022-11-01 period was 2,099 sqft. One year prior, the average listing was 2,125 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).