Chattanooga FHA Loan Rates, Closing Costs & Stats

CHATTANOOGA, TN-GA

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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.

    Chattanooga's 150 lenders originated 1,995 FHA loans during 2024. The total origination value was $540,845,000, with an average FHA loan value of $271,100.

    Chattanooga FHA Loans, 30 Year Fixed Rates

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

    Chattanooga's average FHA mortgage closing costs are $8,104.

    The average rate for the prior week (2025-06-13) was 6.88% and one month ago for the week of 2025-05-16, the average rate was 6.64%.

    The average rate one year ago was 7%.

    For refis of the same type during the week of 2025-06-20, the average rate was -0.16%.

    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 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    QUICKEN LOANS, LLC 204 6.29% $10,986
    UNION HOME MORTGAGE CORP. 106 6.46% $12,003
    MOVEMENT MORTGAGE, LLC 103 6.62% $11,001
    UNITED WHOLESALE MORTGAGE, LLC 97 5.99% $13,997
    CMG MORTGAGE, INC. 82 6.61% $11,361
    SUMMIT FUNDING, INC. 80 6.82% $12,656
    DHI MORTGAGE COMPANY, LTD. 77 5.41% $8,816
    MORTGAGE INVESTORS GROUP, INC. 63 6.24% $10,686
    LEADERONE FINANCIAL CORPORATION 55 6.57% $11,922
    FREEDOM MORTGAGE CORPORATION 52 6.47% $11,313
    FirstBank 49 6.24% $11,737
    BROKER SOLUTIONS, INC. 44 6.72% $12,614
    LOANDEPOT.COM, LLC 43 6.34% $11,048
    TJC Mortgage, Inc. 41 6.14% $12,012
    HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 37 6.69% $10,557
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 34 6.20% $9,059
    PENNYMAC LOAN SERVICES, LLC 32 6.04% $11,987
    ALAMEDA MORTGAGE CORPORATION 31 6.41% $10,707
    GUILD MORTGAGE COMPANY 25 6.83% $12,420
    GUARANTEED RATE, INC. 22 6.45% $12,171
    ISERVE RESIDENTIAL LENDING, LLC 16 6.75% $17,324
    COMMUNITY MORTGAGE CORPORATION 16 6.23% $10,285
    ATLANTIC BAY MORTGAGE GROUP, L.L.C. 16 6.59% $10,520
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 14 6.86% $11,128
    PRIMELENDING, A PLAINSCAPITAL COMPANY 13 6.51% $12,405
    FIRST COMMUNITY MORTGAGE, INC. 12 6.72% $12,354
    NEWREZ LLC 12 6.23% $11,731
    Regions Bank 12 6.69% $8,117
    CROSSCOUNTRY MORTGAGE, LLC 10 6.36% $11,204
    LAKEVIEW LOAN SERVICING, LLC 10 6.28% $10,023
    STOCKTON MORTGAGE CORPORATION 10 6.85% $12,200
    Mr. Cooper ( Nationstar Mortgage ) 9 6.49% $12,706
    VILLAGE CAPITAL MORTGAGE 9 6.72% $5,267
    Carrington Mortgage Services, LLC 9 6.03% $12,237
    SmartBank 9 6.25% $8,946
    NFM, INC. 9 7.11% $12,866
    MUTUAL OF OMAHA MORTGAGE, INC. 8 6.41% $19,007
    TruHome Solutions, LLC 8 6.45% $8,629
    Equity Prime Mortgage LLC 8 6.70% $10,576
    CANOPY MORTGAGE, LLC 8 6.56% $11,946
    ZILLOW HOME LOANS, LLC 7 6.25% $10,931
    BancorpSouth 7 6.41% $8,856
    Legends Bank 7 6.23% $9,777
    LOANPAL, LLC 7 5.50% $11,628
    RELIANCE FIRST CAPITAL, LLC 7 6.46% $14,233
    Truist 7 6.14% $9,978
    AMERISAVE MORTGAGE CORPORATION 6 6.35% $14,237
    PLANET HOME LENDING, LLC 6 6.10% $9,305
    Renasant Bank 6 6.46% $9,549
    United Community Bank 6 6.27% $10,774
    AmeriHome Mortgage Company, LLC 5 6.50% $6,495
    Flagstar Bank, FSB 5 5.97% $11,386
    MORTGAGE SOLUTIONS OF COLORADO, LLC 5 7.05% $20,654
    TOP FLITE FINANCIAL, INC. 5 7.03% $11,519
    AMERICAN PACIFIC MORTGAGE CORPORATION 5 6.88% $11,339
    SUN WEST MORTGAGE COMPANY, INC. 4 5.91% $22,948
    Capital City Home Loans, LLC 4 6.88% $11,966
    Synovus Bank 4 6.19% $11,116
    CARDINAL FINANCIAL 4 6.47% $15,119
    AMERICAN FINANCIAL NETWORK, INC. 4 6.19% $13,283
    MID AMERICA MORTGAGE, INC. 4 6.72% $13,679
    MEMBER FIRST MORTGAGE, LLC 4 6.22% $9,910
    AMERICAN FINANCING CORPORATION 3 5.91% $13,981
    CHURCHILL MORTGAGE CORPORATION 3 6.71% $13,636
    GUARANTY MORTGAGE SERVICES, L.L.C. 3 6.75% $6,349
    SUCCESS MORTGAGE PARTNERS, INC. 3 6.58% $13,669
    HOMEBRIDGE FINANCIAL SERVICES, INC. 3 5.92% $9,287
    ROSS MORTGAGE CORPORATION 3 6.50% $12,870
    Mortgage Research Center, LLC 3 7.21% $5,479
    BAY EQUITY LLC 3 6.17% $11,521
    Nations Lending Corporation 3 6.92% $6,814
    The Loan Store, Inc. 3 6.04% $8,908
    ENDEAVOR CAPITAL, LLC. 3 6.21% $10,351
    Cornerstone First Mortgage, Inc 3 6.42% $15,151
    Ixonia Bank 3 6.46% $11,903
    FIRST COLONY MORTGAGE CORPORATION 2 6.25% $11,700
    First Horizon Bank 2 6.44% $10,045
    Franklin Loan Corporation 2 5.94% $16,490
    GMFS LLC 2 6.44% $8,600
    DAS Acquisition Company, LLC 2 6.88% $15,274
    HOMESIDE FINANCIAL, LLC 2 6.49% $13,967
    Independent Bank 2 6.44% $9,106
    INTELLILOAN, INC. 2 6.00% $6,303
    LADERA LENDING, INC. 2 6.44% $14,536
    Century Mortgage Company DBA Century Lending Company 2 6.25% $12,269
    Loan Simple, Inc. 2 7.19% $16,191
    Magnolia Bank 2 6.75% $11,472
    MILEND, INC. 2 6.06% $13,144
    NATIONS DIRECT MORTGAGE, LLC 2 5.75% $20,156
    PENTAGON FEDERAL CREDIT UNION 2 6.13% $9,427
    POLARIS HOME FUNDING CORP. 2 6.56% $14,390
    Bank of England 2 6.19% $10,606
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 2 5.88% $12,117
    SWBC MORTGAGE CORPORATION 2 6.19% $3,539
    Texana Bank 2 6.31% $15,208
    The Federal Savings Bank 2 6.63% $17,775
    AMERICAN FINANCIAL RESOURCES, INC. 2 6.50% $16,665
    ACOPIA, LLC 2 6.38% $15,887
    VAN DYK MORTGAGE CORPORATION 2 6.81% $12,790
    VERITAS FUNDING, LLC 2 5.88% $18,430
    First Citizens National Bank 2 6.00% $7,093
    Paramount Residential Mortgage Group, Inc. 1 5.75% $8,864
    BANKSOUTH MORTGAGE COMPANY, LLC 1 6.25% $16,338
    1ST SIGNATURE LENDING, LLC 1 6.13% $20,191
    CapStar Bank 1 6.88% $11,194
    PLAZA HOME MORTGAGE, INC. 1 7.25% $15,276
    PNC Bank 1 6.63% $9,295
    First Option Mortgage, LLC 1 6.63% $9,355
    Presidential Bank, FSB 1 6.25% $18,338
    PRIMARY RESIDENTIAL MORTGAGE, INC. 1 6.63% $12,727
    First Federal Bank 1 6.38% $11,250
    MICHIGAN MUTUAL, INC. 1 6.25% $6,620
    RANLIFE, INC. 1 5.88% $19,038
    Wells Fargo Bank 1 7.00% $8,395
    Wolfe Financial, Inc 1 6.25% $8,131
    LIBERTY HOME MORTGAGE CORPORATION 1 7.38% $15,129
    Waterstone Mortgage Corporation 1 6.13% $16,806
    ROYAL UNITED MORTGAGE LLC 1 5.75% $9,500
    RUOFF MORTGAGE COMPANY, INC. 1 6.63% $5,777
    SeaTrust Mortgage Company 1 5.63% $10,793
    AMERICAN PORTFOLIO MORTGAGE CORPORATION 1 7.00% $13,008
    SOUTHEAST MORTGAGE OF GEORGIA, INC. 1 6.13% $11,376
    SOUTHWEST FUNDING, LP 1 7.63% $7,463
    LEGEND LENDING CORPORATION 1 6.13% $19,294
    Legacy Home Loans, LLC 1 5.63% $13,464
    UNITED NORTHERN MORTGAGE BANKERS LIMITED 1 5.25% $29,389
    LAND HOME FINANCIAL SERVICES, INC. 1 6.38% $8,916
    EVERETT FINANCIAL, INC. 1 6.63% $15,538
    JPMorgan Chase Bank 1 6.13% $11,273
    EVANSVILLE TEACHERS 1 5.75% $6,188
    EUSTIS AND AMERICAN MORTGAGE COMPANY 1 6.75% $10,105
    The Huntington National Bank 1 7.75% $7,582
    Home Mortgage Alliance Corp 1 6.63% $7,953
    THE MORTGAGE FIRM, INC. 1 6.25% $10,619
    East Coast Capital Corp. 1 6.75% $13,106
    EMM LOANS LLC 1 5.75% $14,883
    Towne Bank 1 6.13% $11,442
    BETTER MORTGAGE CORPORATION 1 6.25% $9,239
    ABSOLUTE HOME MORTGAGE CORPORATION 1 6.50% $8,652
    M&T Bank 1 6.25% $7,977
    NATIONWIDE MORTGAGE BANKERS, INC. 1 8.25% $12,062
    NBKC BANK 1 6.13% $9,118
    NETWORK CAPITAL FUNDING CORPORATION 1 6.75% $8,988
    NEW DAY FINANCIAL, LLC 1 7.75% $2,466
    Bell Bank 1 6.25% $13,767
    NexBank 1 6.75% $11,888
    Capital Bank 1 6.50% $6,263
    NORWICH COMMERCIAL GROUP, INC. 1 6.25% $5,313
    Old National Bank 1 7.24% $10,493
    PANORAMA MORTGAGE GROUP, LLC 1 7.25% $7,462

    The top Chattanooga FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 204 FHA loans originated. Their average total fees are $10,986, which is $1,017 lower than the next largest lender, UNION HOME MORTGAGE CORP..

    The lowest fee Chattanooga FHA lenders (with over 10 loans originated) are Regions Bank ($8,117), DHI MORTGAGE COMPANY, LTD. ($8,816), ARK-LA-TEX FINANCIAL SERVICES, LLC. ($9,059), LAKEVIEW LOAN SERVICING, LLC ($10,023) and COMMUNITY MORTGAGE CORPORATION ($10,285).

    The lowest rate Chattanooga FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.41%), UNITED WHOLESALE MORTGAGE, LLC (5.99%), PENNYMAC LOAN SERVICES, LLC (6.04%), TJC Mortgage, Inc. (6.14%) and ARK-LA-TEX FINANCIAL SERVICES, LLC. (6.20%).

    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
    CHATTANOOGA, TN-GA CATOOSA 2023 $472,030 $604,400 $730,525 $907,900
    CHATTANOOGA, TN-GA DADE 2023 $472,030 $604,400 $730,525 $907,900
    CHATTANOOGA, TN-GA WALKER 2023 $472,030 $604,400 $730,525 $907,900
    CHATTANOOGA, TN-GA HAMILTON 2023 $472,030 $604,400 $730,525 $907,900
    CHATTANOOGA, TN-GA MARION 2023 $472,030 $604,400 $730,525 $907,900
    CHATTANOOGA, TN-GA SEQUATCHIE 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).