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 146 lenders originated 1,792 FHA loans during 2023. The total origination value was $453,060,000, with an average FHA loan value of $252,824.

    Chattanooga FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Chattanooga averaged 6.42% for the week of 2024-11-08, compared to the national average (all FHA variants) of 6.425% for the same period.

    Chattanooga's average FHA mortgage closing costs are $7,620.

    The average rate for the prior week (2024-11-01) was 6.2% and one month ago for the week of 2024-10-04, the average rate was 5.72%.

    The average rate one year ago was 7.46%.

    For refis of the same type during the week of 2024-11-08, the average rate was 6.73%.

    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 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    QUICKEN LOANS, LLC 183 6.19% $10,728
    UNION HOME MORTGAGE CORP. 90 6.72% $11,878
    MOVEMENT MORTGAGE, LLC 86 6.62% $10,978
    MORTGAGE INVESTORS GROUP, INC. 81 6.53% $10,355
    CMG MORTGAGE, INC. 80 6.73% $10,883
    UNITED WHOLESALE MORTGAGE, LLC 71 6.14% $13,869
    LEADERONE FINANCIAL CORPORATION 71 6.58% $11,633
    FirstBank 66 6.45% $11,133
    SUMMIT FUNDING, INC. 65 6.78% $11,774
    TJC Mortgage, Inc. 45 6.40% $10,855
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 30 6.69% $8,742
    FREEDOM MORTGAGE CORPORATION 29 6.87% $12,887
    PENNYMAC LOAN SERVICES, LLC 25 5.91% $13,259
    ALAMEDA MORTGAGE CORPORATION 25 6.86% $12,172
    BROKER SOLUTIONS, INC. 24 6.66% $10,456
    HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 22 6.66% $9,435
    LOANDEPOT.COM, LLC 21 6.50% $12,307
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 20 6.81% $9,322
    DHI MORTGAGE COMPANY, LTD. 19 5.42% $9,099
    FIRST COMMUNITY MORTGAGE, INC. 18 6.62% $12,058
    Equity Prime Mortgage LLC 18 6.53% $13,294
    CARDINAL FINANCIAL 17 6.65% $11,442
    Cornerstone First Mortgage, Inc 17 6.93% $14,399
    GUARANTEED RATE, INC. 16 6.56% $10,883
    Mr. Cooper ( Nationstar Mortgage ) 16 5.98% $14,664
    AMERISAVE MORTGAGE CORPORATION 15 6.18% $12,891
    CROSSCOUNTRY MORTGAGE, LLC 13 6.50% $12,398
    Carrington Mortgage Services, LLC 13 6.12% $13,672
    MEMBER FIRST MORTGAGE, LLC 13 6.05% $9,614
    LAKEVIEW LOAN SERVICING, LLC 12 6.02% $11,271
    STOCKTON MORTGAGE CORPORATION 12 6.70% $13,187
    Regions Bank 12 6.64% $8,126
    NEWREZ LLC 12 6.30% $10,947
    ISERVE RESIDENTIAL LENDING, LLC 11 6.66% $15,939
    RELIANCE FIRST CAPITAL, LLC 11 6.61% $12,070
    SUCCESS MORTGAGE PARTNERS, INC. 10 6.29% $12,895
    Mortgage Research Center, LLC 10 7.19% $7,020
    FIRST COLONY MORTGAGE CORPORATION 10 7.05% $11,940
    ATLANTIC BAY MORTGAGE GROUP, L.L.C. 9 6.75% $9,886
    COMMUNITY MORTGAGE CORPORATION 9 6.53% $8,943
    GUARANTY HOME MORTGAGE CORPORATION 9 6.38% $11,688
    LAND HOME FINANCIAL SERVICES, INC. 9 5.96% $10,692
    United Community Bank 8 6.17% $11,262
    MUTUAL OF OMAHA MORTGAGE, INC. 8 6.58% $14,276
    NFM, INC. 8 7.28% $11,649
    PRIMELENDING, A PLAINSCAPITAL COMPANY 7 6.80% $10,636
    DAS Acquisition Company, LLC 7 7.14% $11,079
    BancorpSouth 7 6.29% $8,969
    Truist 6 6.25% $10,177
    MILEND, INC. 6 6.73% $10,551
    AMERICAN FINANCIAL NETWORK, INC. 6 7.21% $14,640
    SeaTrust Mortgage Company 6 6.46% $12,671
    PANORAMA MORTGAGE GROUP, LLC 6 6.90% $11,688
    ZILLOW HOME LOANS, LLC 5 6.50% $11,307
    BAYSHORE MORTGAGE FUNDING, LLC 5 6.08% $13,060
    First Citizens National Bank 5 6.10% $7,309
    Pinnacle Bank 5 6.13% $8,838
    SWBC MORTGAGE CORPORATION 5 6.63% $6,751
    TOP FLITE FINANCIAL, INC. 5 6.88% $12,166
    PENTAGON FEDERAL CREDIT UNION 4 5.63% $11,313
    EVERETT FINANCIAL, INC. 4 6.84% $9,482
    AMERICAN PACIFIC MORTGAGE CORPORATION 4 6.59% $14,607
    Renasant Bank 4 6.84% $7,700
    ROYAL UNITED MORTGAGE LLC 4 6.84% $13,242
    Magnolia Bank 4 6.88% $9,634
    Prosperity Home Mortgage, LLC 4 6.75% $10,901
    Princeton Mortgage Corporation 4 7.09% $9,165
    TOWNE MORTGAGE COMPANY 4 6.47% $10,608
    PLANET HOME LENDING, LLC 4 6.56% $12,047
    Barrington Bank & Trust Company, N.A. 3 6.44% $8,296
    Independent Bank 3 7.21% $12,237
    NBKC BANK 3 5.54% $8,632
    MIDLAND MORTGAGE CORPORATION 3 7.13% $5,920
    HOMESTAR FINANCIAL CORPORATION 3 6.25% $7,461
    SUN WEST MORTGAGE COMPANY, INC. 3 6.50% $18,574
    Synovus Bank 3 6.54% $8,621
    PHH Mortgage Corporation 3 6.75% $10,887
    PLAZA HOME MORTGAGE, INC. 3 6.50% $12,056
    LOANPAL, LLC 3 6.13% $10,214
    Flagstar Bank, FSB 3 6.25% $12,361
    CHURCHILL MORTGAGE CORPORATION 2 6.37% $11,450
    Wells Fargo Bank 2 6.56% $11,165
    Sierra Pacific Mortgage Company, Inc. 2 6.63% $12,460
    CANOPY MORTGAGE, LLC 2 6.94% $10,694
    Century Mortgage Company DBA Century Lending Company 2 6.69% $10,882
    RUOFF MORTGAGE COMPANY, INC. 2 5.81% $7,819
    PRIMARY RESIDENTIAL MORTGAGE, INC. 2 6.75% $8,812
    ABSOLUTE HOME MORTGAGE CORPORATION 2 7.44% $10,776
    Loan Simple, Inc. 2 6.37% $11,632
    SOUTHEAST MORTGAGE OF GEORGIA, INC. 2 6.13% $13,130
    HOMEOWNERS FINANCIAL GROUP USA, LLC 2 6.69% $10,239
    SmartBank 2 6.25% $8,999
    NEW DAY FINANCIAL, LLC 2 7.50% $5,871
    MID AMERICA MORTGAGE, INC. 2 6.63% $7,564
    THRIVE MORTGAGE, LLC 2 5.75% $20,669
    AmeriHome Mortgage Company, LLC 1 5.63% $14,937
    Wolfe Financial, Inc 1 6.75% $11,194
    The Federal Savings Bank 1 5.63% $12,761
    American Mortgage & Equity Consultants, Inc. 1 7.25% $21,736
    1ST SIGNATURE LENDING, LLC 1 7.25% $12,650
    Towne Bank 1 6.88% $10,129
    AMERICAN FINANCING CORPORATION 1 6.63% $10,438
    AMERICAN FINANCIAL RESOURCES, INC. 1 7.25% $7,518
    ACOPIA, LLC 1 6.25% $11,374
    U.S. Bank 1 5.75% $10,215
    VANDERBILT MORTGAGE AND FINANCE, INC. 1 6.50% $6,385
    VAN DYK MORTGAGE CORPORATION 1 7.13% $2,634
    VERITAS FUNDING, LLC 1 6.25% $17,265
    Franklin Loan Corporation 1 7.13% $14,519
    GUILD MORTGAGE COMPANY 1 5.88% $8,587
    First Vision Bank of Tennessee 1 6.13% $12,924
    FirstTrust Home Loans, Inc. 1 7.13% $12,822
    INTERLINC MORTGAGE SERVICES, LLC 1 7.00% $20,750
    First Federal Bank 1 5.63% $16,110
    Kwik Mortgage Corporation 1 6.75% $9,592
    First-Citizens Bank & Trust Company 1 6.13% $9,677
    FIRST ALLIANCE HOME MORTGAGE, LLC 1 6.00% $13,601
    LEGEND LENDING CORPORATION 1 6.50% $17,574
    Legends Bank 1 5.88% $10,622
    LIBERTY HOME MORTGAGE CORPORATION 1 6.50% $7,350
    Encompass Lending Group, LP 1 6.50% $9,798
    EMM LOANS LLC 1 6.75% $14,210
    MICHIGAN MUTUAL, INC. 1 6.63% $5,870
    CRESCENT MORTGAGE COMPANY 1 7.00% $7,440
    CONTOUR MORTGAGE CORPORATION 1 5.75% $10,893
    Citizens Bank 1 6.63% $5,920
    MORTGAGE SOLUTIONS OF COLORADO, LLC 1 7.75% $7,903
    Centennial Bank 1 7.50% $8,389
    NATIONWIDE MORTGAGE BANKERS, INC. 1 6.63% $16,679
    Capital City Home Loans, LLC 1 6.63% $13,047
    Northpointe Bank 1 6.13% $8,601
    OCEANSIDE MORTGAGE COMPANY 1 7.00% $5,675
    CALCON MUTUAL MORTGAGE LLC 1 7.25% $23,964
    BNC National Bank 1 5.00% $11,819
    PREMIA MORTGAGE, LLC 1 6.13% $7,431
    BECKAM FUNDING CORP. 1 6.63% $20,936
    BAY EQUITY LLC 1 6.75% $6,574
    RANLIFE, INC. 1 6.38% $13,694
    Bank of Tennessee 1 6.99% $7,765
    RESIDENTIAL BANCORP 1 8.25% $8,204
    Residential Mortgage Solutions, Inc. 1 5.75% $10,599
    S1L, Inc. 1 6.25% $13,839
    Bank of England 1 6.13% $11,502
    SECURITYNATIONAL MORTGAGE COMPANY 1 7.63% $11,521
    SIRVA MORTGAGE, INC. 1 6.63% $7,895
    Arvest Bank 1 7.00% $7,958

    The top Chattanooga FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 183 FHA loans originated. Their average total fees are $10,728, which is $1,151 lower than the next largest lender, UNION HOME MORTGAGE CORP..

    The lowest fee Chattanooga FHA lenders (with over 10 loans originated) are Mortgage Research Center, LLC ($7,020), Regions Bank ($8,126), ARK-LA-TEX FINANCIAL SERVICES, LLC. ($8,742), DHI MORTGAGE COMPANY, LTD. ($9,099) and FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($9,322).

    The lowest rate Chattanooga FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.42%), PENNYMAC LOAN SERVICES, LLC (5.91%), Mr. Cooper ( Nationstar Mortgage ) (5.98%), LAKEVIEW LOAN SERVICING, LLC (6.02%) and MEMBER FIRST MORTGAGE, LLC (6.05%).

    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).