Cleveland FHA Loan Rates, Closing Costs & Stats

CLEVELAND, TN

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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.

    Cleveland's 90 lenders originated 524 FHA loans during 2024. The total origination value was $136,030,000, with an average FHA loan value of $259,599.

    Cleveland FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Cleveland averaged 0.1% for the week of 2025-06-20, compared to the national average (all FHA variants) of 0% for the same period.

    Cleveland's average FHA mortgage closing costs are $7,953.

    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 6.54%.

    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 -0.17%.

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

    Cleveland 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 Cleveland level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    CMG MORTGAGE, INC. 50 6.54% $10,995
    QUICKEN LOANS, LLC 49 6.20% $12,217
    DHI MORTGAGE COMPANY, LTD. 39 5.27% $8,453
    MORTGAGE INVESTORS GROUP, INC. 23 6.43% $10,935
    United Community Bank 20 6.38% $9,803
    UNITED WHOLESALE MORTGAGE, LLC 20 5.93% $13,390
    TJC Mortgage, Inc. 16 6.47% $11,427
    BancorpSouth 13 6.25% $8,161
    SUMMIT FUNDING, INC. 12 6.96% $11,846
    UNION HOME MORTGAGE CORP. 11 6.41% $12,515
    First Citizens National Bank 10 6.23% $8,282
    LEADERONE FINANCIAL CORPORATION 10 6.56% $10,976
    LOANDEPOT.COM, LLC 10 6.06% $12,763
    FREEDOM MORTGAGE CORPORATION 10 6.30% $9,732
    AMERICAN PACIFIC MORTGAGE CORPORATION 8 6.45% $15,230
    The Loan Store, Inc. 8 6.20% $12,277
    FirstBank 7 6.36% $11,534
    ISERVE RESIDENTIAL LENDING, LLC 6 6.46% $13,238
    Equity Prime Mortgage LLC 5 7.40% $8,538
    FIRST COMMUNITY MORTGAGE, INC. 5 6.63% $9,375
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 5 6.50% $10,777
    Regions Bank 4 6.50% $9,554
    GUARANTEED RATE, INC. 4 6.39% $10,914
    CROSSCOUNTRY MORTGAGE, LLC 4 6.50% $14,112
    Flagstar Bank, FSB 4 5.74% $13,155
    MUTUAL OF OMAHA MORTGAGE, INC. 4 7.25% $11,616
    Mr. Cooper ( Nationstar Mortgage ) 4 6.56% $16,858
    MOVEMENT MORTGAGE, LLC 4 6.63% $10,930
    ALAMEDA MORTGAGE CORPORATION 3 6.29% $8,979
    BROKER SOLUTIONS, INC. 3 6.38% $8,696
    GUILD MORTGAGE COMPANY 3 6.50% $12,939
    SmartBank 3 6.00% $9,439
    STOCKTON MORTGAGE CORPORATION 3 6.42% $12,241
    SUN WEST MORTGAGE COMPANY, INC. 3 6.00% $12,396
    LAKEVIEW LOAN SERVICING, LLC 3 6.33% $13,481
    AMERICAN FINANCIAL NETWORK, INC. 2 6.31% $11,569
    TruHome Solutions, LLC 2 6.56% $9,133
    Truist 2 6.41% $6,127
    COMMUNITY MORTGAGE CORPORATION 2 5.88% $8,473
    CHURCHILL MORTGAGE CORPORATION 2 6.88% $8,990
    Century Mortgage Company DBA Century Lending Company 2 7.00% $12,133
    LOANPAL, LLC 2 5.94% $12,654
    CARDINAL FINANCIAL 2 6.75% $10,163
    PENNYMAC LOAN SERVICES, LLC 2 5.69% $12,431
    ENDEAVOR CAPITAL, LLC. 2 6.63% $9,416
    VERITAS FUNDING, LLC 1 6.00% $18,836
    AMERICAN FINANCIAL RESOURCES, INC. 1 6.25% $9,685
    AMERICAN FINANCING CORPORATION 1 7.25% $9,000
    AmeriHome Mortgage Company, LLC 1 6.50% $6,759
    AMERISAVE MORTGAGE CORPORATION 1 6.25% $12,623
    Ameris Bank 1 5.75% $12,529
    BANKSOUTH MORTGAGE COMPANY, LLC 1 6.25% $16,181
    COMPASS MORTGAGE, INC. 1 7.13% $10,060
    CONTOUR MORTGAGE CORPORATION 1 7.13% $11,484
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 1 7.75% $6,470
    FIRST COLONY MORTGAGE CORPORATION 1 5.50% $8,021
    First Federal Bank 1 6.38% $9,643
    GERSHMAN INVESTMENT CORP. 1 6.50% $5,702
    GMFS LLC 1 7.13% $7,137
    GUARANTY MORTGAGE SERVICES, L.L.C. 1 6.25% $8,919
    HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 1 6.00% $10,023
    HOMEBRIDGE FINANCIAL SERVICES, INC. 1 6.50% $4,549
    Ixonia Bank 1 6.38% $10,497
    Magnolia Bank 1 6.63% $9,726
    MEMBER FIRST MORTGAGE, LLC 1 5.63% $10,487
    MICHIGAN MUTUAL, INC. 1 5.75% $12,469
    MILEND, INC. 1 6.13% $12,696
    MORTGAGE SOLUTIONS OF COLORADO, LLC 1 7.25% $20,162
    NATIONS RELIABLE LENDING, LLC 1 6.00% $21,980
    NEWREZ LLC 1 6.88% $11,822
    NFM, INC. 1 7.63% $7,459
    OCEANSIDE MORTGAGE COMPANY 1 5.63% $4,330
    OCMBC, INC. 1 7.13% $6,603
    Paramount Residential Mortgage Group, Inc. 1 5.75% $10,851
    Patriot Bank 1 5.50% $8,889
    PHH Mortgage Corporation 1 6.49% $7,158
    Pinnacle Bank 1 6.13% $8,659
    Presidential Bank, FSB 1 7.25% $7,902
    PRIMELENDING, A PLAINSCAPITAL COMPANY 1 7.25% $13,231
    RELIANCE FIRST CAPITAL, LLC 1 7.13% $14,584
    Renasant Bank 1 7.00% $5,716
    SeaTrust Mortgage Company 1 6.25% $11,770
    Sierra Pacific Mortgage Company, Inc. 1 5.63% $10,939
    SUCCESS MORTGAGE PARTNERS, INC. 1 6.38% $11,005
    The Federal Savings Bank 1 6.13% $15,929
    TOP FLITE FINANCIAL, INC. 1 6.13% $14,145
    TOTAL MORTGAGE SERVICES, LLC 1 7.63% $9,605
    Union Savings Bank 1 6.00% $6,325
    UNITED MORTGAGE CORP 1 7.25% $8,010
    VANDERBILT MORTGAGE AND FINANCE, INC. 1 7.13% $11,419

    The top Cleveland FHA lender as defined by loan originations is CMG MORTGAGE, INC., with 50 FHA loans originated. Their average total fees are $10,995, which is $1,222 lower than the next largest lender, QUICKEN LOANS, LLC.

    The lowest fee Cleveland FHA lenders (with over 10 loans originated) are BancorpSouth ($8,161), First Citizens National Bank ($8,282), DHI MORTGAGE COMPANY, LTD. ($8,453), FREEDOM MORTGAGE CORPORATION ($9,732) and United Community Bank ($9,803).

    The lowest rate Cleveland FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.27%), UNITED WHOLESALE MORTGAGE, LLC (5.93%), LOANDEPOT.COM, LLC (6.06%), QUICKEN LOANS, LLC (6.20%) and First Citizens National Bank (6.23%).

    Cleveland FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    CLEVELAND, TN BRADLEY 2022 $420,680 $538,650 $651,050 $809,150
    CLEVELAND, TN POLK 2022 $420,680 $538,650 $651,050 $809,150
    CLEVELAND, TN BRADLEY 2023 $472,030 $604,400 $730,525 $907,900
    CLEVELAND, TN POLK 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).