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 82 lenders originated 449 FHA loans during 2023. The total origination value was $108,455,000, with an average FHA loan value of $241,548.

    Cleveland FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Cleveland averaged 6.65% for the week of 2024-07-19, compared to the national average (all FHA variants) of 6.59% for the same period.

    Cleveland's average FHA mortgage closing costs are $7,497.

    The average rate for the prior week (2024-07-12) was 6.8% and one month ago for the week of 2024-06-14, the average rate was 6.66%.

    The average rate one year ago was 6.75%.

    For refis of the same type during the week of 2024-07-19, the average rate was 6.8%.

    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 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    QUICKEN LOANS, LLC 48 6.26% $10,128
    CMG MORTGAGE, INC. 43 6.58% $10,998
    MORTGAGE INVESTORS GROUP, INC. 20 6.44% $9,628
    UNITED WHOLESALE MORTGAGE, LLC 20 6.50% $12,506
    TJC Mortgage, Inc. 17 6.66% $11,900
    United Community Bank 17 6.15% $9,745
    BancorpSouth 15 6.29% $7,702
    UNION HOME MORTGAGE CORP. 10 6.79% $12,679
    MOVEMENT MORTGAGE, LLC 9 6.36% $10,291
    First Citizens National Bank 9 6.58% $8,381
    FIRST COMMUNITY MORTGAGE, INC. 8 6.73% $9,139
    LOANDEPOT.COM, LLC 7 6.41% $13,677
    CARDINAL FINANCIAL 7 6.98% $12,881
    FirstBank 7 6.55% $10,477
    Regions Bank 7 6.04% $8,110
    SUCCESS MORTGAGE PARTNERS, INC. 6 6.10% $13,032
    Equity Prime Mortgage LLC 5 6.75% $14,227
    LEADERONE FINANCIAL CORPORATION 5 6.63% $13,467
    FREEDOM MORTGAGE CORPORATION 5 6.95% $13,790
    PANORAMA MORTGAGE GROUP, LLC 4 7.28% $11,618
    STOCKTON MORTGAGE CORPORATION 4 5.63% $10,965
    SUMMIT FUNDING, INC. 4 6.53% $11,021
    BROKER SOLUTIONS, INC. 4 6.59% $15,315
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 4 6.75% $9,965
    SmartBank 4 6.78% $7,780
    VANDERBILT MORTGAGE AND FINANCE, INC. 4 6.59% $9,226
    ALAMEDA MORTGAGE CORPORATION 3 6.50% $12,920
    AMERICAN PACIFIC MORTGAGE CORPORATION 3 6.46% $10,579
    AMERISAVE MORTGAGE CORPORATION 3 6.13% $18,148
    CROSSCOUNTRY MORTGAGE, LLC 3 6.25% $7,940
    DHI MORTGAGE COMPANY, LTD. 3 5.83% $9,723
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 3 6.16% $12,500
    GUARANTY HOME MORTGAGE CORPORATION 3 6.67% $10,253
    HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 3 6.21% $11,695
    ISERVE RESIDENTIAL LENDING, LLC 3 7.25% $13,565
    LOANPAL, LLC 3 6.29% $16,128
    MUTUAL OF OMAHA MORTGAGE, INC. 3 7.21% $13,074
    PENNYMAC LOAN SERVICES, LLC 3 6.12% $14,173
    The Loan Store, Inc. 3 7.12% $10,857
    Truist 3 6.30% $6,003
    SeaTrust Mortgage Company 2 6.19% $11,447
    Mr. Cooper ( Nationstar Mortgage ) 2 5.94% $17,258
    DAS Acquisition Company, LLC 2 7.13% $11,190
    LAKEVIEW LOAN SERVICING, LLC 2 6.75% $14,852
    LAND HOME FINANCIAL SERVICES, INC. 2 6.13% $10,454
    Flagstar Bank, FSB 2 5.69% $17,647
    GUARANTEED RATE, INC. 2 6.56% $7,787
    Pinnacle Bank 2 6.31% $10,455
    AMERICAN PORTFOLIO MORTGAGE CORPORATION 1 5.13% $25,558
    Nations Lending Corporation 1 6.25% $11,300
    NBKC BANK 1 5.25% $11,555
    NEWREZ LLC 1 5.75% $16,106
    Northpointe Bank 1 5.63% $6,509
    Paramount Residential Mortgage Group, Inc. 1 6.75% $8,075
    AMERICAN FINANCING CORPORATION 1 6.13% $13,368
    Plains Commerce Bank 1 7.00% $6,961
    PLANET HOME LENDING, LLC 1 5.25% $12,943
    FIRST COLONY MORTGAGE CORPORATION 1 7.50% $10,359
    EVERETT FINANCIAL, INC. 1 7.13% $10,641
    RELIANCE FIRST CAPITAL, LLC 1 6.25% $11,127
    Renasant Bank 1 5.75% $7,863
    Simmons Bank 1 6.13% $7,066
    Cornerstone First Mortgage, Inc 1 7.63% $14,625
    Citizens Bank 1 6.75% $4,094
    Century Mortgage Company DBA Century Lending Company 1 7.25% $6,946
    SUN WEST MORTGAGE COMPANY, INC. 1 7.13% $12,406
    VAN DYK MORTGAGE CORPORATION 1 5.88% $4,222
    BAYSHORE MORTGAGE FUNDING, LLC 1 5.75% $14,605
    TOP FLITE FINANCIAL, INC. 1 7.13% $16,213
    TOWNE MORTGAGE COMPANY 1 7.25% $8,572
    VILLAGE CAPITAL MORTGAGE 1 7.00% $5,144
    Barrington Bank & Trust Company, N.A. 1 5.75% $8,132
    Independent Bank 1 7.13% $7,352
    MANN FINANCIAL INC. 1 7.25% $7,367
    Axos Bank 1 5.63% $11,504
    MEMBER FIRST MORTGAGE, LLC 1 6.13% $5,549
    MID AMERICA MORTGAGE, INC. 1 7.50% $6,130
    MIDLAND MORTGAGE CORPORATION 1 6.25% $15,696
    MILEND, INC. 1 6.25% $8,074
    Gateway First Bank 1 6.25% $9,604
    Mortgage Research Center, LLC 1 7.13% $3,040
    Franklin Loan Corporation 1 5.25% $24,323

    The top Cleveland FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 48 FHA loans originated. Their average total fees are $10,128, which is $870 lower than the next largest lender, CMG MORTGAGE, INC..

    The lowest fee Cleveland FHA lenders (with over 10 loans originated) are BancorpSouth ($7,702), MORTGAGE INVESTORS GROUP, INC. ($9,628), United Community Bank ($9,745), QUICKEN LOANS, LLC ($10,128) and CMG MORTGAGE, INC. ($10,998).

    The lowest rate Cleveland FHA lenders (with over 10 loans originated) are United Community Bank (6.15%), QUICKEN LOANS, LLC (6.26%), BancorpSouth (6.29%), MORTGAGE INVESTORS GROUP, INC. (6.44%) and UNITED WHOLESALE MORTGAGE, LLC (6.50%).

    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).