Decatur FHA Loan Rates, Closing Costs & Stats

DECATUR, IL

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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.

    Decatur's 45 lenders originated 271 FHA loans during 2023. The total origination value was $35,315,000, with an average FHA loan value of $130,314.

    Decatur FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Decatur averaged 6.4% for the week of 2024-11-08, compared to the national average (all FHA variants) of 6.425% for the same period.

    Decatur's average FHA mortgage closing costs are $4,942.

    The average rate for the prior week (2024-11-01) was 6.27% and one month ago for the week of 2024-10-04, the average rate was 6.19%.

    The average rate one year ago was 7.24%.

    For refis of the same type during the week of 2024-11-08, the average rate was 6.23%.

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

    Decatur 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 Decatur level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    FLAT BRANCH MORTGAGE, INC. 45 7.04% $6,047
    QUICKEN LOANS, LLC 24 6.51% $6,590
    Regions Bank 23 6.58% $5,196
    DRAPER AND KRAMER MORTGAGE CORP. 17 6.73% $5,787
    CROSSCOUNTRY MORTGAGE, LLC 17 7.08% $6,931
    Heartland Bank and Trust Company 15 6.38% $4,726
    FIRST STATE MORTGAGE SERVICES, LLC 10 6.85% $5,892
    PNC Bank 9 6.79% $5,483
    Busey Bank 9 6.67% $4,623
    MYCUMORTGAGE, LLC 7 7.02% $4,797
    BROKER SOLUTIONS, INC. 6 6.56% $6,652
    UNITED WHOLESALE MORTGAGE, LLC 6 6.23% $7,609
    PENNYMAC LOAN SERVICES, LLC 4 6.50% $7,330
    CALIBER HOME LOANS, INC. 4 5.91% $7,212
    CIBM Bank 4 7.03% $5,201
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 4 6.28% $12,267
    Flagstar Bank, FSB 4 6.47% $6,482
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 3 6.58% $4,924
    LOANDEPOT.COM, LLC 3 6.50% $9,408
    FREEDOM MORTGAGE CORPORATION 3 6.63% $11,502
    MOVEMENT MORTGAGE, LLC 3 6.46% $10,174
    AMERICAN FINANCING CORPORATION 2 6.44% $3,189
    AMERICAN PACIFIC MORTGAGE CORPORATION 2 6.50% $8,635
    AMERISAVE MORTGAGE CORPORATION 2 5.94% $12,981
    ENDEAVOR CAPITAL, LLC. 2 6.06% $7,221
    Mortgage Research Center, LLC 2 5.94% $12,924
    MUTUAL OF OMAHA MORTGAGE, INC. 2 6.69% $7,051
    NEWREZ LLC 2 7.00% $7,748
    ROYAL UNITED MORTGAGE LLC 2 7.06% $7,698
    Wells Fargo Bank 2 7.38% $5,222
    Ixonia Bank 1 5.88% $7,969
    U.S. Bank 1 6.88% $7,038
    NFM, INC. 1 6.75% $8,112
    GUARANTEED RATE, INC. 1 7.63% $5,870
    PLAZA HOME MORTGAGE, INC. 1 7.25% $6,950
    Fortress Bank 1 7.75% $4,929
    CARDINAL FINANCIAL 1 7.25% $8,690
    Associated Bank 1 5.75% $4,870
    ZILLOW HOME LOANS, LLC 1 6.13% $6,620
    Servion, Inc. 1 7.25% $5,251
    MORIA DEVELOPMENT, INC. 1 7.13% $7,911
    The Federal Savings Bank 1 5.63% $7,978
    LAKEVIEW LOAN SERVICING, LLC 1 7.13% $7,468
    Mr. Cooper ( Nationstar Mortgage ) 1 6.75% $9,828
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 6.75% $3,859

    The top Decatur FHA lender as defined by loan originations is FLAT BRANCH MORTGAGE, INC., with 45 FHA loans originated. Their average total fees are $6,047, which is $543 lower than the next largest lender, QUICKEN LOANS, LLC.

    The lowest fee Decatur FHA lenders (with over 10 loans originated) are Heartland Bank and Trust Company ($4,726), Regions Bank ($5,196), DRAPER AND KRAMER MORTGAGE CORP. ($5,787), FIRST STATE MORTGAGE SERVICES, LLC ($5,892) and FLAT BRANCH MORTGAGE, INC. ($6,047).

    The lowest rate Decatur FHA lenders (with over 10 loans originated) are Heartland Bank and Trust Company (6.38%), QUICKEN LOANS, LLC (6.51%), Regions Bank (6.58%), DRAPER AND KRAMER MORTGAGE CORP. (6.73%) and FIRST STATE MORTGAGE SERVICES, LLC (6.85%).

    Decatur FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    DECATUR, IL MACON 2022 $420,680 $538,650 $651,050 $809,150
    DECATUR, IL MACON 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).