Dothan FHA Loan Rates, Closing Costs & Stats

DOTHAN, AL

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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.

    Dothan's 76 lenders originated 469 FHA loans during 2024. The total origination value was $94,215,000, with an average FHA loan value of $200,885.

    Dothan FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Dothan averaged 0.19% for the week of 2025-07-04, compared to the national average (all FHA variants) of 0% for the same period.

    Dothan's average FHA mortgage closing costs are $6,100.

    The average rate for the prior week (2025-06-27) was 6.58% and one month ago for the week of 2025-05-30, the average rate was 6.85%.

    The average rate one year ago was 7.07%.

    For refis of the same type during the week of 2025-07-04, the average rate was -0.19%.

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

    Dothan 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 Dothan level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    INTERLINC MORTGAGE SERVICES, LLC 52 6.89% $6,364
    QUICKEN LOANS, LLC 35 6.60% $8,985
    MOVEMENT MORTGAGE, LLC 28 6.82% $8,471
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 23 6.61% $7,384
    CROSSCOUNTRY MORTGAGE, LLC 22 6.57% $10,156
    UNITED WHOLESALE MORTGAGE, LLC 17 5.98% $12,015
    UNION HOME MORTGAGE CORP. 13 6.60% $7,994
    Mortgage Research Center, LLC 13 6.68% $5,522
    Ameris Bank 12 6.57% $7,262
    Renasant Bank 10 6.23% $9,440
    ENVOY MORTGAGE, LTD 10 6.70% $8,353
    STOCKTON MORTGAGE CORPORATION 10 6.98% $9,284
    FREEDOM MORTGAGE CORPORATION 9 6.24% $10,302
    LOANDEPOT.COM, LLC 9 6.18% $9,306
    TOWNE MORTGAGE COMPANY 8 6.00% $10,840
    CMG MORTGAGE, INC. 7 7.02% $8,858
    PENNYMAC LOAN SERVICES, LLC 7 6.16% $8,739
    SOUTHWEST FUNDING, LP 7 6.57% $8,588
    BankPlus 7 6.25% $7,758
    Flagstar Bank, FSB 7 6.26% $7,545
    AMERICAN FINANCIAL RESOURCES, INC. 6 6.23% $8,055
    Tyndall Federal Credit Union 5 6.10% $6,182
    AVADIAN 5 6.23% $6,248
    Regions Bank 5 6.45% $8,709
    BROKER SOLUTIONS, INC. 5 7.00% $6,738
    Synovus Bank 4 6.53% $6,751
    PLANET HOME LENDING, LLC 4 6.06% $4,923
    AMERICAN PACIFIC MORTGAGE CORPORATION 4 7.09% $12,586
    NEWREZ LLC 4 6.59% $8,403
    First Federal Bank 4 6.59% $7,295
    Mr. Cooper ( Nationstar Mortgage ) 4 6.72% $9,114
    GUILD MORTGAGE COMPANY 4 6.34% $11,170
    ENDEAVOR CAPITAL, LLC. 3 6.37% $7,615
    DHI MORTGAGE COMPANY, LTD. 3 4.66% $7,277
    Trustmark National Bank 3 6.63% $10,608
    CANOPY MORTGAGE, LLC 3 7.08% $10,013
    LAKEVIEW LOAN SERVICING, LLC 3 6.50% $5,777
    HOMEBRIDGE FINANCIAL SERVICES, INC. 3 6.54% $5,674
    AmeriHome Mortgage Company, LLC 2 6.38% $4,847
    SmartBank 2 6.38% $7,482
    Waterstone Mortgage Corporation 2 7.44% $10,970
    ServisFirst Bank 2 6.13% $8,934
    Equity Prime Mortgage LLC 2 6.44% $9,481
    South State Bank 2 6.81% $9,022
    AMERISAVE MORTGAGE CORPORATION 2 5.63% $15,476
    CARDINAL FINANCIAL 2 6.75% $8,292
    AMERICAN FINANCING CORPORATION 2 6.19% $14,523
    SUCCESS MORTGAGE PARTNERS, INC. 2 6.63% $12,504
    ZILLOW HOME LOANS, LLC 1 7.25% $7,652
    AMERICAN PORTFOLIO MORTGAGE CORPORATION 1 6.63% $5,742
    Arvest Bank 1 6.88% $7,468
    Assurance Financial Group, L.L.C. 1 7.13% $10,193
    BancorpSouth 1 6.25% $9,162
    Barrington Bank & Trust Company, N.A. 1 7.25% $7,814
    BETTER MORTGAGE CORPORATION 1 6.63% $10,550
    Carrington Mortgage Services, LLC 1 6.38% $9,773
    Colony Bank 1 6.13% $7,003
    CONTOUR MORTGAGE CORPORATION 1 5.63% $9,546
    EMM LOANS LLC 1 6.25% $20,119
    FIDELITY BANK 1 6.63% $12,011
    FIRST COMMUNITY MORTGAGE, INC. 1 6.63% $8,592
    GUARANTEED RATE, INC. 1 6.75% $9,230
    Hamilton Mortgage Corporation 1 7.13% $11,331
    HOMESIDE FINANCIAL, LLC 1 6.63% $8,773
    Loan Simple, Inc. 1 7.75% $8,871
    Magnolia Bank 1 6.25% $4,775
    MILEND, INC. 1 7.25% $9,988
    NBH Bank 1 5.25% $5,709
    PHH Mortgage Corporation 1 6.00% $3,948
    Plains Commerce Bank 1 7.25% $9,612
    Prosperity Home Mortgage, LLC 1 7.38% $12,000
    RELIANCE FIRST CAPITAL, LLC 1 7.50% $12,919
    RUOFF MORTGAGE COMPANY, INC. 1 6.13% $6,465
    SouthPoint Bank 1 6.13% $9,590
    Wells Fargo Bank 1 5.88% $4,309
    AMERICAN FINANCIAL NETWORK, INC. 1 7.75% $10,556

    The top Dothan FHA lender as defined by loan originations is INTERLINC MORTGAGE SERVICES, LLC, with 52 FHA loans originated. Their average total fees are $6,364, which is $2,621 lower than the next largest lender, QUICKEN LOANS, LLC.

    The lowest fee Dothan FHA lenders (with over 10 loans originated) are Mortgage Research Center, LLC ($5,522), INTERLINC MORTGAGE SERVICES, LLC ($6,364), Ameris Bank ($7,262), FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($7,384) and UNION HOME MORTGAGE CORP. ($7,994).

    The lowest rate Dothan FHA lenders (with over 10 loans originated) are UNITED WHOLESALE MORTGAGE, LLC (5.98%), Renasant Bank (6.23%), CROSSCOUNTRY MORTGAGE, LLC (6.57%), Ameris Bank (6.57%) and QUICKEN LOANS, LLC (6.60%).

    Dothan FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    DOTHAN, AL GENEVA 2022 $420,680 $538,650 $651,050 $809,150
    DOTHAN, AL HENRY 2022 $420,680 $538,650 $651,050 $809,150
    DOTHAN, AL HOUSTON 2022 $420,680 $538,650 $651,050 $809,150
    DOTHAN, AL GENEVA 2023 $472,030 $604,400 $730,525 $907,900
    DOTHAN, AL HENRY 2023 $472,030 $604,400 $730,525 $907,900
    DOTHAN, AL HOUSTON 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).