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 69 lenders originated 442 FHA loans during 2023. The total origination value was $82,560,000, with an average FHA loan value of $186,787.

    Dothan FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Dothan averaged 6.6% for the week of 2024-11-08, compared to the national average (all FHA variants) of 6.425% for the same period.

    Dothan's average FHA mortgage closing costs are $5,787.

    The average rate for the prior week (2024-11-01) was 6.37% and one month ago for the week of 2024-10-04, the average rate was 5.99%.

    The average rate one year ago was 7.14%.

    For refis of the same type during the week of 2024-11-08, the average rate was 6.37%.

    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 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    QUICKEN LOANS, LLC 51 6.32% $8,322
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 42 6.87% $7,395
    INTERLINC MORTGAGE SERVICES, LLC 39 7.05% $6,127
    Ameris Bank 29 6.37% $8,204
    ENVOY MORTGAGE, LTD 25 6.61% $8,031
    CROSSCOUNTRY MORTGAGE, LLC 25 6.86% $10,022
    Renasant Bank 23 6.32% $7,249
    UNITED WHOLESALE MORTGAGE, LLC 14 6.66% $8,869
    First Federal Bank 12 6.75% $5,981
    UNION HOME MORTGAGE CORP. 9 6.92% $8,380
    PRIMELENDING, A PLAINSCAPITAL COMPANY 8 7.02% $7,028
    BROKER SOLUTIONS, INC. 7 6.79% $9,526
    Regions Bank 7 6.70% $7,723
    Synovus Bank 7 6.36% $6,348
    AMERICAN FINANCIAL RESOURCES, INC. 7 7.04% $6,887
    PENNYMAC LOAN SERVICES, LLC 7 6.27% $8,922
    Mortgage Research Center, LLC 7 6.82% $6,005
    FirstBank 6 6.46% $8,482
    FREEDOM MORTGAGE CORPORATION 5 7.20% $10,608
    Mr. Cooper ( Nationstar Mortgage ) 4 5.94% $10,968
    STOCKTON MORTGAGE CORPORATION 4 7.47% $9,723
    Tyndall Federal Credit Union 3 6.79% $6,007
    Flagstar Bank, FSB 3 5.93% $11,501
    CARDINAL FINANCIAL 3 6.96% $7,387
    PLANET HOME LENDING, LLC 3 4.88% $4,371
    CMG MORTGAGE, INC. 3 6.83% $14,459
    Plains Commerce Bank 3 6.38% $7,953
    MILEND, INC. 3 7.00% $8,702
    MOVEMENT MORTGAGE, LLC 3 7.33% $7,331
    AVADIAN 3 6.63% $5,780
    Ixonia Bank 2 7.00% $8,907
    JPMorgan Chase Bank 2 7.06% $5,091
    Barrington Bank & Trust Company, N.A. 2 6.25% $6,739
    TOWNE MORTGAGE COMPANY 2 5.50% $6,038
    LOANDEPOT.COM, LLC 2 6.62% $8,038
    MORTGAGE INVESTORS GROUP, INC. 2 7.06% $8,795
    Carrington Mortgage Services, LLC 2 6.94% $7,501
    Wells Fargo Bank 2 6.44% $10,385
    HOMESTAR FINANCIAL CORPORATION 2 5.63% $9,178
    CHURCHILL MORTGAGE CORPORATION 2 7.19% $6,226
    NEWREZ LLC 2 6.69% $4,389
    Nations Lending Corporation 1 6.63% $11,116
    AMERISAVE MORTGAGE CORPORATION 1 5.63% $8,162
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 6.13% $8,860
    Capital City Home Loans, LLC 1 6.63% $11,791
    Colonial Savings, F.A. 1 6.50% $12,087
    DHI MORTGAGE COMPANY, LTD. 1 5.50% $7,052
    Equity Prime Mortgage LLC 1 8.25% $13,826
    GMFS LLC 1 6.25% $6,402
    GUARANTEED RATE, INC. 1 4.99% $9,476
    GUILD MORTGAGE COMPANY 1 6.63% $7,083
    Hamilton Mortgage Corporation 1 6.50% $8,753
    INTERCAP LENDING INC. 1 5.75% $11,146
    LAKEVIEW LOAN SERVICING, LLC 1 7.13% $7,216
    LOANPAL, LLC 1 5.25% $15,192
    MIDLAND MORTGAGE CORPORATION 1 6.25% $5,963
    MUTUAL OF OMAHA MORTGAGE, INC. 1 6.00% $10,448
    AMERICAN FINANCIAL NETWORK, INC. 1 7.13% $11,768
    NATIONWIDE MORTGAGE BANKERS, INC. 1 6.63% $17,191
    NFM, INC. 1 6.63% $9,302
    PHH Mortgage Corporation 1 7.49% $8,555
    Prosperity Home Mortgage, LLC 1 7.63% $11,520
    ServisFirst Bank 1 5.75% $13,007
    Stride Bank 1 6.25% $8,616
    THRIVE MORTGAGE, LLC 1 7.63% $13,250
    Trustmark National Bank 1 6.63% $9,160
    University Bank 1 7.63% $8,772
    VILLAGE CAPITAL MORTGAGE 1 7.25% $3,356
    ZILLOW HOME LOANS, LLC 1 7.75% $8,737

    The top Dothan FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 51 FHA loans originated. Their average total fees are $8,322, which is $927 higher than the next largest lender, FAIRWAY INDEPENDENT MORTGAGE CORPORATION.

    The lowest fee Dothan FHA lenders (with over 10 loans originated) are First Federal Bank ($5,981), INTERLINC MORTGAGE SERVICES, LLC ($6,127), Renasant Bank ($7,249), FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($7,395) and ENVOY MORTGAGE, LTD ($8,031).

    The lowest rate Dothan FHA lenders (with over 10 loans originated) are Renasant Bank (6.32%), QUICKEN LOANS, LLC (6.32%), Ameris Bank (6.37%), ENVOY MORTGAGE, LTD (6.61%) and UNITED WHOLESALE MORTGAGE, LLC (6.66%).

    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).