Fargo FHA Loan Rates, Closing Costs & Stats

FARGO, ND-MN

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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.

    Fargo's 51 lenders originated 467 FHA loans during 2023. The total origination value was $120,745,000, with an average FHA loan value of $258,555.

    Fargo FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Fargo averaged 6.46% for the week of 2024-07-19, compared to the national average (all FHA variants) of 6.59% for the same period.

    Fargo's average FHA mortgage closing costs are $7,165.

    The average rate for the prior week (2024-07-12) was 6.41% and one month ago for the week of 2024-06-14, the average rate was 6.56%.

    The average rate one year ago was 6.45%.

    For refis of the same type during the week of 2024-07-19, the average rate was 6.54%.

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

    Fargo 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 Fargo level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    UNITED WHOLESALE MORTGAGE, LLC 49 6.46% $10,176
    VALLEY MORTGAGE, INC. 49 6.29% $6,809
    Gate City Bank 36 6.37% $8,861
    QUICKEN LOANS, LLC 26 6.08% $10,709
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 24 6.57% $9,921
    TOWN AND COUNTRY Credit Union 19 6.09% $11,453
    Nations Lending Corporation 17 6.41% $7,266
    V.I.P. MORTGAGE, INC. 15 6.52% $11,319
    First International Bank & Trust 10 6.20% $7,205
    PRIMARY RESIDENTIAL MORTGAGE, INC. 10 7.13% $10,361
    FIRST COMMUNITY CREDIT UNION 9 6.07% $9,315
    First Western Bank & Trust 9 6.41% $9,988
    Plains Commerce Bank 8 6.36% $9,208
    BROKER SOLUTIONS, INC. 8 6.84% $11,872
    Bell Bank 8 6.34% $9,213
    FREEDOM MORTGAGE CORPORATION 7 6.75% $14,011
    NEWREZ LLC 6 6.83% $9,190
    Western State Bank 5 6.65% $8,802
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 5 6.84% $10,726
    CAPITAL CREDIT UNION 4 5.50% $11,893
    MID AMERICA MORTGAGE, INC. 4 6.72% $4,502
    U.S. Bank 4 6.51% $6,861
    CARDINAL FINANCIAL 4 6.25% $17,117
    MORTGAGE SOLUTIONS OF COLORADO, LLC 3 6.71% $9,074
    PLAZA HOME MORTGAGE, INC. 3 6.92% $7,129
    TOWNE MORTGAGE COMPANY 3 7.12% $11,479
    Flagstar Bank, FSB 3 6.20% $9,006
    LOANDEPOT.COM, LLC 3 6.33% $11,683
    PREMIER MORTGAGE RESOURCES, L.L.C. 3 7.13% $13,834
    AMERISAVE MORTGAGE CORPORATION 3 5.92% $12,523
    MUTUAL OF OMAHA MORTGAGE, INC. 2 7.00% $15,932
    Barrington Bank & Trust Company, N.A. 2 7.00% $7,764
    Bremer Bank 2 6.23% $7,335
    GUARANTEED RATE, INC. 2 6.96% $10,971
    Mr. Cooper ( Nationstar Mortgage ) 2 6.50% $15,139
    Alerus Financial 2 6.49% $5,902
    OCMBC, INC. 2 7.50% $8,738
    PENNYMAC LOAN SERVICES, LLC 2 6.56% $14,464
    Mortgage Research Center, LLC 1 7.63% $4,382
    JPMorgan Chase Bank 1 6.99% $11,631
    Prosperity Home Mortgage, LLC 1 6.49% $9,505
    GUILD MORTGAGE COMPANY 1 6.15% $8,214
    ROYAL UNITED MORTGAGE LLC 1 6.88% $9,531
    Servion, Inc. 1 6.13% $6,742
    EVERETT FINANCIAL, INC. 1 7.13% $8,398
    Equity Prime Mortgage LLC 1 7.25% $8,258
    Citizens Bank 1 7.00% $13,759
    Century Mortgage Company DBA Century Lending Company 1 7.25% $17,761
    BAY EQUITY LLC 1 6.75% $8,307
    Bank of England 1 6.13% $7,612
    AMERICAN FINANCIAL NETWORK, INC. 1 7.50% $17,489

    The top Fargo FHA lender as defined by loan originations is UNITED WHOLESALE MORTGAGE, LLC, with 49 FHA loans originated. Their average total fees are $10,176, which is $3,367 higher than the next largest lender, VALLEY MORTGAGE, INC..

    The lowest fee Fargo FHA lenders (with over 10 loans originated) are VALLEY MORTGAGE, INC. ($6,809), First International Bank & Trust ($7,205), Nations Lending Corporation ($7,266), Gate City Bank ($8,861) and FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($9,921).

    The lowest rate Fargo FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (6.08%), TOWN AND COUNTRY Credit Union (6.09%), First International Bank & Trust (6.20%), VALLEY MORTGAGE, INC. (6.29%) and Gate City Bank (6.37%).

    Fargo FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    FARGO, ND-MN CLAY 2022 $420,680 $538,650 $651,050 $809,150
    FARGO, ND-MN CASS 2022 $420,680 $538,650 $651,050 $809,150
    FARGO, ND-MN CLAY 2023 $472,030 $604,400 $730,525 $907,900
    FARGO, ND-MN CASS 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).