Fergus Falls FHA Loan Rates, Closing Costs & Stats

Fergus Falls, 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.

    Fergus Falls's 30 lenders originated 73 FHA loans during 2023. The total origination value was $15,185,000, with an average FHA loan value of $208,014.

    Fergus Falls FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Fergus Falls averaged 6.31% for the week of 2024-11-08, compared to the national average (all FHA variants) of 6.425% for the same period.

    Fergus Falls's average FHA mortgage closing costs are $6,783.

    The average rate for the prior week (2024-11-01) was 6.48% and one month ago for the week of 2024-10-04, the average rate was 6.2%.

    The average rate one year ago was 7.55%.

    For refis of the same type during the week of 2024-11-08, the average rate was 6.63%.

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

    Fergus Falls 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 Fergus Falls level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    UNITED WHOLESALE MORTGAGE, LLC 13 6.14% $10,508
    QUICKEN LOANS, LLC 12 6.09% $12,439
    Gate City Bank 5 6.08% $8,750
    Tradition Mortgage, LLC 4 7.00% $7,642
    Bremer Bank 3 6.71% $6,227
    Plains Commerce Bank 3 6.54% $4,731
    PRIMARY RESIDENTIAL MORTGAGE, INC. 3 6.92% $14,289
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 2 6.88% $8,321
    PRIMELENDING, A PLAINSCAPITAL COMPANY 2 7.37% $6,466
    Nations Lending Corporation 2 5.88% $9,057
    FREEDOM MORTGAGE CORPORATION 2 7.00% $9,517
    LAKEVIEW LOAN SERVICING, LLC 1 5.75% $7,704
    LOANDEPOT.COM, LLC 1 6.38% $8,339
    Mortgage Research Center, LLC 1 7.13% $5,016
    NEWREZ LLC 1 6.75% $12,984
    PENNYMAC LOAN SERVICES, LLC 1 6.75% $13,604
    PREMIER MORTGAGE RESOURCES, L.L.C. 1 6.75% $13,763
    Reliabank Dakota 1 6.00% $7,341
    TOWN AND COUNTRY Credit Union 1 6.75% $7,491
    U.S. Bank 1 7.25% $7,093
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 6.25% $4,751
    Bell Bank 1 5.63% $5,872
    CARDINAL FINANCIAL 1 7.25% $16,519
    Century Mortgage Company DBA Century Lending Company 1 6.75% $6,063
    EMM LOANS LLC 1 6.25% $11,804
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 1 6.50% $6,892
    FIRST COMMUNITY CREDIT UNION 1 6.63% $7,319
    First International Bank & Trust 1 7.63% $6,378
    First Western Bank & Trust 1 6.75% $4,910
    HOMEOWNERS FINANCIAL GROUP USA, LLC 1 6.25% $6,964

    The top Fergus Falls FHA lender as defined by loan originations is UNITED WHOLESALE MORTGAGE, LLC, with 13 FHA loans originated. Their average total fees are $10,508, which is $1,931 lower than the next largest lender, QUICKEN LOANS, LLC.

    The lowest fee Fergus Falls FHA lenders (with over 10 loans originated) are UNITED WHOLESALE MORTGAGE, LLC ($10,508), QUICKEN LOANS, LLC ($12,439), .

    The lowest rate Fergus Falls FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (6.09%), UNITED WHOLESALE MORTGAGE, LLC (6.14%), .

    Fergus Falls FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    FERGUS FALLS, MN OTTER TAIL 2022 $420,680 $538,650 $651,050 $809,150
    FERGUS FALLS, MN OTTER TAIL 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).