Florence FHA Loan Rates, Closing Costs & Stats

FLORENCE-MUSCLE SHOALS, 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.

    Florence's 88 lenders originated 600 FHA loans during 2024. The total origination value was $125,720,000, with an average FHA loan value of $209,533.

    Florence FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Florence averaged 0% for the week of 2025-06-20, compared to the national average (all FHA variants) of 0% for the same period.

    Florence's average FHA mortgage closing costs are $6,530.

    The average rate for the prior week (2025-06-13) was 6.48% and one month ago for the week of 2025-05-16, the average rate was 6.84%.

    The average rate one year ago was 7%.

    For refis of the same type during the week of 2025-06-20, the average rate was -0.23%.

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

    Florence 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 Florence level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    Trustmark National Bank 69 6.43% $8,122
    Assurance Financial Group, L.L.C. 66 6.59% $8,028
    QUICKEN LOANS, LLC 51 6.48% $9,869
    TOWNE MORTGAGE COMPANY 22 5.83% $9,797
    First Federal Bank, A FSB 22 5.97% $8,534
    Wolfe Financial, Inc 21 6.61% $10,630
    UNITED WHOLESALE MORTGAGE, LLC 20 6.12% $11,367
    MOVEMENT MORTGAGE, LLC 18 6.60% $9,188
    SOUTHWEST FUNDING, LP 17 7.05% $9,798
    Bank Independent 17 6.13% $7,895
    BROKER SOLUTIONS, INC. 13 6.85% $8,559
    PLANET HOME LENDING, LLC 12 6.14% $7,578
    Consumer First Mortgage, Inc. 11 6.51% $8,969
    Flagstar Bank, FSB 11 5.94% $7,054
    American Mortgage & Equity Consultants, Inc. 10 7.18% $9,636
    Renasant Bank 9 6.47% $8,924
    GUILD MORTGAGE COMPANY 9 6.56% $8,759
    LOANDEPOT.COM, LLC 9 6.36% $9,923
    FREEDOM MORTGAGE CORPORATION 9 6.26% $12,595
    FIRST COMMUNITY MORTGAGE, INC. 7 6.19% $7,073
    Regions Bank 6 5.63% $10,747
    PENNYMAC LOAN SERVICES, LLC 5 5.93% $8,082
    CIS Financial Services, Inc. 5 6.70% $7,719
    CROSSCOUNTRY MORTGAGE, LLC 5 6.41% $8,921
    MORTGAGE INVESTORS GROUP, INC. 4 5.90% $8,504
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 4 6.22% $7,543
    STOCKTON MORTGAGE CORPORATION 3 5.92% $11,955
    TJC Mortgage, Inc. 3 6.88% $9,506
    Carrington Mortgage Services, LLC 3 6.04% $13,025
    Prosperity Home Mortgage, LLC 3 5.88% $12,948
    Mortgage Research Center, LLC 3 6.75% $6,030
    Mr. Cooper ( Nationstar Mortgage ) 3 6.58% $14,956
    AMERISAVE MORTGAGE CORPORATION 3 6.46% $11,054
    AmeriHome Mortgage Company, LLC 3 6.63% $5,614
    SeaTrust Mortgage Company 3 6.58% $9,645
    ROYAL UNITED MORTGAGE LLC 2 6.50% $9,595
    FirstBank 2 6.69% $6,557
    GENEVA FINANCIAL, LLC 2 6.63% $9,134
    Hamilton Mortgage Corporation 2 6.94% $10,390
    ISERVE RESIDENTIAL LENDING, LLC 2 6.87% $17,654
    LAKEVIEW LOAN SERVICING, LLC 2 6.69% $7,939
    LEADERONE FINANCIAL CORPORATION 2 7.06% $7,922
    Listerhill Credit Union 2 6.38% $8,919
    NEWREZ LLC 2 6.44% $8,329
    Northpointe Bank 2 5.69% $11,552
    REDSTONE Federal Credit Union 2 6.38% $5,543
    ABSOLUTE HOME MORTGAGE CORPORATION 2 7.13% $8,829
    SouthPoint Bank 2 5.88% $6,651
    Synovus Bank 2 6.00% $8,831
    UNION HOME MORTGAGE CORP. 2 6.75% $6,710
    United Community Bank 2 6.56% $5,626
    VILLAGE CAPITAL MORTGAGE 2 6.56% $7,286
    ZILLOW HOME LOANS, LLC 2 6.69% $7,790
    Pinnacle Bank 1 5.75% $6,808
    Plains Commerce Bank 1 6.38% $6,651
    Ixonia Bank 1 6.63% $10,167
    PLAZA HOME MORTGAGE, INC. 1 7.25% $11,906
    PNC Bank 1 6.25% $8,175
    PRIMELENDING, A PLAINSCAPITAL COMPANY 1 6.13% $9,241
    GUARANTEED RATE, INC. 1 6.25% $8,759
    GUARANTEED RATE AFFINITY, LLC 1 6.00% $6,137
    AMERICAN PACIFIC MORTGAGE CORPORATION 1 6.63% $10,088
    GMFS LLC 1 4.88% $17,095
    RELIANCE FIRST CAPITAL, LLC 1 7.13% $16,430
    First Federal Bank 1 6.00% $13,958
    Victorian Finance, LLC 1 6.50% $15,408
    Equity Prime Mortgage LLC 1 5.88% $16,149
    AMERICAN FINANCIAL NETWORK, INC. 1 7.38% $12,723
    SOUTHPOINT FINANCIAL SERVICES, INC. 1 6.75% $2,004
    South State Bank 1 6.25% $8,477
    ENDEAVOR CAPITAL, LLC. 1 6.25% $9,448
    COMMUNITY MORTGAGE CORPORATION 1 5.99% $7,743
    SUCCESS MORTGAGE PARTNERS, INC. 1 6.50% $19,139
    SUMMIT FUNDING, INC. 1 7.13% $6,524
    SUN WEST MORTGAGE COMPANY, INC. 1 5.73% $7,669
    AMERICAN FINANCING CORPORATION 1 6.88% $6,488
    THE MORTGAGE LINK, INC. 1 6.75% $17,404
    CITYWIDE HOME LOANS, LLC 1 5.75% $14,241
    MILEND, INC. 1 6.87% $10,823
    Magnolia Bank 1 7.25% $9,992
    LOANPAL, LLC 1 5.50% $8,392
    M&T Bank 1 6.00% $10,872
    MUTUAL OF OMAHA MORTGAGE, INC. 1 6.75% $12,841
    Nations Lending Corporation 1 7.25% $15,185
    Barrington Bank & Trust Company, N.A. 1 7.25% $11,935
    Truist 1 6.25% $10,060
    Paramount Residential Mortgage Group, Inc. 1 6.63% $10,678
    JPMorgan Chase Bank 1 6.25% $4,787

    The top Florence FHA lender as defined by loan originations is Trustmark National Bank, with 69 FHA loans originated. Their average total fees are $8,122, which is $94 higher than the next largest lender, Assurance Financial Group, L.L.C..

    The lowest fee Florence FHA lenders (with over 10 loans originated) are Flagstar Bank, FSB ($7,054), PLANET HOME LENDING, LLC ($7,578), Bank Independent ($7,895), Assurance Financial Group, L.L.C. ($8,028) and Trustmark National Bank ($8,122).

    The lowest rate Florence FHA lenders (with over 10 loans originated) are TOWNE MORTGAGE COMPANY (5.83%), Flagstar Bank, FSB (5.94%), First Federal Bank, A FSB (5.97%), UNITED WHOLESALE MORTGAGE, LLC (6.12%) and Bank Independent (6.13%).

    Florence FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    FLORENCE-MUSCLE SHOALS, AL COLBERT 2022 $420,680 $538,650 $651,050 $809,150
    FLORENCE-MUSCLE SHOALS, AL LAUDERDALE 2022 $420,680 $538,650 $651,050 $809,150
    FLORENCE-MUSCLE SHOALS, AL COLBERT 2023 $472,030 $604,400 $730,525 $907,900
    FLORENCE-MUSCLE SHOALS, AL LAUDERDALE 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).