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 79 lenders originated 546 FHA loans during 2023. The total origination value was $104,770,000, with an average FHA loan value of $191,886.

    Florence FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Florence averaged 6.56% for the week of 2024-07-19, compared to the national average (all FHA variants) of 6.59% for the same period.

    Florence's average FHA mortgage closing costs are $6,095.

    The average rate for the prior week (2024-07-12) was 6.51% and one month ago for the week of 2024-06-14, the average rate was 6.56%.

    The average rate one year ago was 6.75%.

    For refis of the same type during the week of 2024-07-19, the average rate was 6.52%.

    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 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    Trustmark National Bank 69 6.47% $7,301
    QUICKEN LOANS, LLC 63 6.20% $8,510
    Assurance Financial Group, L.L.C. 47 6.81% $7,908
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 34 6.18% $6,957
    First Federal Bank, A FSB 26 6.28% $8,326
    UNITED WHOLESALE MORTGAGE, LLC 19 6.42% $9,966
    Wolfe Financial, Inc 17 6.74% $9,501
    Consumer First Mortgage, Inc. 17 6.82% $8,043
    American Mortgage & Equity Consultants, Inc. 16 7.02% $9,515
    Regions Bank 14 6.07% $7,818
    MOVEMENT MORTGAGE, LLC 10 6.34% $7,665
    AMERISAVE MORTGAGE CORPORATION 10 6.05% $10,472
    PENNYMAC LOAN SERVICES, LLC 10 5.94% $9,090
    LEADERONE FINANCIAL CORPORATION 9 6.44% $8,061
    BROKER SOLUTIONS, INC. 8 6.59% $9,506
    Bank Independent 7 5.89% $8,851
    LOANDEPOT.COM, LLC 7 6.39% $10,767
    Mr. Cooper ( Nationstar Mortgage ) 6 6.38% $10,539
    FREEDOM MORTGAGE CORPORATION 6 6.75% $12,801
    CARDINAL FINANCIAL 6 6.08% $5,786
    U.S. Bank 5 5.80% $9,061
    CIS Financial Services, Inc. 5 6.70% $7,869
    United Community Bank 5 6.30% $8,526
    Carrington Mortgage Services, LLC 5 6.60% $9,340
    ABSOLUTE HOME MORTGAGE CORPORATION 4 7.63% $7,850
    GUILD MORTGAGE COMPANY 4 6.59% $9,997
    FIRST COMMUNITY MORTGAGE, INC. 4 5.78% $6,603
    CROSSCOUNTRY MORTGAGE, LLC 4 6.70% $9,297
    AMERICAN PACIFIC MORTGAGE CORPORATION 4 7.25% $7,962
    NEWREZ LLC 3 6.71% $8,049
    MILEND, INC. 3 7.13% $12,789
    Plains Commerce Bank 3 5.88% $9,794
    Equity Prime Mortgage LLC 3 7.42% $12,415
    GMFS LLC 3 6.88% $6,773
    HOMESIDE FINANCIAL, LLC 3 6.25% $13,070
    ISERVE RESIDENTIAL LENDING, LLC 3 6.75% $18,108
    Hamilton Mortgage Corporation 2 7.63% $8,454
    PLANET HOME LENDING, LLC 2 6.00% $7,571
    Flagstar Bank, FSB 2 7.00% $6,979
    CMG MORTGAGE, INC. 2 6.69% $9,842
    LAKEVIEW LOAN SERVICING, LLC 2 6.25% $9,196
    SouthPoint Bank 2 7.38% $5,042
    PRIMELENDING, A PLAINSCAPITAL COMPANY 2 7.00% $10,650
    UNION HOME MORTGAGE CORP. 2 6.94% $6,386
    GENEVA FINANCIAL, LLC 2 6.94% $11,987
    TJC Mortgage, Inc. 1 7.13% $14,883
    AMERICAN FINANCING CORPORATION 1 6.75% $8,040
    AMERICAN PORTFOLIO MORTGAGE CORPORATION 1 7.63% $16,635
    BancorpSouth 1 6.13% $4,654
    Bank of England 1 6.50% $7,560
    Bank of Tennessee 1 5.50% $9,363
    CASTLE & COOKE MORTGAGE, LLC 1 6.75% $9,418
    CB&S Bank, Inc. 1 6.25% $11,945
    COMMUNITY MORTGAGE CORPORATION 1 6.75% $10,085
    CONTOUR MORTGAGE CORPORATION 1 5.63% $10,882
    Cornerstone First Mortgage, Inc 1 5.75% $12,864
    EMM LOANS LLC 1 6.50% $13,050
    First Federal Bank 1 7.13% $7,119
    GUARANTEED RATE, INC. 1 6.25% $6,898
    GUARANTY HOME MORTGAGE CORPORATION 1 6.13% $6,649
    HOMESTAR FINANCIAL CORPORATION 1 6.25% $5,318
    LOANPAL, LLC 1 5.63% $12,610
    Magnolia Bank 1 7.13% $9,020
    MORIA DEVELOPMENT, INC. 1 7.13% $12,317
    MUTUAL OF OMAHA MORTGAGE, INC. 1 6.25% $8,711
    Paramount Residential Mortgage Group, Inc. 1 6.88% $9,138
    PRIMARY RESIDENTIAL MORTGAGE, INC. 1 5.63% $13,871
    REDSTONE Federal Credit Union 1 5.50% $5,879
    Renasant Bank 1 5.75% $10,667
    ROYAL UNITED MORTGAGE LLC 1 6.38% $7,117
    SOUTHPOINT FINANCIAL SERVICES, INC. 1 5.88% $11,394
    SOVEREIGN LENDING GROUP INCORPORATED 1 6.25% $11,309
    SUMMIT FUNDING, INC. 1 7.13% $11,300
    SUN WEST MORTGAGE COMPANY, INC. 1 7.25% $11,909
    Synovus Bank 1 6.38% $7,533
    THE MORTGAGE LINK, INC. 1 7.13% $12,954
    TOP FLITE FINANCIAL, INC. 1 7.00% $5,592
    TOWNE MORTGAGE COMPANY 1 5.75% $10,195
    Wells Fargo Bank 1 6.50% $6,861

    The top Florence FHA lender as defined by loan originations is Trustmark National Bank, with 69 FHA loans originated. Their average total fees are $7,301, which is $1,209 lower than the next largest lender, QUICKEN LOANS, LLC.

    The lowest fee Florence FHA lenders (with over 10 loans originated) are FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($6,957), Trustmark National Bank ($7,301), MOVEMENT MORTGAGE, LLC ($7,665), Regions Bank ($7,818) and Assurance Financial Group, L.L.C. ($7,908).

    The lowest rate Florence FHA lenders (with over 10 loans originated) are PENNYMAC LOAN SERVICES, LLC (5.94%), AMERISAVE MORTGAGE CORPORATION (6.05%), Regions Bank (6.07%), FAIRWAY INDEPENDENT MORTGAGE CORPORATION (6.18%) and QUICKEN LOANS, LLC (6.20%).

    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).