Fort Payne FHA Loan Rates, Closing Costs & Stats

Fort Payne, 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.

    Fort Payne's 42 lenders originated 182 FHA loans during 2023. The total origination value was $34,050,000, with an average FHA loan value of $187,088.

    Fort Payne FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Fort Payne averaged 6.94% for the week of 2024-04-12, compared to the national average (all FHA variants) of 6.739% for the same period.

    Fort Payne's average FHA mortgage closing costs are $6,210.

    The average rate for the prior week (2024-04-05) was 6.66% and one month ago for the week of 2024-03-08, the average rate was 6.5%.

    The average rate one year ago was 6.03%.

    For refis of the same type during the week of 2024-04-12, the average rate was 6.54%.

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

    Fort Payne 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 Fort Payne level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 31 6.79% $5,990
    QUICKEN LOANS, LLC 21 6.55% $8,520
    UNITED WHOLESALE MORTGAGE, LLC 15 6.49% $8,519
    Victorian Finance, LLC 12 6.90% $8,884
    CROSSCOUNTRY MORTGAGE, LLC 10 6.88% $9,113
    Renasant Bank 6 6.37% $6,185
    TJC Mortgage, Inc. 6 6.73% $8,742
    GUARANTEED RATE, INC. 5 5.97% $12,049
    AMERISAVE MORTGAGE CORPORATION 4 6.16% $9,112
    Regions Bank 4 6.28% $7,547
    HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 4 6.88% $10,656
    CARDINAL FINANCIAL 4 5.34% $7,969
    LOANDEPOT.COM, LLC 4 6.97% $7,248
    FirstBank 4 6.28% $9,107
    Mr. Cooper ( Nationstar Mortgage ) 3 6.33% $11,214
    SUMMIT FUNDING, INC. 3 7.25% $9,360
    First Federal Bank, A FSB 3 5.96% $8,210
    PENNYMAC LOAN SERVICES, LLC 3 5.75% $9,322
    GUILD MORTGAGE COMPANY 2 6.38% $8,086
    FREEDOM MORTGAGE CORPORATION 2 6.75% $11,220
    SouthPoint Bank 2 6.25% $5,756
    ACOPIA, LLC 2 6.56% $7,219
    LAKEVIEW LOAN SERVICING, LLC 2 6.50% $10,470
    LEADERONE FINANCIAL CORPORATION 2 6.63% $6,688
    Wells Fargo Bank 1 6.63% $5,030
    Carrington Mortgage Services, LLC 1 7.63% $11,405
    Century Mortgage Company DBA Century Lending Company 1 4.88% $11,877
    Consumer First Mortgage, Inc. 1 6.25% $7,176
    DAS Acquisition Company, LLC 1 7.00% $8,399
    FIRST COMMUNITY MORTGAGE, INC. 1 5.50% $6,275
    GMFS LLC 1 6.13% $12,293
    HOMESTAR FINANCIAL CORPORATION 1 7.25% $4,272
    MIDLAND MORTGAGE CORPORATION 1 6.75% $7,701
    MILEND, INC. 1 6.50% $11,805
    MORTGAGE INVESTORS GROUP, INC. 1 6.63% $7,000
    Mortgage Research Center, LLC 1 6.63% $3,225
    MOVEMENT MORTGAGE, LLC 1 7.75% $8,185
    PLANET HOME LENDING, LLC 1 6.75% $11,586
    PLAZA HOME MORTGAGE, INC. 1 7.00% $15,271
    STOCKTON MORTGAGE CORPORATION 1 6.75% $14,928
    THRIVE MORTGAGE, LLC 1 5.88% $8,838
    United Community Bank 1 6.00% $8,205

    The top Fort Payne FHA lender as defined by loan originations is FAIRWAY INDEPENDENT MORTGAGE CORPORATION, with 31 FHA loans originated. Their average total fees are $5,990, which is $2,530 lower than the next largest lender, QUICKEN LOANS, LLC.

    The lowest fee Fort Payne FHA lenders (with over 10 loans originated) are FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($5,990), UNITED WHOLESALE MORTGAGE, LLC ($8,519), QUICKEN LOANS, LLC ($8,520), Victorian Finance, LLC ($8,884) and CROSSCOUNTRY MORTGAGE, LLC ($9,113).

    The lowest rate Fort Payne FHA lenders (with over 10 loans originated) are UNITED WHOLESALE MORTGAGE, LLC (6.49%), QUICKEN LOANS, LLC (6.55%), FAIRWAY INDEPENDENT MORTGAGE CORPORATION (6.79%), CROSSCOUNTRY MORTGAGE, LLC (6.88%) and Victorian Finance, LLC (6.90%).

    Fort Payne FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    FORT PAYNE, AL DEKALB 2022 $420,680 $538,650 $651,050 $809,150
    FORT PAYNE, AL DEKALB 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).