Hilton Head Island FHA Loans

HILTON HEAD ISLAND-BLUFFTON, SC

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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.

    Hilton Head Island's 113 lenders originated 905 FHA loans during 2021. The total origination value was $219,455,000, with an average FHA loan value of $242,492.

    Hilton Head Island FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Hilton Head Island averaged 5.06% for the week of 2022-05-13, compared to the national average (all FHA variants) of 5.361% for the same period.

    The average rate for the prior week (2022-05-06) was 5.09% and one month ago for the week of 2022-04-08, the average rate was 4.76%.

    The average rate one year ago was 2.97%.

    For refis of the same type during the week of 2022-05-13, the average rate was 5.2%.

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

    Hilton Head Island FHA Loan Lenders by Rates & Fees

    The below table looks at the average fees and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Hilton Head Island level.

    Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
    QUICKEN LOANS, LLC 89 2.64% $6,757
    Mortgage Network, Inc. 41 3.20% $8,942
    Gateway First Bank 39 3.43% $6,091
    LAKEVIEW LOAN SERVICING, LLC 38 2.91% $5,108
    MOVEMENT MORTGAGE, LLC 31 3.13% $9,280
    CALIBER HOME LOANS, INC. 29 3.06% $8,514
    FREEDOM MORTGAGE CORPORATION 27 2.89% $5,584
    Mr. Cooper ( Nationstar Mortgage ) 24 3.28% $4,598
    LOANDEPOT.COM, LLC 24 3.12% $9,242
    PENNYMAC LOAN SERVICES, LLC 18 2.94% $5,747
    UNITED WHOLESALE MORTGAGE, LLC 18 2.74% $8,550
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 17 3.40% $8,651
    DHI MORTGAGE COMPANY, LTD. 15 2.76% $8,258
    BROKER SOLUTIONS, INC. 13 3.49% $8,681
    JET HOMELOANS, LLC 13 3.11% $9,137
    Carrington Mortgage Services, LLC 13 3.13% $10,013
    PRIMELENDING, A PLAINSCAPITAL COMPANY 12 3.33% $8,773
    PLAZA HOME MORTGAGE, INC. 12 2.72% $8,996
    FINANCE OF AMERICA MORTGAGE LLC 12 3.48% $8,452
    Lakeview Community Capital, LLC 11 3.02% $4,921
    CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 10 3.06% $9,390
    PULTE MORTGAGE LLC 10 3.43% $5,885
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 9 3.15% $7,841
    AMERISAVE MORTGAGE CORPORATION 8 2.92% $9,243
    VILLAGE CAPITAL & INVESTMENT LLC 8 2.94% $2,813
    GUILD MORTGAGE COMPANY 8 3.45% $9,320
    PRIMARY RESIDENTIAL MORTGAGE, INC. 7 3.29% $7,520
    Paramount Residential Mortgage Group, Inc. 7 3.77% $10,884
    AMERICAN FINANCIAL NETWORK, INC. 7 3.55% $13,053
    VANDERBILT MORTGAGE AND FINANCE, INC. 6 3.54% $8,667
    Ameris Bank 5 2.85% $8,276
    AMERICAN FINANCING CORPORATION 5 3.03% $7,533
    SOUTHERN TRUST MORTGAGE, LLC 5 2.90% $6,053
    South State Bank 5 2.43% $8,182
    AmeriHome Mortgage Company, LLC 5 2.93% $5,006
    EQUITY RESOURCES, INC. 4 3.13% $8,779
    TOWNE MORTGAGE COMPANY 4 3.22% $7,353
    HOME POINT FINANCIAL CORPORATION 4 2.84% $5,786
    EMM LOANS LLC 4 2.94% $7,943
    INSPIRE HOME LOANS INC. 4 3.22% $6,586
    INTERCOASTAL MORTGAGE COMPANY 4 3.13% $8,909
    MUTUAL OF OMAHA MORTGAGE, INC. 3 3.00% $9,724
    AMERICAN FINANCIAL RESOURCES, INC. 3 3.63% $8,752
    SUCCESS MORTGAGE PARTNERS, INC. 3 3.37% $7,521
    First Guaranty Mortgage Corporation 3 2.71% $5,743
    OCEANSIDE MORTGAGE COMPANY 3 2.74% $3,203
    United Community Bank 3 3.04% $8,672
    K. HOVNANIAN AMERICAN MORTGAGE, L.L.C. 3 3.04% $10,157
    NTFN, INC. 3 3.25% $6,191
    Northpointe Bank 3 2.75% $7,169
    GMFS LLC 2 2.88% $6,453
    George Mason Mortgage, LLC 2 2.88% $10,007
    Blue Ridge Bank 2 3.31% $8,130
    The Federal Savings Bank 2 2.81% $12,072
    AMERIFIRST FINANCIAL CORPORATION 2 3.50% $7,728
    GUARANTY HOME MORTGAGE CORPORATION 2 3.13% $8,128
    RELIANCE FIRST CAPITAL, LLC 2 2.88% $11,990
    FBC MORTGAGE, LLC 2 2.94% $8,436
    ABSOLUTE HOME MORTGAGE CORPORATION 2 3.15% $6,422
    ON Q FINANCIAL, INC. 2 4.00% $9,093
    Hometown Lenders, Inc. 2 3.25% $7,873
    InterContinental Capital Group, Inc 2 2.75% $6,905
    KELLER MORTGAGE, LLC 2 2.63% $8,052
    NEWREZ LLC 2 2.63% $4,700
    Nations Lending Corporation 2 3.38% $10,748
    MORIA DEVELOPMENT, INC. 2 3.94% $10,188
    ZILLOW HOME LOANS, LLC 1 2.50% $8,241
    ACADEMY MORTGAGE CORPORATION 1 3.75% $7,070
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 1 3.75% $10,533
    American Security Mortgage Corp. 1 2.75% $6,914
    ANGEL OAK HOME LOANS LLC 1 3.25% $6,080
    Bank of America 1 3.63% $8,168
    BANKSOUTH MORTGAGE COMPANY, LLC 1 3.13% $8,580
    BAYSHORE MORTGAGE FUNDING, LLC 1 3.13% $8,946
    BETTER MORTGAGE CORPORATION 1 2.38% $7,489
    CERTAINTY HOME LOANS, LLC 1 2.99% $7,514
    CHURCHILL MORTGAGE CORPORATION 1 3.00% $9,744
    Citizens Bank 1 3.00% $6,055
    CMG MORTGAGE, INC. 1 2.99% $10,114
    CORNERSTONE HOME LENDING, INC. 1 3.75% $7,640
    CROSSCOUNTRY MORTGAGE, LLC 1 3.63% $16,037
    EVERETT FINANCIAL, INC. 1 3.00% $7,442
    First Federal Bank 1 2.25% $6,879
    Florida Capital Bank 1 2.63% $10,361
    GUARANTEED RATE AFFINITY, LLC 1 2.88% $10,212
    GUARANTEED RATE, INC. 1 3.25% $10,429
    HOMEBRIDGE FINANCIAL SERVICES, INC. 1 2.25% $7,463
    HOMESIDE FINANCIAL, LLC 1 2.38% $9,687
    HOMESTAR FINANCIAL CORPORATION 1 2.88% $7,679
    LOANLEADERS OF AMERICA, INC. 1 2.50% $18,794
    Low VA Rates, LLC 1 2.88% $3,119
    MORTGAGE SOLUTIONS OF COLORADO, LLC 1 3.75% $7,541
    NATIONS DIRECT MORTGAGE, LLC 1 2.38% $15,048
    NATIONWIDE MORTGAGE BANKERS, INC. 1 3.00% $9,760
    PANORAMA MORTGAGE GROUP, LLC 1 3.38% $9,797
    PIKE CREEK MORTGAGE SERVICES, INC. 1 5.00% $3,665
    Pinnacle Bank 1 3.25% $8,786
    Platinum Home Mortgage Corporation 1 3.25% $12,383
    PNC Bank 1 2.50% $9,929
    POLARIS HOME FUNDING CORP. 1 3.50% $10,419
    RAPID MORTGAGE COMPANY 1 3.75% $9,692
    Regions Bank 1 3.13% $7,567
    Renasant Bank 1 2.99% $7,023
    ROYAL UNITED MORTGAGE LLC 1 2.38% $8,385
    RUOFF MORTGAGE COMPANY, INC. 1 2.75% $9,799
    Security Federal Bank 1 3.25% $11,013
    SOUTHEAST MORTGAGE OF GEORGIA, INC. 1 3.13% $9,827
    SOUTHWEST STAGE FUNDING, LLC 1 3.25% $3,636
    STEARNS LENDING, LLC 1 2.63% $12,348
    Sunflower Bank 1 2.99% $14,983
    Truist Bank 1 3.25% $9,520
    UNION HOME MORTGAGE CORP. 1 3.25% $16,035
    1ST SIGNATURE LENDING, LLC 1 3.13% $9,062

    The top Hilton Head Island FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 89 FHA loans originated. Their average total fees are $6,757, which is $2,185 lower than the next largest lender, Mortgage Network, Inc..

    The lowest fee Hilton Head Island FHA lenders (with over 10 loans originated) are Mr. Cooper ( Nationstar Mortgage ) ($4,598), Lakeview Community Capital, LLC ($4,921), LAKEVIEW LOAN SERVICING, LLC ($5,108), FREEDOM MORTGAGE CORPORATION ($5,584) and PENNYMAC LOAN SERVICES, LLC ($5,747).

    The lowest rate Hilton Head Island FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (2.64%), PLAZA HOME MORTGAGE, INC. (2.72%), UNITED WHOLESALE MORTGAGE, LLC (2.74%), DHI MORTGAGE COMPANY, LTD. (2.76%) and FREEDOM MORTGAGE CORPORATION (2.89%).

    Hilton Head Island FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    HILTON HEAD ISLAND-BLUFFTON, SC BEAUFORT 2022 $420,680 $538,650 $651,050 $809,150
    HILTON HEAD ISLAND-BLUFFTON, SC JASPER 2022 $420,680 $538,650 $651,050 $809,150

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Hilton Head Island (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Price (YoY Change) Average Listing Price (YoY) MSA/US Median Price Ratio Active Listings
    2018-01-01 $399,000 (0.0%) $581,691 (1.0%) 1.47 2,755
    2018-02-01 $399,000 (0.0%) $584,599 (2.1%) 1.44 2,879
    2018-03-01 $405,000 (1.5%) $598,595 (4.4%) 1.40 2,959
    2018-04-01 $414,500 (3.9%) $616,723 (5.6%) 1.39 3,091
    2018-05-01 $415,000 (3.8%) $621,190 (5.4%) 1.38 3,099
    2018-06-01 $415,000 (3.2%) $620,233 (3.5%) 1.38 3,083
    2018-07-01 $419,000 (4.8%) $622,850 (3.7%) 1.40 3,074
    2018-08-01 $422,000 (5.5%) $631,946 (6.3%) 1.41 2,917
    2018-09-01 $415,000 (1.5%) $618,357 (4.2%) 1.39 3,084
    2018-10-01 $422,250 (4.4%) $632,463 (7.7%) 1.41 3,086
    2018-11-01 $419,022 (5.0%) $630,851 (8.8%) 1.40 3,108
    2018-12-01 $420,000 (5.3%) $632,971 (9.4%) 1.44 3,011
    2019-01-01 $417,000 (4.5%) $626,067 (7.6%) 1.44 2,989
    2019-02-01 $418,000 (4.8%) $624,592 (6.8%) 1.40 3,018
    2019-03-01 $419,286 (3.5%) $633,436 (5.8%) 1.37 3,103
    2019-04-01 $425,000 (2.5%) $648,896 (5.2%) 1.34 3,185
    2019-05-01 $433,063 (4.4%) $661,441 (6.5%) 1.33 3,180
    2019-06-01 $439,000 (5.8%) $666,534 (7.5%) 1.35 3,052
    2019-07-01 $427,000 (1.9%) $646,601 (3.8%) 1.33 3,047
    2019-08-01 $425,000 (0.7%) $647,501 (2.5%) 1.34 2,992
    2019-09-01 $424,500 (2.3%) $649,125 (5.0%) 1.35 2,918
    2019-10-01 $430,500 (2.0%) $656,575 (3.8%) 1.37 2,915
    2019-11-01 $429,900 (2.6%) $665,617 (5.5%) 1.39 2,841
    2019-12-01 $425,000 (1.2%) $654,211 (3.4%) 1.42 2,747
    2020-01-01 $422,450 (1.3%) $644,956 (3.0%) 1.41 2,649
    2020-02-01 $429,900 (2.9%) $656,927 (5.2%) 1.39 2,653
    2020-03-01 $429,900 (2.5%) $660,691 (4.3%) 1.34 2,757
    2020-04-01 $422,500 (-0.6%) $651,321 (0.4%) 1.32 2,803
    2020-05-01 $420,000 (-3.0%) $650,764 (-1.6%) 1.27 2,711
    2020-06-01 $424,325 (-3.3%) $667,881 (0.2%) 1.24 2,393
    2020-07-01 $431,950 (1.2%) $690,709 (6.8%) 1.24 2,125
    2020-08-01 $425,000 (0.0%) $704,857 (8.9%) 1.21 1,939
    2020-09-01 $403,850 (-4.9%) $708,808 (9.2%) 1.15 1,755
    2020-10-01 $399,900 (-7.1%) $725,057 (10.4%) 1.14 1,541
    2020-11-01 $403,593 (-6.1%) $753,286 (13.2%) 1.16 1,398
    2020-12-01 $415,750 (-2.2%) $769,566 (17.6%) 1.22 1,262
    2021-01-01 $435,000 (3.0%) $789,228 (22.4%) 1.28 1,050
    2021-02-01 $437,000 (1.7%) $815,442 (24.1%) 1.26 851
    2021-03-01 $458,948 (6.8%) $814,924 (23.3%) 1.29 732
    2021-04-01 $447,000 (5.8%) $803,608 (23.4%) 1.20 662
    2021-05-01 $462,500 (10.1%) $786,924 (20.9%) 1.22 630
    2021-06-01 $477,000 (12.4%) $804,575 (20.5%) 1.24 693
    2021-07-01 $496,445 (14.9%) $815,714 (18.1%) 1.29 733
    2021-08-01 $517,500 (21.8%) $822,391 (16.7%) 1.36 761
    2021-09-01 $499,450 (23.7%) $810,387 (14.3%) 1.31 782
    2021-10-01 $523,000 (30.8%) $851,356 (17.4%) 1.38 750
    2021-11-01 $524,000 (29.8%) $844,972 (12.2%) 1.38 659
    2021-12-01 $505,000 (21.5%) $856,856 (11.3%) 1.35 582
    2022-01-01 $500,000 (14.9%) $874,590 (10.8%) 1.33 464
    2022-02-01 $542,000 (24.0%) $897,115 (10.0%) 1.38 423
    2022-03-01 $552,000 (20.3%) $936,118 (14.9%) 1.36 403
    2022-04-01 $589,900 (32.0%) $976,009 (21.5%) 1.39 495
    Hilton Head Island's median listing price for 2022-04-01 was $589,900, a difference of $142,900 (32.0%) versus the prior year and $37,900 versus the prior month.

    Hilton Head Island's median listing price comes in at 139% of the national average.

    Hilton Head Island's average listing price for 2022-04-01 was $976,009, a difference of $172,401 (21.5%) versus the prior year and $39,891 versus the prior month.

    For the 2022-04-01 period, Hilton Head Island had 495 MLS listings, a difference of 92 listings (23%) versus the prior month and -167 listings (-25%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Hilton Head Island (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 125 days 2,156 sqft
    2018-02-01 120 days 2,176 sqft
    2018-03-01 107 days 2,164 sqft
    2018-04-01 85 days 2,150 sqft
    2018-05-01 90 days 2,150 sqft
    2018-06-01 92 days 2,128 sqft
    2018-07-01 100 days 2,115 sqft
    2018-08-01 102 days 2,153 sqft
    2018-09-01 108 days 2,120 sqft
    2018-10-01 104 days 2,166 sqft
    2018-11-01 100 days 2,154 sqft
    2018-12-01 105 days 2,158 sqft
    2019-01-01 108 days 2,131 sqft
    2019-02-01 112 days 2,133 sqft
    2019-03-01 104 days 2,151 sqft
    2019-04-01 87 days 2,169 sqft
    2019-05-01 92 days 2,203 sqft
    2019-06-01 95 days 2,225 sqft
    2019-07-01 108 days 2,179 sqft
    2019-08-01 113 days 2,171 sqft
    2019-09-01 118 days 2,168 sqft
    2019-10-01 114 days 2,188 sqft
    2019-11-01 112 days 2,200 sqft
    2019-12-01 116 days 2,187 sqft
    2020-01-01 118 days 2,163 sqft
    2020-02-01 119 days 2,200 sqft
    2020-03-01 106 days 2,209 sqft
    2020-04-01 97 days 2,175 sqft
    2020-05-01 105 days 2,134 sqft
    2020-06-01 109 days 2,150 sqft
    2020-07-01 111 days 2,200 sqft
    2020-08-01 81 days 2,200 sqft
    2020-09-01 72 days 2,160 sqft
    2020-10-01 71 days 2,171 sqft
    2020-11-01 69 days 2,132 sqft
    2020-12-01 73 days 2,158 sqft
    2021-01-01 80 days 2,120 sqft
    2021-02-01 68 days 2,061 sqft
    2021-03-01 51 days 2,105 sqft
    2021-04-01 47 days 2,046 sqft
    2021-05-01 44 days 2,010 sqft
    2021-06-01 39 days 1,964 sqft
    2021-07-01 44 days 1,975 sqft
    2021-08-01 47 days 2,010 sqft
    2021-09-01 49 days 1,974 sqft
    2021-10-01 51 days 2,040 sqft
    2021-11-01 53 days 1,981 sqft
    2021-12-01 55 days 1,991 sqft
    2022-01-01 62 days 1,998 sqft
    2022-02-01 44 days 2,016 sqft
    2022-03-01 36 days 2,110 sqft
    2022-04-01 34 days 2,115 sqft
    Hilton Head Island's median listing age (time on market) for 2022-04-01 was 34 days. This is -28% shorter than the same period one year ago.

    Hilton Head Island's median square footage for active listings during the 2022-04-01 period was 2,115 sqft. One year prior, the average listing was 2,046 sqft.

    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).