Hilton Head Island FHA Loans

HILTON HEAD ISLAND-BLUFFTON, SC

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).