Hilton Head Island FHA Loan Rates, Closing Costs & Stats

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 91 lenders originated 560 FHA loans during 2024. The total origination value was $185,280,000, with an average FHA loan value of $330,857.

Hilton Head Island FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Hilton Head Island averaged 0.04% for the week of 2025-06-20, compared to the national average (all FHA variants) of 0% for the same period.

Hilton Head Island's average FHA mortgage closing costs are $9,077.

The average rate for the prior week (2025-06-13) was 6.72% and one month ago for the week of 2025-05-16, the average rate was 6.68%.

The average rate one year ago was 6.73%.

For refis of the same type during the week of 2025-06-20, the average rate was -0.5%.

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/closing costs 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 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
UNITED WHOLESALE MORTGAGE, LLC 49 6.12% $15,155
DHI MORTGAGE COMPANY, LTD. 39 5.27% $9,086
QUICKEN LOANS, LLC 34 6.25% $14,730
MOVEMENT MORTGAGE, LLC 21 6.81% $12,375
VANDERBILT MORTGAGE AND FINANCE, INC. 15 5.82% $15,191
UNION HOME MORTGAGE CORP. 14 6.68% $13,592
Gateway First Bank 14 6.44% $12,202
FREEDOM MORTGAGE CORPORATION 12 6.43% $14,791
PENNYMAC LOAN SERVICES, LLC 12 5.97% $11,426
EAGLE HOME MORTGAGE, LLC 11 6.10% $15,311
JET HOMELOANS, LLC 10 5.88% $13,213
ARK-LA-TEX FINANCIAL SERVICES, LLC. 10 6.56% $11,374
T2 FINANCIAL LLC 10 6.61% $13,071
Ameris Bank 9 6.25% $14,416
GUILD MORTGAGE COMPANY 8 6.33% $12,311
SUN WEST MORTGAGE COMPANY, INC. 8 5.92% $11,610
CANOPY MORTGAGE, LLC 8 5.91% $18,603
GUARANTEED RATE, INC. 8 6.55% $13,237
NEWREZ LLC 7 6.32% $11,147
MUTUAL OF OMAHA MORTGAGE, INC. 7 6.46% $16,844
CMG MORTGAGE, INC. 7 6.39% $15,765
PULTE MORTGAGE LLC 7 5.25% $9,601
HOMESIDE FINANCIAL, LLC 6 6.19% $14,221
EMM LOANS LLC 6 6.27% $14,664
CROSSCOUNTRY MORTGAGE, LLC 6 6.44% $11,747
FIRST CONTINENTAL MORTGAGE, LTD. 6 6.13% $6,780
South State Bank 5 6.23% $12,337
K. HOVNANIAN AMERICAN MORTGAGE, L.L.C. 5 6.25% $15,764
BROKER SOLUTIONS, INC. 5 6.50% $12,428
ABSOLUTE HOME MORTGAGE CORPORATION 5 6.63% $14,584
AMERISAVE MORTGAGE CORPORATION 4 6.22% $16,611
First Heritage Mortgage, LLC 4 5.28% $11,881
MORTGAGE EQUITY PARTNERS LLC 3 6.54% $16,395
Carrington Mortgage Services, LLC 3 6.96% $16,792
Equity Prime Mortgage LLC 3 7.00% $21,744
EQUITY RESOURCES, INC. 3 6.67% $17,156
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 3 6.38% $12,596
FIRST COMMUNITY MORTGAGE, INC. 3 6.38% $13,051
LOANDEPOT.COM, LLC 3 6.62% $14,425
MILEND, INC. 3 6.25% $22,016
Mr. Cooper ( Nationstar Mortgage ) 3 6.54% $16,801
Paramount Residential Mortgage Group, Inc. 3 6.54% $13,130
PLAZA HOME MORTGAGE, INC. 3 6.21% $15,212
VILLAGE CAPITAL MORTGAGE 3 6.50% $5,554
East Coast Capital Corp. 2 7.00% $12,116
LAKEVIEW LOAN SERVICING, LLC 2 6.00% $10,035
LOANPAL, LLC 2 5.50% $11,326
Magnolia Bank 2 6.50% $15,622
AMERICAN FINANCING CORPORATION 2 5.18% $19,740
NATION ONE MORTGAGE CORPORATION 2 6.75% $19,157
Nations Lending Corporation 2 5.63% $15,142
PLANET HOME LENDING, LLC 2 6.62% $12,478
Prosperity Home Mortgage, LLC 2 6.87% $12,219
RELIANCE FIRST CAPITAL, LLC 2 7.06% $14,107
TOTAL MORTGAGE SERVICES, LLC 2 6.81% $19,974
FBC MORTGAGE, LLC 2 4.99% $9,547
HOMEBRIDGE FINANCIAL SERVICES, INC. 2 6.12% $17,870
Mortgage Research Center, LLC 1 6.63% $9,418
CAPITAL CENTER, L.L.C. 1 6.25% $7,581
Texana Bank 1 6.25% $12,479
CALCON MUTUAL MORTGAGE LLC 1 6.13% $18,674
The Loan Store, Inc. 1 6.63% $18,194
First-Citizens Bank & Trust Company 1 5.63% $13,446
BAYCOAST MORTGAGE COMPANY, LLC 1 6.13% $8,002
AMERICAN FINANCIAL RESOURCES, INC. 1 6.25% $27,264
Barrington Bank & Trust Company, N.A. 1 6.75% $7,269
PHH Mortgage Corporation 1 5.99% $17,452
Plains Commerce Bank 1 5.25% $16,197
Flagstar Bank, FSB 1 6.52% $7,789
Wells Fargo Bank 1 6.63% $14,493
Presidential Bank, FSB 1 5.88% $15,121
PRIMELENDING, A PLAINSCAPITAL COMPANY 1 6.25% $11,184
GENEVA FINANCIAL, LLC 1 6.63% $17,269
BANKSOUTH MORTGAGE COMPANY, LLC 1 6.25% $15,854
Bank of England 1 6.63% $9,761
GMFS LLC 1 6.63% $9,543
Renasant Bank 1 6.75% $9,634
SeaTrust Mortgage Company 1 6.13% $13,280
Bank of America 1 5.38% $11,346
INTERCOASTAL MORTGAGE COMPANY 1 5.75% $12,983
Century Mortgage Company DBA Century Lending Company 1 6.13% $14,814
CAROLINA ONE MORTGAGE, LLC 1 6.13% $16,440
Kwik Mortgage Corporation 1 6.25% $13,378
Lakeview Community Capital, LLC 1 6.75% $6,900
SUCCESS MORTGAGE PARTNERS, INC. 1 7.63% $11,911
LIBERTY HOME MORTGAGE CORPORATION 1 7.13% $10,216
AMERICAN PACIFIC MORTGAGE CORPORATION 1 6.13% $14,249
AXIA FINANCIAL, LLC 1 7.25% $18,364
Assurance Financial Group, L.L.C. 1 6.75% $8,996
United Community Bank 1 6.25% $8,051
CARDINAL FINANCIAL 1 6.75% $8,617

The top Hilton Head Island FHA lender as defined by loan originations is UNITED WHOLESALE MORTGAGE, LLC, with 49 FHA loans originated. Their average total fees are $15,155, which is $6,069 higher than the next largest lender, DHI MORTGAGE COMPANY, LTD..

The lowest fee Hilton Head Island FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. ($9,086), ARK-LA-TEX FINANCIAL SERVICES, LLC. ($11,374), PENNYMAC LOAN SERVICES, LLC ($11,426), Gateway First Bank ($12,202) and MOVEMENT MORTGAGE, LLC ($12,375).

The lowest rate Hilton Head Island FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.27%), VANDERBILT MORTGAGE AND FINANCE, INC. (5.82%), JET HOMELOANS, LLC (5.88%), PENNYMAC LOAN SERVICES, LLC (5.97%) and EAGLE HOME MORTGAGE, LLC (6.10%).

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
HILTON HEAD ISLAND-BLUFFTON, SC BEAUFORT 2023 $485,300 $621,250 $750,950 $933,300
HILTON HEAD ISLAND-BLUFFTON, SC JASPER 2023 $485,300 $621,250 $750,950 $933,300

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).