Huntsville FHA Loan Rates, Closing Costs & Stats

HUNTSVILLE, 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.

    Huntsville's 151 lenders originated 2,538 FHA loans during 2024. The total origination value was $705,390,000, with an average FHA loan value of $277,931.

    Huntsville FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Huntsville averaged -0.37% for the week of 2025-06-20, compared to the national average (all FHA variants) of 0% for the same period.

    Huntsville's average FHA mortgage closing costs are $8,661.

    The average rate for the prior week (2025-06-13) was 6.52% and one month ago for the week of 2025-05-16, the average rate was 6.28%.

    The average rate one year ago was 6.23%.

    For refis of the same type during the week of 2025-06-20, the average rate was 0%.

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

    Huntsville 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 Huntsville level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    EAGLE HOME MORTGAGE, LLC 225 4.59% $7,001
    DHI MORTGAGE COMPANY, LTD. 178 5.13% $7,211
    UNITED WHOLESALE MORTGAGE, LLC 163 5.99% $12,064
    QUICKEN LOANS, LLC 144 6.35% $11,214
    CANOPY MORTGAGE, LLC 84 6.08% $18,869
    FREEDOM MORTGAGE CORPORATION 82 6.15% $13,656
    VANDERBILT MORTGAGE AND FINANCE, INC. 75 5.40% $13,143
    STOCKTON MORTGAGE CORPORATION 70 6.02% $12,025
    FirstBank 65 6.22% $10,431
    Trustmark National Bank 56 6.14% $12,398
    DSLD MORTGAGE, LLC 49 5.66% $6,211
    BROKER SOLUTIONS, INC. 45 6.45% $12,809
    PENNYMAC LOAN SERVICES, LLC 37 6.14% $10,465
    PLANET HOME LENDING, LLC 32 6.28% $8,107
    LOANDEPOT.COM, LLC 32 6.48% $10,615
    FIRST COMMUNITY MORTGAGE, INC. 31 6.06% $10,736
    MOVEMENT MORTGAGE, LLC 30 6.41% $12,906
    Synovus Bank 30 6.07% $9,749
    Mr. Cooper ( Nationstar Mortgage ) 28 6.59% $12,196
    AMERICAN PORTFOLIO MORTGAGE CORPORATION 26 6.58% $10,233
    Regions Bank 26 6.04% $9,288
    FBC MORTGAGE, LLC 25 5.22% $8,930
    FIRST COLONY MORTGAGE CORPORATION 23 5.88% $14,884
    REDSTONE Federal Credit Union 22 6.28% $7,669
    Victorian Finance, LLC 21 6.25% $13,628
    Hamilton Mortgage Corporation 19 5.99% $10,402
    South State Bank 17 6.18% $12,181
    Renasant Bank 15 5.95% $12,350
    Flagstar Bank, FSB 15 6.20% $9,015
    GMFS LLC 15 6.27% $9,499
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 15 6.52% $11,649
    Assurance Financial Group, L.L.C. 14 6.48% $11,723
    CMG MORTGAGE, INC. 14 6.65% $13,496
    HOMEAMERICAN MORTGAGE CORPORATION 13 4.33% $5,582
    INSPIRE HOME LOANS INC. 13 4.88% $7,904
    LAKEVIEW LOAN SERVICING, LLC 12 6.30% $8,364
    CARDINAL FINANCIAL 12 6.50% $12,346
    Carrington Mortgage Services, LLC 12 6.08% $14,722
    EVERETT FINANCIAL, INC. 12 6.46% $12,348
    First Federal Bank, A FSB 11 5.92% $10,493
    GUILD MORTGAGE COMPANY 11 6.52% $9,461
    CROSSCOUNTRY MORTGAGE, LLC 11 6.48% $11,208
    NEWREZ LLC 11 6.31% $10,781
    TOWNE MORTGAGE COMPANY 10 5.92% $11,582
    United Community Bank 10 6.04% $9,015
    Century Mortgage Company DBA Century Lending Company 10 6.16% $11,337
    HOMEOWNERS FINANCIAL GROUP USA, LLC 9 5.93% $13,273
    UNION HOME MORTGAGE CORP. 9 6.36% $12,367
    LOANPAL, LLC 9 5.80% $11,393
    Equity Prime Mortgage LLC 9 6.97% $11,368
    BancorpSouth 9 6.03% $7,846
    MUTUAL OF OMAHA MORTGAGE, INC. 9 6.64% $14,688
    MILEND, INC. 8 6.34% $14,050
    SouthPoint Bank 8 5.30% $8,344
    Prosperity Home Mortgage, LLC 8 5.83% $12,014
    Nations Lending Corporation 8 6.91% $10,645
    Pinnacle Bank 8 6.13% $11,266
    AmeriHome Mortgage Company, LLC 7 6.64% $6,247
    VILLAGE CAPITAL MORTGAGE 7 6.23% $7,123
    AMERICAN FINANCIAL NETWORK, INC. 7 7.34% $13,910
    GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 7 6.54% $10,062
    The Loan Store, Inc. 7 6.09% $13,724
    S1L, Inc. 6 6.29% $13,695
    ZILLOW HOME LOANS, LLC 6 6.38% $10,575
    PNC Bank 6 6.81% $8,125
    Lakeview Community Capital, LLC 6 6.15% $6,967
    ISERVE RESIDENTIAL LENDING, LLC 5 6.40% $17,511
    TJC Mortgage, Inc. 5 6.30% $9,189
    OCMBC, INC. 5 5.85% $16,017
    AMERICAN FINANCING CORPORATION 5 5.72% $14,212
    ENDEAVOR CAPITAL, LLC. 5 6.50% $9,339
    Plains Commerce Bank 5 6.48% $8,124
    NATIONWIDE MORTGAGE BANKERS, INC. 4 6.63% $16,800
    AMERICAN FINANCIAL RESOURCES, INC. 4 7.22% $13,886
    AMERISAVE MORTGAGE CORPORATION 4 6.31% $11,093
    Bank Independent 4 5.81% $8,651
    Consumer First Mortgage, Inc. 4 6.13% $12,016
    CONTOUR MORTGAGE CORPORATION 4 6.50% $11,652
    FIRST CONTINENTAL MORTGAGE, LTD. 4 5.99% $8,508
    LAND HOME FINANCIAL SERVICES, INC. 4 7.06% $11,227
    MORTGAGE INVESTORS GROUP, INC. 4 6.53% $11,111
    SeaTrust Mortgage Company 4 6.72% $11,516
    SUN WEST MORTGAGE COMPANY, INC. 4 6.96% $11,699
    TOP FLITE FINANCIAL, INC. 4 7.25% $16,326
    Wolfe Financial, Inc 4 6.56% $13,028
    JPMorgan Chase Bank 3 6.42% $5,714
    ROYAL UNITED MORTGAGE LLC 3 6.46% $11,192
    Ixonia Bank 3 6.08% $7,325
    Paramount Residential Mortgage Group, Inc. 3 6.75% $8,447
    LIBERTY HOME MORTGAGE CORPORATION 3 6.83% $10,204
    MID AMERICA MORTGAGE, INC. 3 6.79% $10,785
    NATIONS DIRECT MORTGAGE, LLC 3 5.83% $12,670
    ACOPIA, LLC 3 5.96% $10,186
    MORTGAGE SOLUTIONS OF COLORADO, LLC 3 6.75% $8,741
    The Federal Savings Bank 3 7.08% $12,071
    SUCCESS MORTGAGE PARTNERS, INC. 3 6.33% $14,678
    SOUTHWEST FUNDING, LP 3 6.96% $12,176
    ABSOLUTE HOME MORTGAGE CORPORATION 2 6.50% $11,255
    Magnolia Bank 2 5.75% $10,634
    Loan Simple, Inc. 2 6.63% $15,421
    Mortgage Research Center, LLC 2 6.50% $5,137
    GUARANTEED RATE, INC. 2 6.44% $11,515
    PLAZA HOME MORTGAGE, INC. 2 7.13% $10,713
    GUARANTEED RATE AFFINITY, LLC 2 6.11% $10,018
    Princeton Mortgage Corporation 2 6.31% $11,180
    Granite Community Bank 2 5.75% $10,521
    RESIDENTIAL WHOLESALE MORTGAGE, INC. 2 6.31% $7,265
    SOUTHPOINT FINANCIAL SERVICES, INC. 2 6.56% $8,845
    BAY EQUITY LLC 2 6.25% $7,066
    Truist 2 5.58% $13,873
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 2 6.38% $8,142
    Ameris Bank 2 6.38% $13,057
    American Mortgage & Equity Consultants, Inc. 1 7.75% $10,198
    Flanagan State Bank 1 6.75% $14,725
    First Horizon Bank 1 6.00% $17,522
    First Federal Bank 1 6.00% $11,127
    EMM LOANS LLC 1 6.25% $9,486
    AMERICAN PACIFIC MORTGAGE CORPORATION 1 5.88% $10,017
    Old National Bank 1 5.75% $9,114
    DATA MORTGAGE, INC. 1 6.25% $7,234
    ALAMEDA MORTGAGE CORPORATION 1 6.75% $13,431
    ServisFirst Bank 1 5.88% $12,989
    CHURCHILL MORTGAGE CORPORATION 1 6.25% $11,608
    MICHIGAN MUTUAL, INC. 1 6.75% $10,714
    CB&S Bank, Inc. 1 6.25% $14,906
    OCEANSIDE MORTGAGE COMPANY 1 6.13% $2,275
    CALCON MUTUAL MORTGAGE LLC 1 5.75% $21,213
    Stride Bank 1 6.75% $10,184
    KEESLER 1 4.88% $9,162
    Wells Fargo Bank 1 6.00% $10,753
    BECKAM FUNDING CORP. 1 7.50% $9,793
    T2 FINANCIAL LLC 1 5.25% $19,170
    Texana Bank 1 5.75% $25,372
    NEW DAY FINANCIAL, LLC 1 7.99% $2,122
    NASA Federal Credit Union 1 6.25% $11,110
    Barrington Bank & Trust Company, N.A. 1 6.25% $11,566
    LEADERONE FINANCIAL CORPORATION 1 7.00% $10,208
    Towne Bank 1 6.25% $11,856
    BANKSOUTH MORTGAGE COMPANY, LLC 1 5.75% $10,113
    Merchants Bank of Indiana 1 6.75% $7,381
    Orion Federal Credit Union 1 6.00% $6,688
    PHH Mortgage Corporation 1 6.63% $8,723
    INTERLINC MORTGAGE SERVICES, LLC 1 6.25% $8,621
    Home Mortgage Alliance Corp 1 6.25% $10,811
    Bank of England 1 6.75% $13,298
    ATLANTIC BAY MORTGAGE GROUP, L.L.C. 1 6.63% $8,502
    MORIA DEVELOPMENT, INC. 1 7.25% $7,339
    POLARIS HOME FUNDING CORP. 1 6.25% $8,025
    PREMIER LENDING, INC. 1 6.75% $9,785
    PRIMELENDING, A PLAINSCAPITAL COMPANY 1 6.13% $10,898
    UNITED MORTGAGE CORP 1 7.25% $12,059

    The top Huntsville FHA lender as defined by loan originations is EAGLE HOME MORTGAGE, LLC, with 225 FHA loans originated. Their average total fees are $7,001, which is $210 lower than the next largest lender, DHI MORTGAGE COMPANY, LTD..

    The lowest fee Huntsville FHA lenders (with over 10 loans originated) are HOMEAMERICAN MORTGAGE CORPORATION ($5,582), DSLD MORTGAGE, LLC ($6,211), EAGLE HOME MORTGAGE, LLC ($7,001), DHI MORTGAGE COMPANY, LTD. ($7,211) and REDSTONE Federal Credit Union ($7,669).

    The lowest rate Huntsville FHA lenders (with over 10 loans originated) are HOMEAMERICAN MORTGAGE CORPORATION (4.33%), EAGLE HOME MORTGAGE, LLC (4.59%), INSPIRE HOME LOANS INC. (4.88%), DHI MORTGAGE COMPANY, LTD. (5.13%) and FBC MORTGAGE, LLC (5.22%).

    Huntsville FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    HUNTSVILLE, AL LIMESTONE 2022 $420,680 $538,650 $651,050 $809,150
    HUNTSVILLE, AL MADISON 2022 $420,680 $538,650 $651,050 $809,150
    HUNTSVILLE, AL LIMESTONE 2023 $472,030 $604,400 $730,525 $907,900
    HUNTSVILLE, AL MADISON 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).