Knoxville FHA Loan Rates, Closing Costs & Stats

KNOXVILLE, TN

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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.

    Knoxville's 158 lenders originated 2,594 FHA loans during 2023. The total origination value was $742,690,000, with an average FHA loan value of $286,311.

    Knoxville FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Knoxville averaged 6.12% for the week of 2024-11-08, compared to the national average (all FHA variants) of 6.425% for the same period.

    Knoxville's average FHA mortgage closing costs are $7,864.

    The average rate for the prior week (2024-11-01) was 6.19% and one month ago for the week of 2024-10-04, the average rate was 6.01%.

    The average rate one year ago was 7.46%.

    For refis of the same type during the week of 2024-11-08, the average rate was 6.53%.

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

    Knoxville 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 Knoxville level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    MORTGAGE INVESTORS GROUP, INC. 385 6.51% $10,342
    QUICKEN LOANS, LLC 271 6.25% $11,371
    UNITED WHOLESALE MORTGAGE, LLC 187 6.31% $13,107
    FIRST COMMUNITY MORTGAGE, INC. 122 6.32% $10,723
    CARDINAL FINANCIAL 109 6.65% $12,934
    DHI MORTGAGE COMPANY, LTD. 89 6.59% $8,734
    MOVEMENT MORTGAGE, LLC 78 6.71% $12,616
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 66 6.61% $9,846
    FREEDOM MORTGAGE CORPORATION 54 6.95% $13,105
    LOANDEPOT.COM, LLC 47 6.32% $11,841
    STOCKTON MORTGAGE CORPORATION 42 6.68% $12,529
    PENNYMAC LOAN SERVICES, LLC 41 6.12% $14,039
    CMG MORTGAGE, INC. 36 6.62% $12,165
    Mr. Cooper ( Nationstar Mortgage ) 31 6.18% $16,343
    CROSSCOUNTRY MORTGAGE, LLC 28 6.63% $12,235
    NFM, INC. 26 6.31% $9,485
    AMERISAVE MORTGAGE CORPORATION 26 6.20% $14,697
    EVERETT FINANCIAL, INC. 23 6.77% $13,028
    MUTUAL OF OMAHA MORTGAGE, INC. 22 6.35% $12,511
    Regions Bank 22 5.95% $10,492
    AMERICAN FINANCIAL RESOURCES, INC. 21 6.35% $10,978
    Gateway First Bank 21 7.08% $10,020
    FirstBank 20 6.19% $10,948
    NEWREZ LLC 20 6.49% $10,921
    UNION HOME MORTGAGE CORP. 19 6.76% $10,572
    Carrington Mortgage Services, LLC 19 6.32% $12,535
    BROKER SOLUTIONS, INC. 19 6.68% $11,051
    AMERICAN PACIFIC MORTGAGE CORPORATION 17 6.63% $11,489
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 17 6.65% $11,567
    AMERICAN FINANCIAL NETWORK, INC. 17 7.07% $11,791
    RELIANCE FIRST CAPITAL, LLC 16 6.99% $11,569
    LAKEVIEW LOAN SERVICING, LLC 16 6.34% $10,716
    TOWNE MORTGAGE COMPANY 15 6.56% $11,826
    Equity Prime Mortgage LLC 15 6.77% $11,391
    MID AMERICA MORTGAGE, INC. 15 7.44% $8,468
    Truist 14 6.42% $9,053
    Sierra Pacific Mortgage Company, Inc. 13 6.45% $12,886
    Waterstone Mortgage Corporation 12 6.49% $13,622
    SUN WEST MORTGAGE COMPANY, INC. 12 6.01% $12,131
    Northpointe Bank 12 5.97% $10,025
    ISERVE RESIDENTIAL LENDING, LLC 11 6.81% $17,199
    U.S. Bank 10 6.59% $7,426
    AMCAP MORTGAGE, LTD. 10 6.83% $11,198
    Wolfe Financial, Inc 9 7.14% $13,106
    MILEND, INC. 9 6.42% $15,708
    NexBank 9 6.22% $11,418
    Nations Lending Corporation 9 6.74% $14,269
    Pinnacle Bank 8 6.06% $10,941
    PLANET HOME LENDING, LLC 8 5.63% $8,881
    HOMESIDE FINANCIAL, LLC 8 7.19% $11,905
    SUCCESS MORTGAGE PARTNERS, INC. 7 5.91% $9,818
    COMPASS MORTGAGE, INC. 7 6.86% $12,100
    Century Mortgage Company DBA Century Lending Company 7 6.39% $14,268
    Flagstar Bank, FSB 7 6.76% $11,799
    BAY EQUITY LLC 7 5.95% $9,363
    THRIVE MORTGAGE, LLC 7 6.55% $13,431
    TJC Mortgage, Inc. 7 6.04% $14,245
    AmeriHome Mortgage Company, LLC 6 6.46% $10,927
    VANDERBILT MORTGAGE AND FINANCE, INC. 6 6.33% $15,387
    CHURCHILL MORTGAGE CORPORATION 6 6.33% $11,307
    ENDEAVOR CAPITAL, LLC. 6 6.85% $11,611
    SmartBank 5 6.38% $8,860
    United Community Bank 5 6.53% $9,526
    Citizens Bank 5 5.95% $10,518
    ZILLOW HOME LOANS, LLC 4 7.09% $9,809
    Countybank 4 6.81% $8,402
    NORTHERN MORTGAGE SERVICES, LLC 4 6.97% $7,342
    Plains Commerce Bank 4 6.40% $10,702
    T2 FINANCIAL LLC 4 6.59% $14,854
    The Federal Savings Bank 4 6.31% $20,646
    VILLAGE CAPITAL MORTGAGE 4 6.41% $5,325
    ALAMEDA MORTGAGE CORPORATION 3 6.67% $10,657
    MORTGAGE SOLUTIONS OF COLORADO, LLC 3 6.46% $11,211
    HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 3 6.83% $14,918
    SUMMIT FUNDING, INC. 3 6.96% $13,748
    VERITAS FUNDING, LLC 3 6.21% $17,538
    TOP FLITE FINANCIAL, INC. 3 6.96% $14,659
    Princeton Mortgage Corporation 3 6.38% $12,264
    MICHIGAN MUTUAL, INC. 3 6.63% $10,659
    ACADEMY MORTGAGE CORPORATION 3 6.92% $13,940
    SWBC MORTGAGE CORPORATION 3 6.33% $9,826
    First Horizon Bank 3 6.38% $12,825
    AMERICAN FINANCING CORPORATION 3 6.16% $8,244
    LOANPAL, LLC 2 6.19% $15,328
    EMM LOANS LLC 2 5.81% $16,001
    PENTAGON FEDERAL CREDIT UNION 2 6.50% $9,704
    MEMBER FIRST MORTGAGE, LLC 2 6.63% $9,911
    Franklin Loan Corporation 2 6.31% $19,227
    LADERA LENDING, INC. 2 6.56% $13,174
    SOUTHWEST STAGE FUNDING, LLC 2 6.81% $10,212
    SOVEREIGN LENDING GROUP INCORPORATED 2 6.19% $16,372
    LEADERONE FINANCIAL CORPORATION 2 6.50% $8,225
    NATIONS DIRECT MORTGAGE, LLC 2 6.00% $21,971
    GVC MORTGAGE, INC. 2 6.69% $13,266
    PRIMELENDING, A PLAINSCAPITAL COMPANY 2 7.00% $10,214
    Prosperity Home Mortgage, LLC 2 6.81% $11,617
    The Loan Store, Inc. 2 7.19% $13,249
    GUILD MORTGAGE COMPANY 2 5.50% $8,805
    GUARANTEED RATE, INC. 2 6.94% $9,885
    FirstTrust Home Loans, Inc. 2 6.31% $8,890
    Mortgage Research Center, LLC 2 7.19% $14,611
    Renasant Bank 2 6.63% $7,162
    GSF Mortgage Corporation 2 5.88% $10,414
    SOUTHPOINT FINANCIAL SERVICES, INC. 1 6.75% $12,150
    CORNERSTONE HOME LENDING, INC. 1 7.63% $19,312
    CALIBER HOME LOANS, INC. 1 7.25% $10,618
    BETTER MORTGAGE CORPORATION 1 6.13% $5,241
    WesBanco 1 5.75% $10,606
    The Central Trust Bank 1 5.49% $13,491
    ABSOLUTE HOME MORTGAGE CORPORATION 1 7.63% $12,387
    The Huntington National Bank 1 7.50% $5,366
    Bank of England 1 6.75% $12,625
    Armed Forces Bank 1 5.75% $9,357
    Ameris Bank 1 6.75% $12,050
    AMERICAN PORTFOLIO MORTGAGE CORPORATION 1 6.75% $12,864
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 1 7.00% $12,586
    American Mortgage & Equity Consultants, Inc. 1 6.75% $15,004
    United Fidelity Funding Corp. 1 8.25% $24,808
    LEGEND LENDING CORPORATION 1 5.63% $27,524
    AHL FUNDING 1 7.13% $8,733
    VAN DYK MORTGAGE CORPORATION 1 7.13% $11,023
    1ST SIGNATURE LENDING, LLC 1 7.13% $15,545
    V.I.P. MORTGAGE, INC. 1 6.00% $13,575
    HOMESTEAD FUNDING CORP. 1 5.63% $11,021
    Kwik Mortgage Corporation 1 7.00% $15,623
    HOMEBRIDGE FINANCIAL SERVICES, INC. 1 5.88% $15,113
    US MORTGAGE CORPORATION 1 5.75% $10,628
    Loan Simple, Inc. 1 5.75% $18,529
    Magnolia Bank 1 6.25% $9,437
    Mid-Continent Funding, Inc. 1 5.75% $13,458
    Goldwater Bank, N.A. 1 7.75% $9,246
    M&T Bank 1 6.75% $8,593
    Florida Capital Bank 1 6.13% $9,495
    NATIONWIDE MORTGAGE BANKERS, INC. 1 6.75% $10,691
    NBKC BANK 1 7.00% $11,984
    NETWORK CAPITAL FUNDING CORPORATION 1 5.63% $8,792
    FLAT BRANCH MORTGAGE, INC. 1 6.75% $12,198
    First Option Mortgage, LLC 1 7.63% $12,711
    NORWICH COMMERCIAL GROUP, INC. 1 7.63% $9,107
    Paramount Residential Mortgage Group, Inc. 1 7.88% $15,479
    First Federal Bank 1 5.63% $10,436
    PHH Mortgage Corporation 1 6.50% $7,488
    FIRST COLONY MORTGAGE CORPORATION 1 6.25% $7,190
    Wells Fargo Bank 1 7.63% $7,532
    First-Citizens Bank & Trust Company 1 6.88% $10,774
    POLARIS HOME FUNDING CORP. 1 6.63% $10,347
    Preston Home Loans Inc 1 7.25% $17,365
    FIRST ALLIANCE HOME MORTGAGE, LLC 1 7.50% $17,100
    RADIUS FINANCIAL GROUP INC. 1 7.25% $12,269
    RANLIFE, INC. 1 5.99% $12,470
    Fifth Third Bank 1 7.00% $8,213
    FAIRWAY FUNDING GROUP, INC. 1 7.25% $9,689
    RESIDENTIAL BANCORP 1 8.25% $12,616
    Residential Mortgage Solutions, Inc. 1 6.75% $14,184
    SECURITYNATIONAL MORTGAGE COMPANY 1 5.75% $14,746
    Shamrock Home Loans, Inc. 1 6.75% $9,902
    Simmons Bank 1 6.13% $10,081
    EMBRACE HOME LOANS, INC. 1 6.49% $11,317

    The top Knoxville FHA lender as defined by loan originations is MORTGAGE INVESTORS GROUP, INC., with 385 FHA loans originated. Their average total fees are $10,342, which is $1,029 lower than the next largest lender, QUICKEN LOANS, LLC.

    The lowest fee Knoxville FHA lenders (with over 10 loans originated) are U.S. Bank ($7,426), MID AMERICA MORTGAGE, INC. ($8,468), DHI MORTGAGE COMPANY, LTD. ($8,734), Truist ($9,053) and NFM, INC. ($9,485).

    The lowest rate Knoxville FHA lenders (with over 10 loans originated) are Regions Bank (5.95%), Northpointe Bank (5.97%), SUN WEST MORTGAGE COMPANY, INC. (6.01%), PENNYMAC LOAN SERVICES, LLC (6.12%) and Mr. Cooper ( Nationstar Mortgage ) (6.18%).

    Knoxville FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    KNOXVILLE, TN ANDERSON 2022 $420,680 $538,650 $651,050 $809,150
    KNOXVILLE, TN BLOUNT 2022 $420,680 $538,650 $651,050 $809,150
    KNOXVILLE, TN CAMPBELL 2022 $420,680 $538,650 $651,050 $809,150
    KNOXVILLE, TN KNOX 2022 $420,680 $538,650 $651,050 $809,150
    KNOXVILLE, TN LOUDON 2022 $420,680 $538,650 $651,050 $809,150
    KNOXVILLE, TN MORGAN 2022 $420,680 $538,650 $651,050 $809,150
    KNOXVILLE, TN ROANE 2022 $420,680 $538,650 $651,050 $809,150
    KNOXVILLE, TN UNION 2022 $420,680 $538,650 $651,050 $809,150
    KNOXVILLE, TN ANDERSON 2023 $472,030 $604,400 $730,525 $907,900
    KNOXVILLE, TN BLOUNT 2023 $472,030 $604,400 $730,525 $907,900
    KNOXVILLE, TN CAMPBELL 2023 $472,030 $604,400 $730,525 $907,900
    KNOXVILLE, TN KNOX 2023 $472,030 $604,400 $730,525 $907,900
    KNOXVILLE, TN LOUDON 2023 $472,030 $604,400 $730,525 $907,900
    KNOXVILLE, TN MORGAN 2023 $472,030 $604,400 $730,525 $907,900
    KNOXVILLE, TN ROANE 2023 $472,030 $604,400 $730,525 $907,900
    KNOXVILLE, TN UNION 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).