Lancaster FHA Loans

LANCASTER, PA

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.

Lancaster's 125 lenders originated 1,603 FHA loans during 2021. The total origination value was $323,105,000, with an average FHA loan value of $201,563.

Lancaster FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Lancaster averaged 5.18% 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 5.31% and one month ago for the week of 2022-04-08, the average rate was 5.08%.

The average rate one year ago was 3.19%.

For refis of the same type during the week of 2022-05-13, the average rate was 5.01%.

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

Lancaster 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 Lancaster level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
QUICKEN LOANS, LLC 178 2.77% $6,738
RESIDENTIAL MORTGAGE SERVICES, INC. 82 3.03% $8,342
CROSSCOUNTRY MORTGAGE, LLC 77 3.14% $9,477
Sierra Pacific Mortgage Company, Inc. 59 2.91% $7,632
CALIBER HOME LOANS, INC. 56 2.87% $7,951
PENNYMAC LOAN SERVICES, LLC 55 2.92% $5,561
FREEDOM MORTGAGE CORPORATION 53 2.87% $5,897
Mr. Cooper ( Nationstar Mortgage ) 53 3.33% $4,972
BROKER SOLUTIONS, INC. 41 3.31% $9,083
Fulton Bank 40 2.92% $7,488
LAKEVIEW LOAN SERVICING, LLC 40 3.10% $5,589
GUILD MORTGAGE COMPANY 36 3.22% $8,638
LOANDEPOT.COM, LLC 29 3.20% $8,896
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 29 3.13% $7,366
Citizens Bank 25 3.02% $8,406
Homesale Mortgage, LLC 24 2.94% $7,977
UNITED WHOLESALE MORTGAGE, LLC 18 2.79% $8,401
EMM LOANS LLC 18 3.00% $8,341
AmeriHome Mortgage Company, LLC 17 2.79% $5,720
MEMBERS 1ST FEDERAL CREDIT UNION 16 2.78% $8,073
GUARANTEED RATE, INC. 16 2.84% $8,708
NEWREZ LLC 15 2.79% $6,179
VILLAGE CAPITAL & INVESTMENT LLC 15 2.89% $2,848
Manufacturers and Traders Trust Company 14 2.90% $8,286
UNION HOME MORTGAGE CORP. 13 3.15% $9,216
MOVEMENT MORTGAGE, LLC 13 3.12% $7,894
Meridian Bank Corporation 12 2.97% $9,369
Keystone Funding, Inc. 12 2.96% $7,192
HOMEBRIDGE FINANCIAL SERVICES, INC. 12 3.00% $9,880
Lakeview Community Capital, LLC 10 2.89% $6,210
Carrington Mortgage Services, LLC 9 3.00% $8,647
GUARANTEED RATE AFFINITY, LLC 9 2.99% $7,528
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 9 2.93% $10,372
AMERISAVE MORTGAGE CORPORATION 8 2.86% $10,207
FINANCE OF AMERICA MORTGAGE LLC 8 3.08% $9,544
Paramount Residential Mortgage Group, Inc. 7 3.36% $10,359
MUTUAL OF OMAHA MORTGAGE, INC. 7 3.20% $8,907
HOME POINT FINANCIAL CORPORATION 7 2.73% $8,556
ALLIED MORTGAGE GROUP, INC. 6 3.06% $9,617
Northpointe Bank 6 2.75% $9,937
NFM, INC. 6 3.13% $10,709
MCLEAN MORTGAGE CORPORATION 6 3.06% $8,546
InterContinental Capital Group, Inc 5 2.93% $8,236
TIDEWATER MORTGAGE SERVICES, INC. 5 3.18% $7,314
Mortgage America, Inc. 5 2.95% $7,442
HOMESTEAD FUNDING CORP. 5 3.15% $7,978
AMERICAN FINANCING CORPORATION 4 2.59% $7,623
York Traditions Bank 4 2.78% $8,136
Mortgage Network, Inc. 4 3.16% $10,261
AMERICAN FINANCIAL NETWORK, INC. 4 2.81% $16,753
CONTOUR MORTGAGE CORPORATION 4 3.31% $9,311
1ST PREFERENCE MORTGAGE CORP. 3 3.08% $11,550
Advisors Mortgage Group, L.L.C. 3 2.75% $7,989
Bank of England 3 3.21% $9,328
BAYSHORE MORTGAGE FUNDING, LLC 3 3.58% $12,256
HOWARD HANNA FINANCIAL SERVICES, INC. 3 3.25% $9,035
Orrstown Bank 3 2.67% $7,687
Santander Bank, N.A. 3 2.83% $6,937
The Ephrata National Bank 3 2.88% $6,440
UNITED SECURITY FINANCIAL CORP 3 2.50% $5,817
Wells Fargo Bank 3 3.13% $3,829
GENEVA FINANCIAL, LLC 2 3.75% $10,536
Firstrust Savings Bank 2 3.06% $10,036
MDE Home Loans, LLC 2 2.75% $9,572
MEMBER FIRST MORTGAGE, LLC 2 3.38% $7,746
FIRST ALLIANCE HOME MORTGAGE, LLC 2 3.19% $7,177
MID AMERICA MORTGAGE, INC. 2 3.44% $2,616
Equity Prime Mortgage LLC 2 2.88% $5,727
NATION ONE MORTGAGE CORPORATION 2 3.63% $14,441
Nations Lending Corporation 2 3.50% $8,430
NJ LENDERS CORP. 2 2.87% $9,268
Northwest Bank 2 2.94% $6,379
Univest Bank and Trust Co. 2 3.25% $8,847
PNC Bank 2 3.00% $7,311
PRIMARY RESIDENTIAL MORTGAGE, INC. 2 3.44% $9,286
Prosperity Home Mortgage, LLC 2 3.38% $9,695
Residential Mortgage Solutions, Inc. 2 2.75% $8,532
STEARNS LENDING, LLC 2 2.56% $6,747
ZILLOW HOME LOANS, LLC 2 3.31% $6,961
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 2 2.81% $8,419
AMERICAN FINANCIAL RESOURCES, INC. 2 3.00% $9,356
Gateway First Bank 2 3.06% $11,288
EMBRACE HOME LOANS, INC. 1 3.88% $8,745
GREENWAY MORTGAGE FUNDING CORP. 1 2.38% $6,918
The Federal Savings Bank 1 3.75% $9,404
NBKC BANK 1 2.75% $9,463
East Coast Capital Corp. 1 3.13% $12,842
DRAPER AND KRAMER MORTGAGE CORP. 1 2.95% $8,691
APEX HOME LOANS, INC. 1 2.75% $6,856
Customers Bank 1 2.25% $5,705
TOP FLITE FINANCIAL, INC. 1 3.75% $15,757
OCEANSIDE MORTGAGE COMPANY 1 2.25% $2,726
OCMBC, INC. 1 3.24% $8,692
Truist Bank 1 3.25% $6,960
CMG MORTGAGE, INC. 1 2.75% $14,469
CHURCHILL MORTGAGE CORPORATION 1 3.25% $5,668
PHH Mortgage Corporation 1 3.13% $4,365
PIKE CREEK MORTGAGE SERVICES, INC. 1 3.63% $3,615
Integrity Home Mortgage Corp 1 2.88% $10,606
UNITED MORTGAGE CORP. 1 3.25% $8,998
PRIMELENDING, A PLAINSCAPITAL COMPANY 1 3.25% $9,111
ABSOLUTE HOME MORTGAGE CORPORATION 1 2.63% $10,413
BELEM SERVICING LLC 1 2.75% $8,152
RELIANCE FIRST CAPITAL, LLC 1 2.63% $10,064
BELCO COMMUNITY CREDIT UNION 1 3.25% $9,415
Flagstar Bank, FSB 1 2.39% $5,211
LENDUS, LLC 1 3.13% $7,939
HOMESPIRE MORTGAGE CORPORATION 1 2.88% $8,368
Magnolia Bank 1 2.63% $12,747
First National Bank of Pennsylvania 1 2.63% $7,178
FIRST HERITAGE FINANCIAL, LLC 1 3.13% $5,482
Alcova Mortgage LLC 1 3.00% $3,135
Bank of America 1 2.63% $11,905
First Guaranty Mortgage Corporation 1 3.38% $4,332
SOVEREIGN LENDING GROUP INCORPORATED 1 3.25% $7,191
MICHIGAN MUTUAL, INC. 1 3.00% $6,186
HOMESIDE FINANCIAL, LLC 1 2.38% $13,692
Mid Penn Bank 1 2.75% $7,174
MILEND, INC. 1 2.88% $7,506
MLD MORTGAGE INC. 1 3.25% $11,003
FAY SERVICING, LLC 1 2.75% $8,531
FAMILY FIRST FUNDING LLC 1 3.25% $6,869
Mortgage Research Center, LLC 1 2.75% $7,940
SUN WEST MORTGAGE COMPANY, INC. 1 2.88% $4,358
ENVOY MORTGAGE, LTD 1 4.50% $12,673

The top Lancaster FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 178 FHA loans originated. Their average total fees are $6,738, which is $1,604 lower than the next largest lender, RESIDENTIAL MORTGAGE SERVICES, INC..

The lowest fee Lancaster FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL & INVESTMENT LLC ($2,848), Mr. Cooper ( Nationstar Mortgage ) ($4,972), PENNYMAC LOAN SERVICES, LLC ($5,561), LAKEVIEW LOAN SERVICING, LLC ($5,589) and AmeriHome Mortgage Company, LLC ($5,720).

The lowest rate Lancaster FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (2.77%), MEMBERS 1ST FEDERAL CREDIT UNION (2.78%), UNITED WHOLESALE MORTGAGE, LLC (2.79%), NEWREZ LLC (2.79%) and AmeriHome Mortgage Company, LLC (2.79%).

Lancaster FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
LANCASTER, PA LANCASTER 2022 $420,680 $538,650 $651,050 $809,150

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Lancaster (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 $259,900 (5.2%) $296,472 (3.3%) 0.96 1,222
2018-02-01 $269,700 (10.1%) $307,268 (6.2%) 0.97 1,169
2018-03-01 $274,900 (11.3%) $315,738 (7.9%) 0.95 1,155
2018-04-01 $269,995 (8.9%) $310,733 (4.8%) 0.91 1,214
2018-05-01 $275,000 (10.0%) $316,735 (4.6%) 0.92 1,207
2018-06-01 $275,000 (10.0%) $317,224 (4.9%) 0.92 1,284
2018-07-01 $275,000 (10.6%) $320,266 (6.7%) 0.92 1,332
2018-08-01 $274,900 (11.2%) $321,069 (8.1%) 0.92 1,321
2018-09-01 $274,900 (10.0%) $321,473 (9.1%) 0.92 1,302
2018-10-01 $272,250 (8.9%) $322,768 (8.9%) 0.91 1,305
2018-11-01 $269,900 (8.0%) $320,442 (10.4%) 0.90 1,313
2018-12-01 $274,900 (8.1%) $323,370 (12.1%) 0.94 1,248
2019-01-01 $276,945 (6.6%) $325,366 (9.8%) 0.96 1,190
2019-02-01 $279,450 (3.6%) $327,927 (6.7%) 0.94 1,121
2019-03-01 $287,709 (4.7%) $335,781 (6.4%) 0.94 1,079
2019-04-01 $295,214 (9.3%) $343,095 (10.4%) 0.93 1,071
2019-05-01 $292,450 (6.4%) $341,949 (8.0%) 0.90 1,115
2019-06-01 $289,900 (5.4%) $346,400 (9.2%) 0.89 1,133
2019-07-01 $288,700 (5.0%) $347,206 (8.4%) 0.90 1,107
2019-08-01 $288,386 (4.9%) $349,334 (8.8%) 0.91 1,077
2019-09-01 $293,400 (6.7%) $353,782 (10.1%) 0.93 1,034
2019-10-01 $291,880 (7.2%) $349,641 (8.3%) 0.93 1,074
2019-11-01 $294,900 (9.3%) $347,591 (8.5%) 0.95 1,039
2019-12-01 $299,900 (9.1%) $354,777 (9.7%) 1.00 898
2020-01-01 $306,682 (10.7%) $360,352 (10.8%) 1.02 801
2020-02-01 $319,900 (14.5%) $366,627 (11.8%) 1.03 738
2020-03-01 $320,950 (11.6%) $374,090 (11.4%) 1.00 716
2020-04-01 $326,250 (10.5%) $387,280 (12.9%) 1.02 695
2020-05-01 $319,900 (9.4%) $380,892 (11.4%) 0.97 724
2020-06-01 $319,450 (10.2%) $377,611 (9.0%) 0.93 743
2020-07-01 $324,400 (12.4%) $386,333 (11.3%) 0.93 660
2020-08-01 $334,900 (16.1%) $400,827 (14.7%) 0.96 604
2020-09-01 $328,050 (11.8%) $395,341 (11.8%) 0.94 570
2020-10-01 $329,900 (13.0%) $397,666 (13.7%) 0.94 539
2020-11-01 $329,900 (11.9%) $396,479 (14.1%) 0.94 515
2020-12-01 $332,248 (10.8%) $389,292 (9.7%) 0.97 482
2021-01-01 $341,900 (11.5%) $405,680 (12.6%) 1.01 411
2021-02-01 $354,900 (10.9%) $417,694 (13.9%) 1.02 353
2021-03-01 $350,200 (9.1%) $412,191 (10.2%) 0.98 356
2021-04-01 $349,450 (7.1%) $410,653 (6.0%) 0.94 386
2021-05-01 $349,900 (9.4%) $405,014 (6.3%) 0.92 396
2021-06-01 $322,425 (0.9%) $386,291 (2.3%) 0.84 464
2021-07-01 $316,200 (-2.5%) $381,896 (-1.2%) 0.82 453
2021-08-01 $327,700 (-2.2%) $410,176 (2.3%) 0.86 478
2021-09-01 $320,775 (-2.2%) $415,484 (5.1%) 0.84 470
2021-10-01 $320,000 (-3.0%) $412,193 (3.7%) 0.84 467
2021-11-01 $333,370 (1.1%) $421,756 (6.4%) 0.88 422
2021-12-01 $349,950 (5.3%) $436,522 (12.1%) 0.93 342
2022-01-01 $369,900 (8.2%) $484,855 (19.5%) 0.99 250
2022-02-01 $354,950 (0.0%) $462,765 (10.8%) 0.90 260
2022-03-01 $368,450 (5.2%) $438,264 (6.3%) 0.91 318
2022-04-01 $374,900 (7.3%) $452,988 (10.3%) 0.88 328
Lancaster's median listing price for 2022-04-01 was $374,900, a difference of $25,450 (7.3%) versus the prior year and $6,450 versus the prior month.

Lancaster's median listing price comes in at 88% of the national average.

Lancaster's average listing price for 2022-04-01 was $452,988, a difference of $42,335 (10.3%) versus the prior year and $14,724 versus the prior month.

For the 2022-04-01 period, Lancaster had 328 MLS listings, a difference of 10 listings (3%) versus the prior month and -58 listings (-15%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Lancaster (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 94 days 1,870 sqft
2018-02-01 96 days 1,897 sqft
2018-03-01 78 days 1,918 sqft
2018-04-01 65 days 1,898 sqft
2018-05-01 65 days 1,899 sqft
2018-06-01 53 days 2,056 sqft
2018-07-01 54 days 2,046 sqft
2018-08-01 62 days 2,032 sqft
2018-09-01 68 days 2,054 sqft
2018-10-01 66 days 2,002 sqft
2018-11-01 65 days 1,993 sqft
2018-12-01 78 days 1,975 sqft
2019-01-01 80 days 1,953 sqft
2019-02-01 80 days 1,965 sqft
2019-03-01 72 days 2,018 sqft
2019-04-01 51 days 2,084 sqft
2019-05-01 46 days 2,081 sqft
2019-06-01 51 days 2,057 sqft
2019-07-01 53 days 2,035 sqft
2019-08-01 53 days 2,033 sqft
2019-09-01 52 days 2,059 sqft
2019-10-01 51 days 2,062 sqft
2019-11-01 60 days 2,042 sqft
2019-12-01 77 days 2,050 sqft
2020-01-01 85 days 2,118 sqft
2020-02-01 85 days 2,183 sqft
2020-03-01 60 days 2,140 sqft
2020-04-01 77 days 2,160 sqft
2020-05-01 78 days 2,125 sqft
2020-06-01 47 days 2,150 sqft
2020-07-01 42 days 2,172 sqft
2020-08-01 46 days 2,210 sqft
2020-09-01 49 days 2,122 sqft
2020-10-01 52 days 2,100 sqft
2020-11-01 51 days 2,100 sqft
2020-12-01 59 days 2,018 sqft
2021-01-01 67 days 2,060 sqft
2021-02-01 68 days 2,096 sqft
2021-03-01 52 days 2,100 sqft
2021-04-01 35 days 2,076 sqft
2021-05-01 35 days 2,046 sqft
2021-06-01 39 days 1,904 sqft
2021-07-01 45 days 1,930 sqft
2021-08-01 41 days 1,974 sqft
2021-09-01 45 days 1,922 sqft
2021-10-01 46 days 1,948 sqft
2021-11-01 47 days 1,908 sqft
2021-12-01 58 days 1,908 sqft
2022-01-01 61 days 1,971 sqft
2022-02-01 43 days 1,952 sqft
2022-03-01 34 days 1,912 sqft
2022-04-01 37 days 1,955 sqft
Lancaster's median listing age (time on market) for 2022-04-01 was 37 days. This is 7% longer than the same period one year ago.

Lancaster's median square footage for active listings during the 2022-04-01 period was 1,955 sqft. One year prior, the average listing was 2,076 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).