Lancaster FHA Loan Rates, Closing Costs & Stats

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 106 lenders originated 700 FHA loans during 2023. The total origination value was $166,450,000, with an average FHA loan value of $237,786.

Lancaster FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Lancaster averaged -0.1% for the week of 2024-06-21, compared to the national average (all FHA variants) of 0% for the same period.

Lancaster's average FHA mortgage closing costs are $8,264.

The average rate for the prior week (2024-06-14) was 6.8% and one month ago for the week of 2024-05-17, the average rate was 6.55%.

The average rate one year ago was 6.43%.

For refis of the same type during the week of 2024-06-21, the average rate was -0.06%.

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/closing costs and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Lancaster level.

Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
QUICKEN LOANS, LLC 104 6.23% $11,631
UNITED WHOLESALE MORTGAGE, LLC 43 6.23% $13,539
GUILD MORTGAGE COMPANY 37 6.71% $11,613
BROKER SOLUTIONS, INC. 29 6.70% $13,882
CROSSCOUNTRY MORTGAGE, LLC 28 6.70% $13,415
York Traditions Bank 22 6.47% $10,775
LOANDEPOT.COM, LLC 20 6.40% $11,530
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 19 6.66% $10,805
EMM LOANS LLC 18 6.58% $10,331
Fulton Bank 17 6.10% $10,944
PENNYMAC LOAN SERVICES, LLC 15 5.90% $13,004
Mr. Cooper ( Nationstar Mortgage ) 14 5.97% $13,769
FREEDOM MORTGAGE CORPORATION 14 7.03% $14,511
NEWREZ LLC 12 6.35% $14,132
MOVEMENT MORTGAGE, LLC 12 6.63% $11,691
GUARANTEED RATE, INC. 10 6.35% $11,675
Citizens Bank 10 6.29% $12,183
Carrington Mortgage Services, LLC 10 6.36% $11,264
AMERISAVE MORTGAGE CORPORATION 8 6.39% $13,939
Meridian Bank Corporation 7 6.20% $12,419
Homesale Mortgage, LLC 7 7.05% $10,063
AmeriHome Mortgage Company, LLC 7 6.13% $11,274
CMG MORTGAGE, INC. 6 6.67% $14,732
Univest Bank and Trust Co. 5 6.05% $12,551
NFM, INC. 5 6.78% $13,916
MUTUAL OF OMAHA MORTGAGE, INC. 4 6.44% $16,375
FIRST ALLIANCE HOME MORTGAGE, LLC 4 6.94% $14,785
Paramount Residential Mortgage Group, Inc. 4 6.94% $13,588
Sierra Pacific Mortgage Company, Inc. 4 6.66% $9,232
SUCCESS MORTGAGE PARTNERS, INC. 4 6.53% $11,727
UNION HOME MORTGAGE CORP. 4 6.59% $10,545
LOANPAL, LLC 4 5.56% $14,719
CONTOUR MORTGAGE CORPORATION 4 6.34% $12,389
Truist 3 5.79% $8,747
Equity Prime Mortgage LLC 3 6.17% $14,480
Keystone Funding, Inc. 3 6.04% $14,784
ALLIED MORTGAGE GROUP, INC. 3 6.21% $15,241
VILLAGE CAPITAL MORTGAGE 3 6.71% $12,720
Wells Fargo Bank 3 6.96% $8,454
AMERICAN FINANCIAL NETWORK, INC. 3 6.46% $13,979
CARDINAL FINANCIAL 3 6.21% $8,203
Mid Penn Bank 3 6.71% $12,330
M&T Bank 3 6.17% $11,590
Northpointe Bank 3 6.33% $13,827
EMBRACE HOME LOANS, INC. 3 6.25% $13,735
TOP FLITE FINANCIAL, INC. 3 7.17% $14,570
LAKEVIEW LOAN SERVICING, LLC 3 5.88% $11,203
HOMESIDE FINANCIAL, LLC 2 7.00% $14,305
Orrstown Bank 2 6.75% $9,964
MILEND, INC. 2 6.56% $15,885
PRIMARY RESIDENTIAL MORTGAGE, INC. 2 7.25% $14,274
AMERICAN FINANCING CORPORATION 2 6.31% $13,519
MORTGAGE SOLUTIONS OF COLORADO, LLC 2 6.25% $11,311
PNC Bank 2 7.00% $14,238
GUARANTEED RATE AFFINITY, LLC 2 7.20% $10,376
TIDEWATER MORTGAGE SERVICES, INC. 2 6.31% $12,105
Plains Commerce Bank 2 6.25% $14,969
HOWARD HANNA FINANCIAL SERVICES, INC. 2 6.38% $10,024
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 2 7.31% $13,649
RELIANCE FIRST CAPITAL, LLC 2 6.06% $16,826
Alcova Mortgage LLC 2 6.75% $14,204
GSF Mortgage Corporation 2 6.88% $12,779
RADIUS FINANCIAL GROUP INC. 2 6.94% $13,211
Flagstar Bank, FSB 2 6.69% $9,862
MEMBERS 1ST FEDERAL CREDIT UNION 2 6.38% $10,303
ZILLOW HOME LOANS, LLC 1 6.00% $9,935
AMERICAN FINANCIAL RESOURCES, INC. 1 6.50% $12,468
AMERICAN PACIFIC MORTGAGE CORPORATION 1 6.75% $18,669
ARC HOME LLC 1 7.13% $14,633
FIRST HERITAGE FINANCIAL, LLC 1 6.49% $7,144
HOMEBRIDGE FINANCIAL SERVICES, INC. 1 5.88% $12,561
HOMESPIRE MORTGAGE CORPORATION 1 6.88% $12,407
JPMorgan Chase Bank 1 5.75% $14,061
Lakeview Community Capital, LLC 1 5.75% $12,556
LENDING CAPITAL GROUP Inc 1 6.13% $9,645
Magnolia Bank 1 7.25% $13,217
MDE Home Loans, LLC 1 6.75% $14,811
MEMBER FIRST MORTGAGE, LLC 1 7.50% $7,330
Mortgage America, Inc. 1 5.75% $8,345
Mortgage Research Center, LLC 1 8.13% $9,771
NATION ONE MORTGAGE CORPORATION 1 6.63% $18,037
NATIONS DIRECT MORTGAGE, LLC 1 6.63% $21,561
Nations Lending Corporation 1 7.38% $8,360
NETWORK CAPITAL FUNDING CORPORATION 1 5.38% $12,597
Network Funding, L.P. 1 6.25% $15,696
NEW DAY FINANCIAL, LLC 1 7.99% $15,799
NexBank 1 7.25% $10,470
NJ LENDERS CORP. 1 7.13% $11,204
Northwest Bank 1 5.75% $12,015
NVR Mortgage Finance, Inc. 1 4.25% $11,562
PHH Mortgage Corporation 1 5.63% $13,938
PIKE CREEK MORTGAGE SERVICES, INC. 1 6.63% $15,918
PINNACLE MORTGAGE, INC. 1 5.75% $11,361
PLANET HOME LENDING, LLC 1 7.25% $20,936
PLAZA HOME MORTGAGE, INC. 1 5.25% $26,365
POLARIS HOME FUNDING CORP. 1 6.50% $16,201
PREMIA MORTGAGE, LLC 1 5.75% $6,586
PRIMELENDING, A PLAINSCAPITAL COMPANY 1 6.25% $17,091
Prosperity Home Mortgage, LLC 1 7.12% $9,131
ROYAL UNITED MORTGAGE LLC 1 6.75% $18,375
RUOFF MORTGAGE COMPANY, INC. 1 5.38% $9,306
SUN WEST MORTGAGE COMPANY, INC. 1 6.25% $21,211
T2 FINANCIAL LLC 1 6.25% $13,844
TD Bank 1 6.38% $8,645
Towne Bank 1 6.50% $17,806
Advisors Mortgage Group, L.L.C. 1 6.50% $13,728

The top Lancaster FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 104 FHA loans originated. Their average total fees are $11,631, which is $1,908 lower than the next largest lender, UNITED WHOLESALE MORTGAGE, LLC.

The lowest fee Lancaster FHA lenders (with over 10 loans originated) are EMM LOANS LLC ($10,331), York Traditions Bank ($10,775), FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($10,805), Fulton Bank ($10,944) and Carrington Mortgage Services, LLC ($11,264).

The lowest rate Lancaster FHA lenders (with over 10 loans originated) are PENNYMAC LOAN SERVICES, LLC (5.90%), Mr. Cooper ( Nationstar Mortgage ) (5.97%), Fulton Bank (6.10%), UNITED WHOLESALE MORTGAGE, LLC (6.23%) and QUICKEN LOANS, LLC (6.23%).

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
LANCASTER, PA LANCASTER 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).