Lynchburg FHA Loans

LYNCHBURG, VA

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.

Lynchburg's 106 lenders originated 1,314 FHA loans during 2021. The total origination value was $278,200,000, with an average FHA loan value of $211,720.

Lynchburg FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Lynchburg averaged 5.14% for the week of 2022-05-20, compared to the national average (all FHA variants) of 5.352% for the same period.

The average rate for the prior week (2022-05-13) was 5.35% and one month ago for the week of 2022-04-15, the average rate was 4.94%.

The average rate one year ago was 2.91%.

For refis of the same type during the week of 2022-05-20, the average rate was 4.86%.

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

Lynchburg 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 Lynchburg level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
EMBRACE HOME LOANS, INC. 144 3.07% $6,619
MOVEMENT MORTGAGE, LLC 139 3.08% $6,468
QUICKEN LOANS, LLC 118 2.72% $6,038
NATION ONE MORTGAGE CORPORATION 69 3.24% $7,592
FREEDOM MORTGAGE CORPORATION 55 2.82% $4,391
APEX HOME LOANS, INC. 51 2.95% $6,672
ATLANTIC BAY MORTGAGE GROUP, L.L.C. 45 3.23% $7,260
LAKEVIEW LOAN SERVICING, LLC 38 3.12% $3,860
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 33 2.91% $8,376
ROUNDPOINT MORTGAGE SERVICING CORPORATION 27 3.29% $4,917
Mr. Cooper ( Nationstar Mortgage ) 26 3.33% $4,033
UNITED WHOLESALE MORTGAGE, LLC 24 2.61% $6,639
Integrity Home Mortgage Corp 22 3.18% $7,268
Alcova Mortgage LLC 22 3.15% $5,017
PENNYMAC LOAN SERVICES, LLC 20 2.99% $4,994
Renasant Bank 18 2.91% $7,773
Prosperity Home Mortgage, LLC 16 3.15% $6,475
CALIBER HOME LOANS, INC. 12 2.63% $5,170
OVM FINANCIAL, INC. 12 3.08% $7,717
AMERICAN FINANCIAL RESOURCES, INC. 11 3.28% $8,368
MCLEAN MORTGAGE CORPORATION 11 3.08% $6,343
AMERISAVE MORTGAGE CORPORATION 11 3.02% $7,161
TIDEWATER MORTGAGE SERVICES, INC. 9 3.29% $8,935
SWBC MORTGAGE CORPORATION 8 3.28% $5,905
Assurance Financial Group, L.L.C. 8 2.95% $8,127
LOANDEPOT.COM, LLC 8 3.09% $7,683
Atlantic Union Bank 7 3.36% $7,673
BROKER SOLUTIONS, INC. 7 2.77% $8,434
HOMEBRIDGE FINANCIAL SERVICES, INC. 7 2.52% $4,574
VANDERBILT MORTGAGE AND FINANCE, INC. 6 3.69% $8,550
Truist Bank 5 2.90% $6,902
Carrington Mortgage Services, LLC 5 3.33% $4,680
C & F Mortgage Corporation 5 3.63% $6,458
NEWREZ LLC 5 2.90% $6,139
Waterstone Mortgage Corporation 5 3.00% $7,598
Lakeview Community Capital, LLC 5 3.19% $3,290
Citizens Bank 4 2.69% $9,113
Mortgage Research Center, LLC 4 3.19% $3,495
AMERICAN PACIFIC MORTGAGE CORPORATION 4 3.31% $8,240
FREEDOM FIRST 4 2.44% $5,874
First Guaranty Mortgage Corporation 4 3.31% $4,119
INTERCOASTAL MORTGAGE COMPANY 3 3.13% $7,328
Paramount Residential Mortgage Group, Inc. 3 3.13% $9,622
PLANET HOME LENDING, LLC 3 2.79% $4,785
PRIMARY RESIDENTIAL MORTGAGE, INC. 3 3.71% $8,860
GUARANTY HOME MORTGAGE CORPORATION 3 2.71% $11,619
STEARNS LENDING, LLC 3 2.25% $7,846
HOME POINT FINANCIAL CORPORATION 3 2.67% $7,175
HOMESIDE FINANCIAL, LLC 3 3.25% $8,203
THRIVE MORTGAGE, LLC 3 3.38% $8,198
AMERICAN FINANCIAL NETWORK, INC. 3 2.46% $8,530
Blue Ridge Bank 3 2.67% $7,429
MUTUAL OF OMAHA MORTGAGE, INC. 3 3.42% $7,427
VILLAGE CAPITAL & INVESTMENT LLC 2 2.88% $2,333
OCEANSIDE MORTGAGE COMPANY 2 2.94% $3,196
MORIA DEVELOPMENT, INC. 2 3.00% $11,687
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 2 3.43% $5,565
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 2 2.88% $5,254
AmeriHome Mortgage Company, LLC 2 3.13% $3,222
CBM Mortgage, Inc. 2 3.13% $6,008
CROSSCOUNTRY MORTGAGE, LLC 2 3.56% $6,443
American National Bank and Trust Company 2 2.63% $8,413
MICHIGAN MUTUAL, INC. 2 3.13% $9,491
SOUTHERN TRUST MORTGAGE, LLC 2 3.25% $6,794
SOUTHWEST STAGE FUNDING, LLC 2 3.25% $5,593
NFM, INC. 2 3.44% $9,782
F & M BANK CORP. 2 3.88% $6,782
Barrington Bank & Trust Company, N.A. 2 3.25% $11,267
Nations Lending Corporation 1 3.25% $11,526
ENVOY MORTGAGE, LTD 1 2.50% $9,516
FAMILY FIRST FUNDING LLC 1 3.38% $7,560
First-Citizens Bank & Trust Company 1 2.38% $6,971
First Federal Bank 1 2.75% $17,553
First Savings Bank 1 3.63% $9,048
Flagstar Bank, FSB 1 2.54% $3,423
George Mason Mortgage, LLC 1 2.99% $9,752
GUARANTEED RATE, INC. 1 3.75% $10,006
ZILLOW HOME LOANS, LLC 1 2.88% $7,526
Hometown Equity Mortgage, LLC 1 4.25% $5,251
Chickasaw Community Bank 1 2.88% $6,332
KELLER MORTGAGE, LLC 1 3.13% $7,513
LIBERTY HOME MORTGAGE CORPORATION 1 3.25% $7,249
LOANPAL, LLC 1 2.75% $9,407
MID AMERICA MORTGAGE, INC. 1 3.38% $1,920
MIDLAND MORTGAGE CORPORATION 1 3.50% $7,058
MILEND, INC. 1 2.88% $10,376
CAPITAL CENTER, L.L.C. 1 2.88% $2,616
BETTER MORTGAGE CORPORATION 1 2.25% $11,970
Commerce Home Mortgage, Inc. 1 2.75% $7,124
North American Savings Bank, F.S.B. 1 3.13% $5,055
Northpointe Bank 1 4.25% $9,864
BAYSHORE MORTGAGE FUNDING, LLC 1 2.88% $4,142
PLAZA HOME MORTGAGE, INC. 1 2.25% $8,118
PRIMELENDING, A PLAINSCAPITAL COMPANY 1 2.75% $17,046
RELIANCE FIRST CAPITAL, LLC 1 2.63% $7,542
ROYAL UNITED MORTGAGE LLC 1 2.38% $10,507
Sierra Pacific Mortgage Company, Inc. 1 3.00% $8,954
SUN WEST MORTGAGE COMPANY, INC. 1 2.75% $6,073
AMERICAN FINANCING CORPORATION 1 3.88% $11,453
The Federal Savings Bank 1 2.75% $12,770
Tidewater Home Funding, LLC 1 3.88% $8,950
Towne Bank 1 3.13% $6,336
TOWNE MORTGAGE COMPANY 1 2.49% $10,367
United Fidelity Funding Corp. 1 3.25% $7,242
ALLIED MORTGAGE GROUP, INC. 1 3.25% $6,042
Virginia Credit Union, Inc. 1 3.50% $5,866

The top Lynchburg FHA lender as defined by loan originations is EMBRACE HOME LOANS, INC., with 144 FHA loans originated. Their average total fees are $6,619, which is $152 higher than the next largest lender, MOVEMENT MORTGAGE, LLC.

The lowest fee Lynchburg FHA lenders (with over 10 loans originated) are LAKEVIEW LOAN SERVICING, LLC ($3,860), Mr. Cooper ( Nationstar Mortgage ) ($4,033), FREEDOM MORTGAGE CORPORATION ($4,391), ROUNDPOINT MORTGAGE SERVICING CORPORATION ($4,917) and PENNYMAC LOAN SERVICES, LLC ($4,994).

The lowest rate Lynchburg FHA lenders (with over 10 loans originated) are UNITED WHOLESALE MORTGAGE, LLC (2.61%), CALIBER HOME LOANS, INC. (2.63%), QUICKEN LOANS, LLC (2.72%), FREEDOM MORTGAGE CORPORATION (2.82%) and Renasant Bank (2.91%).

Lynchburg FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
LYNCHBURG, VA AMHERST 2022 $420,680 $538,650 $651,050 $809,150
LYNCHBURG, VA APPOMATTOX 2022 $420,680 $538,650 $651,050 $809,150
LYNCHBURG, VA BEDFORD 2022 $420,680 $538,650 $651,050 $809,150
LYNCHBURG, VA CAMPBELL 2022 $420,680 $538,650 $651,050 $809,150
LYNCHBURG, VA LYNCHBURG CITY 2022 $420,680 $538,650 $651,050 $809,150

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).