Mankato FHA Loan Rates, Closing Costs & Stats

MANKATO, MN

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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.

    Mankato's 38 lenders originated 136 FHA loans during 2023. The total origination value was $31,400,000, with an average FHA loan value of $230,882.

    Mankato FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Mankato averaged 6.69% for the week of 2024-11-08, compared to the national average (all FHA variants) of 6.425% for the same period.

    Mankato's average FHA mortgage closing costs are $7,290.

    The average rate for the prior week (2024-11-01) was 6.26% and one month ago for the week of 2024-10-04, the average rate was 6.08%.

    The average rate one year ago was 7.33%.

    For refis of the same type during the week of 2024-11-08, the average rate was 6.23%.

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

    Mankato 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 Mankato level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    UNITED WHOLESALE MORTGAGE, LLC 40 6.51% $10,088
    CROSSCOUNTRY MORTGAGE, LLC 16 6.61% $10,999
    QUICKEN LOANS, LLC 11 6.48% $10,830
    Plains Commerce Bank 5 7.33% $9,254
    BROKER SOLUTIONS, INC. 5 6.83% $11,017
    Bremer Bank 5 6.10% $10,654
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 4 6.59% $8,897
    LAKEVIEW LOAN SERVICING, LLC 3 6.33% $10,961
    PLAZA HOME MORTGAGE, INC. 3 6.58% $7,421
    LOANDEPOT.COM, LLC 3 6.88% $12,407
    CRESCENT MORTGAGE COMPANY 3 6.46% $6,946
    Alerus Financial 2 6.69% $8,887
    FREEDOM MORTGAGE CORPORATION 2 6.62% $10,113
    Home Federal Savings Bank 2 6.94% $8,367
    PENNYMAC LOAN SERVICES, LLC 2 6.38% $11,002
    Prosperity Home Mortgage, LLC 2 7.25% $7,170
    HOMEBRIDGE FINANCIAL SERVICES, INC. 1 6.13% $9,602
    Bell Bank 1 6.25% $6,770
    JPMorgan Chase Bank 1 5.99% $14,176
    Equity Prime Mortgage LLC 1 7.75% $9,632
    Chickasaw Community Bank 1 6.63% $6,431
    MUTUAL OF OMAHA MORTGAGE, INC. 1 6.75% $7,046
    NBKC BANK 1 6.38% $7,592
    Old National Bank 1 6.63% $6,096
    Paramount Residential Mortgage Group, Inc. 1 6.75% $8,622
    U.S. Bank 1 7.25% $7,445
    Carrington Mortgage Services, LLC 1 6.63% $11,331
    CARDINAL FINANCIAL 1 6.13% $8,949
    Wells Fargo Bank 1 7.38% $6,605
    Cambria Financial Group, LLC 1 6.99% $9,659
    Royal Credit Union 1 6.63% $11,660
    Servion, Inc. 1 6.25% $8,669
    Sierra Pacific Mortgage Company, Inc. 1 6.38% $13,053
    Summit Mortgage Corporation 1 7.00% $7,202
    First Federal Bank 1 6.63% $10,473
    First National Bank of Omaha 1 5.63% $11,402
    The Huntington National Bank 1 6.13% $8,174
    GUARANTEED RATE, INC. 1 6.75% $9,059

    The top Mankato FHA lender as defined by loan originations is UNITED WHOLESALE MORTGAGE, LLC, with 40 FHA loans originated. Their average total fees are $10,088, which is $911 lower than the next largest lender, CROSSCOUNTRY MORTGAGE, LLC.

    The lowest fee Mankato FHA lenders (with over 10 loans originated) are UNITED WHOLESALE MORTGAGE, LLC ($10,088), QUICKEN LOANS, LLC ($10,830), CROSSCOUNTRY MORTGAGE, LLC ($10,999), .

    The lowest rate Mankato FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (6.48%), UNITED WHOLESALE MORTGAGE, LLC (6.51%), CROSSCOUNTRY MORTGAGE, LLC (6.61%), .

    Mankato FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    MANKATO, MN BLUE EARTH 2022 $420,680 $538,650 $651,050 $809,150
    MANKATO, MN NICOLLET 2022 $420,680 $538,650 $651,050 $809,150
    MANKATO, MN BLUE EARTH 2023 $472,030 $604,400 $730,525 $907,900
    MANKATO, MN NICOLLET 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).