Mcallen FHA Loan Rates, Closing Costs & Stats

MCALLEN-EDINBURG-MISSION, TX

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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.

    Mcallen's 91 lenders originated 2,255 FHA loans during 2023. The total origination value was $560,055,000, with an average FHA loan value of $248,361.

    Mcallen FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Mcallen averaged 6.52% for the week of 2024-11-08, compared to the national average (all FHA variants) of 6.425% for the same period.

    Mcallen's average FHA mortgage closing costs are $9,382.

    The average rate for the prior week (2024-11-01) was 6.59% and one month ago for the week of 2024-10-04, the average rate was 6.01%.

    The average rate one year ago was 7.45%.

    For refis of the same type during the week of 2024-11-08, the average rate was 6.51%.

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

    Mcallen 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 Mcallen level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    CROSSCOUNTRY MORTGAGE, LLC 240 6.52% $14,250
    WILLOW BEND MORTGAGE COMPANY, LLC 212 6.55% $17,210
    AMCAP MORTGAGE, LTD. 151 6.83% $12,407
    UNITED WHOLESALE MORTGAGE, LLC 131 6.13% $13,215
    ASCENT HOME LENDING, LLC 121 6.35% $14,929
    MOVEMENT MORTGAGE, LLC 120 6.39% $13,485
    CMG MORTGAGE, INC. 101 6.93% $14,051
    Nations Lending Corporation 74 6.79% $10,079
    NATIONS RELIABLE LENDING, LLC 72 6.09% $16,093
    Paramount Residential Mortgage Group, Inc. 69 6.24% $13,163
    QUICKEN LOANS, LLC 63 6.23% $12,071
    DIRECTIONS EQUITY, LLC 61 6.60% $10,930
    HOMESIDE FINANCIAL, LLC 56 6.46% $12,585
    EUSTIS AND AMERICAN MORTGAGE COMPANY 55 6.56% $11,819
    ACADEMY MORTGAGE CORPORATION 42 6.23% $12,126
    PLAZA HOME MORTGAGE, INC. 34 6.30% $11,983
    S1L, Inc. 24 6.65% $11,849
    DAS Acquisition Company, LLC 24 6.60% $11,136
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 23 6.83% $12,899
    FREEDOM MORTGAGE CORPORATION 21 6.03% $13,674
    AMERICAN PACIFIC MORTGAGE CORPORATION 18 6.73% $10,138
    SUN WEST MORTGAGE COMPANY, INC. 17 6.24% $12,427
    Town Square Mortgage & Investments, Inc. 14 6.97% $12,785
    PENNYMAC LOAN SERVICES, LLC 13 6.11% $13,665
    PRIMARY RESIDENTIAL MORTGAGE, INC. 13 6.54% $13,034
    Flagstar Bank, FSB 10 6.40% $12,397
    CARDINAL FINANCIAL 10 6.21% $12,227
    THRIVE MORTGAGE, LLC 10 6.73% $12,321
    EVERETT FINANCIAL, INC. 8 6.47% $10,230
    BROKER SOLUTIONS, INC. 7 6.86% $13,427
    Lone Star National Bank 7 6.71% $13,116
    Equity Prime Mortgage LLC 7 7.25% $13,459
    Gateway First Bank 6 6.67% $11,726
    AMERICAN FINANCIAL NETWORK, INC. 5 7.43% $15,992
    LOANDEPOT.COM, LLC 5 6.85% $14,217
    LAND HOME FINANCIAL SERVICES, INC. 5 6.63% $11,392
    NEWREZ LLC 5 6.60% $15,306
    LEADERONE FINANCIAL CORPORATION 4 7.09% $12,405
    Plains Commerce Bank 4 7.09% $10,371
    U.S. Bank 4 6.65% $11,208
    HALLMARK HOME MORTGAGE, LLC 4 6.81% $17,305
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 4 6.25% $11,398
    INTERLINC MORTGAGE SERVICES, LLC 4 7.34% $17,112
    PLANET HOME LENDING, LLC 4 5.90% $9,082
    Loan Simple, Inc. 3 6.33% $11,175
    CALCON MUTUAL MORTGAGE LLC 3 7.25% $13,243
    Carrington Mortgage Services, LLC 3 6.50% $14,912
    CHURCHILL MORTGAGE CORPORATION 3 6.83% $12,342
    GUARANTEED RATE, INC. 3 6.42% $10,910
    MORTGAGE FINANCIAL SERVICES, LLC 3 6.67% $15,861
    PNC Bank 3 6.42% $7,818
    PRIMELENDING, A PLAINSCAPITAL COMPANY 3 5.79% $12,389
    SECURITYNATIONAL MORTGAGE COMPANY 3 6.71% $9,288
    UNION HOME MORTGAGE CORP. 3 7.13% $16,934
    TIB The Independent Bankersbank 2 6.56% $7,131
    AMERICAN FINANCIAL RESOURCES, INC. 2 6.75% $6,898
    First National Bank Texas 2 6.88% $11,113
    Bank of England 2 7.25% $10,822
    DRAPER AND KRAMER MORTGAGE CORP. 2 5.94% $10,349
    MANN FINANCIAL INC. 2 6.00% $11,629
    Mortgage Research Center, LLC 2 7.19% $7,557
    The Loan Store, Inc. 2 7.00% $12,890
    CORNERSTONE HOME LENDING, INC. 2 6.50% $9,345
    GUILD MORTGAGE COMPANY 1 6.38% $8,006
    PENTAGON FEDERAL CREDIT UNION 1 5.63% $12,496
    First United Bank and Trust Company 1 6.38% $19,542
    VILLAGE CAPITAL MORTGAGE 1 7.25% $3,716
    Wells Fargo Bank 1 6.63% $7,714
    CANOPY MORTGAGE, LLC 1 8.00% $21,296
    RESIDENTIAL BANCORP 1 6.75% $9,406
    BECKAM FUNDING CORP. 1 6.25% $14,001
    Sunflower Bank 1 6.49% $14,969
    T2 FINANCIAL LLC 1 8.25% $5,725
    The Federal Savings Bank 1 6.13% $8,820
    Bank of America 1 5.75% $13,169
    AMERISAVE MORTGAGE CORPORATION 1 6.25% $10,981
    ZILLOW HOME LOANS, LLC 1 7.00% $8,027
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 1 6.75% $19,463
    MID AMERICA MORTGAGE, INC. 1 5.50% $6,500
    AMERICAN FINANCING CORPORATION 1 6.75% $10,982
    MORTGAGE SOLUTIONS OF COLORADO, LLC 1 7.63% $12,547
    NATIONS DIRECT MORTGAGE, LLC 1 5.75% $11,104
    MICHIGAN MUTUAL, INC. 1 7.13% $11,719
    HOMEXPRESS MORTGAGE CORP. 1 6.50% $18,781
    Neighborhood Loans, Inc. 1 6.99% $8,754
    Network Funding, L.P. 1 6.75% $10,585
    Hometown Equity Mortgage, LLC 1 7.25% $22,063
    NJ LENDERS CORP. 1 5.50% $12,117
    OCMBC, INC. 1 6.88% $18,478
    Origin Bank 1 5.75% $9,529
    HOME FUNDING CORPORATION 1 6.50% $25,552

    The top Mcallen FHA lender as defined by loan originations is CROSSCOUNTRY MORTGAGE, LLC, with 240 FHA loans originated. Their average total fees are $14,250, which is $2,959 lower than the next largest lender, WILLOW BEND MORTGAGE COMPANY, LLC.

    The lowest fee Mcallen FHA lenders (with over 10 loans originated) are Nations Lending Corporation ($10,079), AMERICAN PACIFIC MORTGAGE CORPORATION ($10,138), DIRECTIONS EQUITY, LLC ($10,930), DAS Acquisition Company, LLC ($11,136) and EUSTIS AND AMERICAN MORTGAGE COMPANY ($11,819).

    The lowest rate Mcallen FHA lenders (with over 10 loans originated) are FREEDOM MORTGAGE CORPORATION (6.03%), NATIONS RELIABLE LENDING, LLC (6.09%), PENNYMAC LOAN SERVICES, LLC (6.11%), UNITED WHOLESALE MORTGAGE, LLC (6.13%) and CARDINAL FINANCIAL (6.21%).

    Mcallen FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    MCALLEN-EDINBURG-MISSION, TX HIDALGO 2022 $420,680 $538,650 $651,050 $809,150
    MCALLEN-EDINBURG-MISSION, TX HIDALGO 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).