Montgomery FHA Loans

MONTGOMERY, AL

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.

Montgomery's 121 lenders originated 2,141 FHA loans during 2021. The total origination value was $376,315,000, with an average FHA loan value of $175,766.

Montgomery FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Montgomery averaged 5.21% 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 5.52% and one month ago for the week of 2022-04-15, the average rate was 4.91%.

The average rate one year ago was 2.98%.

For refis of the same type during the week of 2022-05-20, the average rate was 5.18%.

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

Montgomery 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 Montgomery level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
GUILD MORTGAGE COMPANY 277 3.31% $7,221
QUICKEN LOANS, LLC 210 2.70% $5,400
Trustmark National Bank 174 2.73% $6,615
CROSSCOUNTRY MORTGAGE, LLC 157 3.25% $7,356
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 135 3.13% $6,025
INTERLINC MORTGAGE SERVICES, LLC 84 3.39% $4,743
CMG MORTGAGE, INC. 73 3.30% $8,394
BAY EQUITY LLC 72 3.11% $6,791
UNITED WHOLESALE MORTGAGE, LLC 60 2.84% $6,188
LAKEVIEW LOAN SERVICING, LLC 53 3.06% $4,013
PENNYMAC LOAN SERVICES, LLC 47 3.12% $3,974
GMFS LLC 37 2.92% $4,558
CERTAINTY HOME LOANS, LLC 37 2.82% $7,247
FREEDOM MORTGAGE CORPORATION 37 2.82% $3,800
Renasant Bank 36 2.99% $6,119
Regions Bank 28 2.90% $5,785
SouthPoint Bank 27 2.88% $4,270
CALIBER HOME LOANS, INC. 26 3.18% $4,849
VILLAGE CAPITAL & INVESTMENT LLC 24 3.09% $2,091
Mr. Cooper ( Nationstar Mortgage ) 23 3.40% $2,399
Hometown Lenders, Inc. 17 3.48% $9,294
NEWREZ LLC 13 2.95% $3,914
Hamilton Mortgage Corporation 10 2.85% $4,654
LOANDEPOT.COM, LLC 10 3.62% $9,283
Carrington Mortgage Services, LLC 9 3.22% $5,385
Consumer First Mortgage, Inc. 8 2.59% $7,448
AmeriHome Mortgage Company, LLC 8 2.94% $5,255
BROKER SOLUTIONS, INC. 8 3.17% $6,530
Mortgage Research Center, LLC 8 3.20% $3,949
AMERISAVE MORTGAGE CORPORATION 7 2.75% $8,280
DHI MORTGAGE COMPANY, LTD. 7 2.96% $6,570
Northpointe Bank 6 3.06% $6,600
HOMEBRIDGE FINANCIAL SERVICES, INC. 6 2.63% $4,316
HOME POINT FINANCIAL CORPORATION 6 2.83% $7,802
FirstBank 5 3.13% $5,375
PLANET HOME LENDING, LLC 5 2.80% $3,429
Barrington Bank & Trust Company, N.A. 5 3.43% $6,580
Synovus Bank 5 3.08% $7,631
VANDERBILT MORTGAGE AND FINANCE, INC. 5 3.25% $7,111
First Guaranty Mortgage Corporation 4 2.66% $5,539
Cadence Bank, N.A. 4 2.78% $6,869
TJC Mortgage, Inc. 4 3.34% $9,542
MORTGAGE MANAGEMENT CONSULTANTS, INC. 4 3.31% $3,732
Nations Lending Corporation 4 3.13% $7,323
MOVEMENT MORTGAGE, LLC 3 3.17% $6,054
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 3 2.91% $10,739
MICHIGAN MUTUAL, INC. 3 3.08% $6,216
MID AMERICA MORTGAGE, INC. 3 2.79% $1,913
Ameris Bank 3 3.00% $7,185
GUARANTEED RATE AFFINITY, LLC 3 2.50% $6,688
Flagstar Bank, FSB 3 2.71% $5,111
A Mortgage Boutique, LLC 3 2.58% $5,315
MUTUAL OF OMAHA MORTGAGE, INC. 3 3.13% $8,367
LEADERONE FINANCIAL CORPORATION 3 3.79% $6,494
FIRST COMMUNITY MORTGAGE, INC. 3 2.92% $6,085
Manufacturers and Traders Trust Company 2 3.25% $5,187
MIDLAND MORTGAGE CORPORATION 2 4.13% $8,247
CIS Financial Services, Inc. 2 3.56% $6,888
BancorpSouth Bank 2 2.81% $5,981
First Home Bank 2 3.13% $8,896
Valley National Bank 2 2.94% $7,287
UNION HOME MORTGAGE CORP. 2 2.94% $10,399
Wolfe Financial, Inc 2 3.06% $8,456
AMERICAN FINANCIAL NETWORK, INC. 2 2.94% $11,720
Gateway First Bank 2 3.00% $3,364
GSF Mortgage Corporation 2 3.38% $10,006
RELIANCE FIRST CAPITAL, LLC 2 2.81% $12,593
Prosperity Home Mortgage, LLC 2 3.19% $5,797
Bank of England 2 2.94% $6,940
HOMESIDE FINANCIAL, LLC 2 2.88% $6,289
HOMESTAR FINANCIAL CORPORATION 2 3.38% $6,205
OCEANSIDE MORTGAGE COMPANY 2 3.06% $3,591
AMERICAN FINANCING CORPORATION 2 2.75% $7,563
LIBERTY HOME MORTGAGE CORPORATION 2 3.25% $5,923
Magnolia Bank 2 2.88% $8,377
ZILLOW HOME LOANS, LLC 1 2.75% $7,263
AMERICAN PACIFIC MORTGAGE CORPORATION 1 3.00% $14,834
AMERIFIRST FINANCIAL CORPORATION 1 3.50% $7,377
ANGEL OAK HOME LOANS LLC 1 3.25% $5,633
BBVA USA 1 2.75% $2,957
BETTER MORTGAGE CORPORATION 1 2.25% $9,803
Capital City Home Loans, LLC 1 3.50% $5,341
Christensen Financial, Inc. 1 3.00% $5,937
CHURCHILL MORTGAGE CORPORATION 1 3.38% $6,431
CityWorth Mortgage LLC 1 2.88% $5,908
CORNERSTONE HOME LENDING, INC. 1 3.25% $9,349
CRESCENT MORTGAGE COMPANY 1 2.63% $5,821
DIRECT MORTGAGE LOANS, LLC 1 2.50% $8,154
ENVOY MORTGAGE, LTD 1 2.75% $6,991
EVANSVILLE TEACHERS 1 2.25% $8,277
EVERETT FINANCIAL, INC. 1 3.63% $4,905
FAY SERVICING, LLC 1 3.25% $3,640
First Community Bank 1 2.75% $5,288
First Federal Bank, A FSB 1 3.00% $3,547
F&M Bank 1 2.75% $7,657
Goldwater Bank, N.A. 1 2.63% $8,424
GUARANTEED RATE, INC. 1 3.25% $5,334
InterContinental Capital Group, Inc 1 2.25% $7,579
LENDUS, LLC 1 3.75% $8,538
MILEND, INC. 1 2.38% $10,448
MLD MORTGAGE INC. 1 2.75% $8,716
MORTGAGE SOLUTIONS OF COLORADO, LLC 1 3.25% $6,902
PACIFIC RESIDENTIAL MORTGAGE, LLC 1 3.75% $5,637
Peoples Bank 1 3.63% $8,083
PLAZA HOME MORTGAGE, INC. 1 3.00% $4,867
PNC Bank 1 3.13% $2,960
PRIMARY RESIDENTIAL MORTGAGE, INC. 1 3.13% $4,133
ROYAL UNITED MORTGAGE LLC 1 2.88% $7,662
RUOFF MORTGAGE COMPANY, INC. 1 3.38% $3,680
SOUTHPOINT FINANCIAL SERVICES, INC. 1 3.00% $6,988
South State Bank 1 2.25% $7,480
SOUTHWEST FUNDING, LP 1 3.25% $7,998
SOVEREIGN LENDING GROUP INCORPORATED 1 3.13% $7,717
STEARNS LENDING, LLC 1 2.25% $5,186
SUN WEST MORTGAGE COMPANY, INC. 1 2.75% $4,737
T2 FINANCIAL LLC 1 3.75% $7,462
TOWNE MORTGAGE COMPANY 1 4.00% $5,665
Truist Bank 1 3.20% $4,545
UNITED MORTGAGE CORP. 1 3.13% $4,890
UNIVERSITY LENDING GROUP, LLC 1 2.50% $9,027
Victorian Finance, LLC 1 3.63% $8,403

The top Montgomery FHA lender as defined by loan originations is GUILD MORTGAGE COMPANY, with 277 FHA loans originated. Their average total fees are $7,221, which is $1,821 higher than the next largest lender, QUICKEN LOANS, LLC.

The lowest fee Montgomery FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL & INVESTMENT LLC ($2,091), Mr. Cooper ( Nationstar Mortgage ) ($2,399), FREEDOM MORTGAGE CORPORATION ($3,800), NEWREZ LLC ($3,914) and PENNYMAC LOAN SERVICES, LLC ($3,974).

The lowest rate Montgomery FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (2.70%), Trustmark National Bank (2.73%), CERTAINTY HOME LOANS, LLC (2.82%), FREEDOM MORTGAGE CORPORATION (2.82%) and UNITED WHOLESALE MORTGAGE, LLC (2.84%).

Montgomery FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
MONTGOMERY, AL AUTAUGA 2022 $420,680 $538,650 $651,050 $809,150
MONTGOMERY, AL ELMORE 2022 $420,680 $538,650 $651,050 $809,150
MONTGOMERY, AL LOWNDES 2022 $420,680 $538,650 $651,050 $809,150
MONTGOMERY, AL MONTGOMERY 2022 $420,680 $538,650 $651,050 $809,150

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Montgomery (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 $169,000 (5.7%) $217,640 (0.0%) 0.62 1,896
2018-02-01 $175,000 (8.0%) $224,928 (3.4%) 0.63 1,885
2018-03-01 $177,900 (6.4%) $230,545 (2.9%) 0.62 1,954
2018-04-01 $189,450 (12.1%) $238,035 (5.2%) 0.64 2,056
2018-05-01 $192,325 (13.5%) $242,215 (5.9%) 0.64 2,069
2018-06-01 $189,900 (12.1%) $242,965 (5.9%) 0.63 2,082
2018-07-01 $194,900 (15.0%) $243,232 (6.7%) 0.65 2,065
2018-08-01 $197,500 (16.9%) $246,427 (8.8%) 0.66 1,986
2018-09-01 $199,900 (15.6%) $244,974 (7.1%) 0.67 1,948
2018-10-01 $195,500 (15.1%) $241,262 (6.3%) 0.65 1,937
2018-11-01 $194,700 (15.7%) $241,524 (9.4%) 0.65 1,852
2018-12-01 $192,900 (13.8%) $239,626 (8.7%) 0.66 1,784
2019-01-01 $192,950 (14.2%) $238,199 (9.5%) 0.67 1,694
2019-02-01 $196,250 (12.1%) $242,792 (7.9%) 0.66 1,718
2019-03-01 $206,564 (16.1%) $252,870 (9.7%) 0.67 1,709
2019-04-01 $219,275 (15.7%) $265,866 (11.7%) 0.69 1,741
2019-05-01 $222,450 (15.7%) $265,055 (9.4%) 0.69 1,670
2019-06-01 $219,900 (15.8%) $261,117 (7.5%) 0.68 1,698
2019-07-01 $221,355 (13.6%) $260,896 (7.3%) 0.69 1,690
2019-08-01 $222,529 (12.7%) $258,539 (4.9%) 0.70 1,624
2019-09-01 $219,900 (10.0%) $255,352 (4.2%) 0.70 1,578
2019-10-01 $218,875 (12.0%) $252,209 (4.5%) 0.70 1,579
2019-11-01 $215,000 (10.4%) $250,512 (3.7%) 0.69 1,558
2019-12-01 $219,900 (14.0%) $252,172 (5.2%) 0.73 1,484
2020-01-01 $223,950 (16.1%) $253,552 (6.5%) 0.75 1,410
2020-02-01 $225,000 (14.7%) $257,734 (6.2%) 0.73 1,386
2020-03-01 $238,300 (15.4%) $267,182 (5.7%) 0.74 1,374
2020-04-01 $241,450 (10.1%) $270,480 (1.7%) 0.75 1,367
2020-05-01 $243,000 (9.2%) $269,523 (1.7%) 0.74 1,277
2020-06-01 $244,625 (11.2%) $271,290 (3.9%) 0.71 1,171
2020-07-01 $243,200 (9.9%) $270,231 (3.6%) 0.70 1,103
2020-08-01 $239,000 (7.4%) $270,828 (4.8%) 0.68 1,105
2020-09-01 $239,000 (8.7%) $272,521 (6.7%) 0.68 1,001
2020-10-01 $237,000 (8.3%) $273,337 (8.4%) 0.68 935
2020-11-01 $214,450 (-0.3%) $262,091 (4.6%) 0.61 922
2020-12-01 $209,900 (-4.6%) $260,798 (3.4%) 0.62 831
2021-01-01 $209,900 (-6.3%) $260,143 (2.6%) 0.62 741
2021-02-01 $224,900 (0.0%) $279,778 (8.6%) 0.65 582
2021-03-01 $233,500 (-2.0%) $287,406 (7.6%) 0.65 547
2021-04-01 $261,400 (8.3%) $298,554 (10.4%) 0.70 561
2021-05-01 $257,900 (6.1%) $295,447 (9.6%) 0.68 577
2021-06-01 $237,000 (-3.1%) $285,084 (5.1%) 0.62 579
2021-07-01 $234,950 (-3.4%) $287,818 (6.5%) 0.61 607
2021-08-01 $239,450 (0.2%) $292,168 (7.9%) 0.63 640
2021-09-01 $238,700 (-0.1%) $299,361 (9.9%) 0.63 596
2021-10-01 $234,900 (-0.9%) $284,744 (4.2%) 0.62 552
2021-11-01 $219,450 (2.3%) $275,436 (5.1%) 0.58 518
2021-12-01 $215,450 (2.6%) $266,247 (2.1%) 0.57 508
2022-01-01 $204,900 (-2.4%) $270,714 (4.1%) 0.55 437
2022-02-01 $199,400 (-11.3%) $287,650 (2.8%) 0.51 376
2022-03-01 $222,450 (-4.7%) $291,714 (1.5%) 0.55 429
2022-04-01 $249,000 (-4.7%) $300,737 (0.7%) 0.59 447
Montgomery's median listing price for 2022-04-01 was $249,000, a difference of $-12,400 (-4.7%) versus the prior year and $26,550 versus the prior month.

Montgomery's median listing price comes in at 59% of the national average.

Montgomery's average listing price for 2022-04-01 was $300,737, a difference of $2,183 (0.7%) versus the prior year and $9,023 versus the prior month.

For the 2022-04-01 period, Montgomery had 447 MLS listings, a difference of 18 listings (4%) versus the prior month and -114 listings (-20%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Montgomery (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 111 days 1,951 sqft
2018-02-01 112 days 1,983 sqft
2018-03-01 91 days 1,988 sqft
2018-04-01 77 days 2,052 sqft
2018-05-01 75 days 2,068 sqft
2018-06-01 83 days 2,068 sqft
2018-07-01 85 days 2,078 sqft
2018-08-01 86 days 2,099 sqft
2018-09-01 88 days 2,104 sqft
2018-10-01 91 days 2,077 sqft
2018-11-01 95 days 2,072 sqft
2018-12-01 102 days 2,043 sqft
2019-01-01 112 days 2,038 sqft
2019-02-01 104 days 2,094 sqft
2019-03-01 85 days 2,141 sqft
2019-04-01 75 days 2,177 sqft
2019-05-01 67 days 2,194 sqft
2019-06-01 70 days 2,171 sqft
2019-07-01 75 days 2,156 sqft
2019-08-01 78 days 2,146 sqft
2019-09-01 86 days 2,134 sqft
2019-10-01 87 days 2,102 sqft
2019-11-01 92 days 2,100 sqft
2019-12-01 95 days 2,119 sqft
2020-01-01 99 days 2,132 sqft
2020-02-01 97 days 2,144 sqft
2020-03-01 79 days 2,188 sqft
2020-04-01 71 days 2,196 sqft
2020-05-01 77 days 2,218 sqft
2020-06-01 83 days 2,235 sqft
2020-07-01 74 days 2,245 sqft
2020-08-01 60 days 2,241 sqft
2020-09-01 64 days 2,244 sqft
2020-10-01 70 days 2,221 sqft
2020-11-01 66 days 2,134 sqft
2020-12-01 71 days 2,093 sqft
2021-01-01 76 days 2,104 sqft
2021-02-01 71 days 2,217 sqft
2021-03-01 51 days 2,243 sqft
2021-04-01 37 days 2,229 sqft
2021-05-01 35 days 2,200 sqft
2021-06-01 39 days 2,076 sqft
2021-07-01 38 days 1,978 sqft
2021-08-01 38 days 2,073 sqft
2021-09-01 49 days 2,084 sqft
2021-10-01 54 days 2,073 sqft
2021-11-01 60 days 2,049 sqft
2021-12-01 55 days 1,933 sqft
2022-01-01 59 days 1,904 sqft
2022-02-01 49 days 1,959 sqft
2022-03-01 36 days 1,904 sqft
2022-04-01 37 days 2,035 sqft
Montgomery's median listing age (time on market) for 2022-04-01 was 37 days. This is 1% longer than the same period one year ago.

Montgomery's median square footage for active listings during the 2022-04-01 period was 2,035 sqft. One year prior, the average listing was 2,229 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).