Montgomery FHA Loan Rates, Closing Costs & Stats

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 103 lenders originated 1,207 FHA loans during 2023. The total origination value was $259,185,000, with an average FHA loan value of $214,735.

Montgomery FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Montgomery averaged 6.4% for the week of 2024-07-19, compared to the national average (all FHA variants) of 6.59% for the same period.

Montgomery's average FHA mortgage closing costs are $6,582.

The average rate for the prior week (2024-07-12) was 6.45% and one month ago for the week of 2024-06-14, the average rate was 6.71%.

The average rate one year ago was 6.89%.

For refis of the same type during the week of 2024-07-19, the average rate was 6.7%.

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

Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
GUILD MORTGAGE COMPANY 166 6.73% $9,466
CROSSCOUNTRY MORTGAGE, LLC 99 6.62% $10,367
QUICKEN LOANS, LLC 98 6.36% $9,039
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 80 6.80% $7,833
Trustmark National Bank 78 6.50% $9,065
Renasant Bank 65 6.63% $9,817
UNITED WHOLESALE MORTGAGE, LLC 57 6.54% $9,072
CMG MORTGAGE, INC. 47 6.89% $9,369
DHI MORTGAGE COMPANY, LTD. 33 5.44% $8,146
MOVEMENT MORTGAGE, LLC 29 7.02% $9,219
Flagstar Bank, FSB 26 6.75% $7,765
Regions Bank 23 6.12% $7,752
LOANDEPOT.COM, LLC 16 6.70% $9,063
GUARANTEED RATE, INC. 16 6.02% $10,666
PENNYMAC LOAN SERVICES, LLC 14 6.18% $11,197
GMFS LLC 14 6.69% $4,162
Carrington Mortgage Services, LLC 13 6.24% $8,919
FREEDOM MORTGAGE CORPORATION 13 6.77% $13,556
BROKER SOLUTIONS, INC. 12 6.75% $9,056
NEWREZ LLC 11 6.34% $7,399
CARDINAL FINANCIAL 11 6.11% $11,339
UNION HOME MORTGAGE CORP. 10 6.75% $10,066
SouthPoint Bank 10 6.71% $7,015
Mr. Cooper ( Nationstar Mortgage ) 10 6.11% $11,118
LAKEVIEW LOAN SERVICING, LLC 10 6.24% $10,767
MILEND, INC. 9 6.39% $11,555
AMERISAVE MORTGAGE CORPORATION 8 6.08% $9,954
AMERICAN FINANCIAL NETWORK, INC. 7 7.02% $11,492
Synovus Bank 7 6.89% $7,161
PRIMELENDING, A PLAINSCAPITAL COMPANY 6 6.85% $8,484
FIRST COMMUNITY MORTGAGE, INC. 6 7.31% $9,958
ACOPIA, LLC 5 7.07% $9,117
Prosperity Home Mortgage, LLC 5 6.02% $11,715
STOCKTON MORTGAGE CORPORATION 5 6.93% $10,006
First Federal Bank 5 6.58% $6,358
Hamilton Mortgage Corporation 5 6.93% $8,673
Consumer First Mortgage, Inc. 4 6.47% $9,125
BAY EQUITY LLC 4 6.31% $8,702
Barrington Bank & Trust Company, N.A. 3 5.75% $13,101
Ameris Bank 3 6.21% $11,016
BancorpSouth 3 6.46% $6,836
CANOPY MORTGAGE, LLC 3 7.00% $11,237
EVERETT FINANCIAL, INC. 3 7.42% $8,815
SOUTHEAST MORTGAGE OF GEORGIA, INC. 2 6.81% $9,008
Nations Lending Corporation 2 6.00% $7,754
Plains Commerce Bank 2 6.00% $10,289
ARK-LA-TEX FINANCIAL SERVICES, LLC. 2 7.38% $8,385
JPMorgan Chase Bank 2 7.25% $4,802
Mortgage Research Center, LLC 2 6.88% $5,521
FirstBank 2 6.81% $8,346
The Federal Savings Bank 2 7.19% $10,987
Cornerstone First Mortgage, Inc 2 7.56% $9,804
CALIBER HOME LOANS, INC. 2 6.25% $6,466
MID AMERICA MORTGAGE, INC. 2 7.31% $3,091
Truist 2 6.48% $6,457
NFM, INC. 2 7.88% $9,300
Northpointe Bank 2 6.75% $6,698
HOMESTAR FINANCIAL CORPORATION 2 6.00% $6,080
FBC MORTGAGE, LLC 2 6.12% $10,872
AMERICAN FINANCIAL RESOURCES, INC. 2 6.25% $10,049
Wells Fargo Bank 2 5.75% $10,242
HOMEBRIDGE FINANCIAL SERVICES, INC. 2 6.44% $12,943
EMBRACE HOME LOANS, INC. 1 6.25% $6,004
PENTAGON FEDERAL CREDIT UNION 1 6.00% $13,816
PLANET HOME LENDING, LLC 1 6.38% $5,843
PREMIA MORTGAGE, LLC 1 7.50% $4,633
DAS Acquisition Company, LLC 1 7.00% $6,427
BAY-VALLEY MORTGAGE GROUP 1 7.13% $12,830
Bank of England 1 7.00% $14,226
ROYAL UNITED MORTGAGE LLC 1 6.88% $8,405
RUOFF MORTGAGE COMPANY, INC. 1 5.13% $13,512
SeaTrust Mortgage Company 1 6.13% $5,869
ATLANTIC BAY MORTGAGE GROUP, L.L.C. 1 7.25% $6,167
South State Bank 1 6.38% $11,212
Strong Home Mortgage, LLC 1 7.49% $9,167
SUN WEST MORTGAGE COMPANY, INC. 1 5.59% $7,207
AmeriHome Mortgage Company, LLC 1 6.75% $11,904
The Huntington National Bank 1 6.63% $11,530
TOTAL MORTGAGE SERVICES, LLC 1 6.25% $12,965
TOWNE MORTGAGE COMPANY 1 6.25% $10,999
AMERICAN PACIFIC MORTGAGE CORPORATION 1 7.63% $19,800
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 1 6.63% $14,461
United Community Bank 1 5.63% $10,280
UNITED NORTHERN MORTGAGE BANKERS LIMITED 1 5.25% $11,045
ZILLOW HOME LOANS, LLC 1 7.75% $9,940
HOMESIDE FINANCIAL, LLC 1 6.75% $11,062
HOPE FEDERAL CREDIT UNION 1 6.50% $7,859
HUNT MORTGAGE CORPORATION 1 5.88% $8,597
First Federal Bank, A FSB 1 6.88% $6,228
LEADERONE FINANCIAL CORPORATION 1 6.99% $8,802
LENOX FINANCIAL MORTGAGE CORPORATION 1 5.75% $8,290
LIBERTY HOME MORTGAGE CORPORATION 1 6.88% $9,128
MIDLAND MORTGAGE CORPORATION 1 7.50% $3,053
MORTGAGE MANAGEMENT CONSULTANTS, INC. 1 7.25% $3,472
Equity Prime Mortgage LLC 1 6.38% $12,306
ENVOY MORTGAGE, LTD 1 7.00% $9,381
M&T Bank 1 7.13% $8,065
MUTUAL OF OMAHA MORTGAGE, INC. 1 6.25% $8,317
NATIONWIDE MORTGAGE BANKERS, INC. 1 6.75% $8,028
NBKC BANK 1 6.63% $5,022
NEW DAY FINANCIAL, LLC 1 7.00% $9,818
EMM LOANS LLC 1 6.50% $10,038
Paramount Residential Mortgage Group, Inc. 1 6.50% $6,757

The top Montgomery FHA lender as defined by loan originations is GUILD MORTGAGE COMPANY, with 166 FHA loans originated. Their average total fees are $9,466, which is $901 lower than the next largest lender, CROSSCOUNTRY MORTGAGE, LLC.

The lowest fee Montgomery FHA lenders (with over 10 loans originated) are GMFS LLC ($4,162), SouthPoint Bank ($7,015), NEWREZ LLC ($7,399), Regions Bank ($7,752) and Flagstar Bank, FSB ($7,765).

The lowest rate Montgomery FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.44%), GUARANTEED RATE, INC. (6.02%), Mr. Cooper ( Nationstar Mortgage ) (6.11%), CARDINAL FINANCIAL (6.11%) and Regions Bank (6.12%).

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
MONTGOMERY, AL AUTAUGA 2023 $472,030 $604,400 $730,525 $907,900
MONTGOMERY, AL ELMORE 2023 $472,030 $604,400 $730,525 $907,900
MONTGOMERY, AL LOWNDES 2023 $472,030 $604,400 $730,525 $907,900
MONTGOMERY, AL MONTGOMERY 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).