Montgomery FHA Loans

MONTGOMERY, AL

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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.

    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).