Norwich FHA Loans

NORWICH-NEW LONDON, CT

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.

Norwich's 96 lenders originated 1,118 FHA loans during 2021. The total origination value was $246,650,000, with an average FHA loan value of $220,617.

Norwich FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Norwich averaged 5.45% for the week of 2022-05-13, compared to the national average (all FHA variants) of 5.361% for the same period.

The average rate for the prior week (2022-05-06) was 5.28% and one month ago for the week of 2022-04-08, the average rate was 5.04%.

The average rate one year ago was 3.15%.

For refis of the same type during the week of 2022-05-13, the average rate was 4.95%.

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

Norwich 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 Norwich level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
QUICKEN LOANS, LLC 98 2.75% $6,462
HOMESTEAD FUNDING CORP. 81 2.83% $6,930
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 71 3.19% $8,471
UNITED WHOLESALE MORTGAGE, LLC 62 2.62% $8,689
NORWICH COMMERCIAL GROUP, INC. 55 3.19% $8,494
FREEDOM MORTGAGE CORPORATION 53 3.07% $5,556
LOANDEPOT.COM, LLC 38 2.78% $7,985
TOTAL MORTGAGE SERVICES, LLC 36 2.92% $8,795
LAKEVIEW LOAN SERVICING, LLC 28 3.06% $4,658
PRIMARY RESIDENTIAL MORTGAGE, INC. 22 3.59% $9,969
Mr. Cooper ( Nationstar Mortgage ) 21 3.35% $4,721
HOME POINT FINANCIAL CORPORATION 20 2.71% $8,438
PRIMELENDING, A PLAINSCAPITAL COMPANY 19 3.51% $9,446
FIRST WORLD MORTGAGE CORPORATION 19 2.89% $8,374
NEWREZ LLC 18 2.82% $6,186
Prosperity Home Mortgage, LLC 18 3.05% $8,588
MOVEMENT MORTGAGE, LLC 17 3.05% $6,711
HOMEBRIDGE FINANCIAL SERVICES, INC. 17 2.93% $7,023
Paramount Residential Mortgage Group, Inc. 15 3.01% $8,850
CALIBER HOME LOANS, INC. 14 2.83% $8,123
BROKER SOLUTIONS, INC. 11 3.00% $8,125
Citizens Bank 10 2.70% $7,249
ALLIED MORTGAGE GROUP, INC. 10 3.05% $8,224
PENNYMAC LOAN SERVICES, LLC 10 3.11% $5,508
Carrington Mortgage Services, LLC 9 3.53% $7,869
NFM, INC. 9 3.19% $8,111
GUARANTEED RATE AFFINITY, LLC 9 2.92% $7,513
WILLIAM RAVEIS MORTGAGE, LLC 8 2.83% $8,155
Shamrock Home Loans, Inc. 8 3.52% $9,581
CROSSCOUNTRY MORTGAGE, LLC 8 3.38% $9,528
OCMBC, INC. 7 3.18% $7,395
AmeriHome Mortgage Company, LLC 6 2.94% $4,241
FINANCE OF AMERICA MORTGAGE LLC 6 2.79% $8,185
GUARANTEED RATE, INC. 6 2.71% $8,798
AMERISAVE MORTGAGE CORPORATION 6 2.90% $7,370
Nations Lending Corporation 6 3.10% $6,575
Lakeview Community Capital, LLC 6 3.19% $3,775
Northpointe Bank 6 3.06% $7,851
AMERICAN FINANCIAL NETWORK, INC. 5 3.03% $11,948
EQUITY RESOURCES, INC. 5 2.65% $9,527
Berkshire Bank 5 2.80% $7,535
First Guaranty Mortgage Corporation 5 2.83% $8,769
VILLAGE CAPITAL & INVESTMENT LLC 4 3.06% $2,260
CONTOUR MORTGAGE CORPORATION 4 2.50% $6,976
RESIDENTIAL MORTGAGE SERVICES, INC. 4 3.25% $8,033
PLAZA HOME MORTGAGE, INC. 4 3.53% $7,841
Equity Prime Mortgage LLC 4 3.22% $8,593
Charter Oak Federal Credit Union 4 2.44% $6,211
Flagstar Bank, FSB 3 2.71% $8,454
SUN WEST MORTGAGE COMPANY, INC. 3 3.25% $6,600
HOMESIDE FINANCIAL, LLC 3 3.27% $9,117
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 3 2.92% $6,940
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 3 3.38% $9,174
NATIONS DIRECT MORTGAGE, LLC 2 3.81% $6,975
Chelsea Groton Bank 2 2.81% $8,083
EMBRACE HOME LOANS, INC. 2 3.25% $7,203
EMM LOANS LLC 2 3.00% $16,779
EVERETT FINANCIAL, INC. 2 3.69% $6,963
HARBORONE MORTGAGE, LLC 2 3.19% $7,306
Hometown Equity Mortgage, LLC 2 4.38% $11,079
InterContinental Capital Group, Inc 2 3.25% $9,248
Mortgage Network, Inc. 2 3.13% $8,816
Mortgage Research Center, LLC 2 3.06% $6,254
PLANET HOME LENDING, LLC 2 2.69% $5,083
PROVINCE MORTGAGE ASSOCIATES, INC. 2 3.00% $10,288
Webster Bank 2 3.00% $12,569
MID AMERICA MORTGAGE, INC. 1 3.50% $2,856
NORTHPOINT MORTGAGE, INC. 1 3.13% $7,982
INTERSTATE HOME LOAN CENTER, INC. 1 3.25% $11,489
Homestar Mortgage, Inc. 1 3.00% $2,871
HOMESPIRE MORTGAGE CORPORATION 1 3.63% $9,129
FIRST HOME MORTGAGE CORPORATION 1 3.75% $10,250
Plains Commerce Bank 1 2.50% $8,595
Wells Fargo Bank 1 2.88% $10,014
First Home Bank 1 3.50% $7,030
ENVOY MORTGAGE, LTD 1 3.63% $7,378
DAS Acquisition Company, LLC 1 3.25% $5,292
CMG MORTGAGE, INC. 1 3.25% $7,597
AMERICAN FINANCIAL RESOURCES, INC. 1 3.75% $6,869
BETTER MORTGAGE CORPORATION 1 2.25% $11,227
Barrington Bank & Trust Company, N.A. 1 2.88% $8,689
Bank of America 1 2.75% $2,128
Sierra Pacific Mortgage Company, Inc. 1 3.13% $8,734
SOVEREIGN LENDING GROUP INCORPORATED 1 3.13% $10,882
STEARNS LENDING, LLC 1 2.25% $7,709
Atlantic Home Loans, Inc. 1 3.00% $7,619
The Federal Savings Bank 1 3.00% $6,448
TIAA, FSB 1 2.75% $4,450
ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 3.63% $8,785
TOWNE MORTGAGE COMPANY 1 2.75% $7,928
ARC HOME LLC 1 2.63% $9,639
AmRes Corporation 1 2.75% $4,876
ZILLOW HOME LOANS, LLC 1 2.63% $6,639
Network Funding, L.P. 1 3.63% $5,700
MUTUAL OF OMAHA MORTGAGE, INC. 1 3.50% $7,485
NJ LENDERS CORP. 1 2.63% $10,725

The top Norwich FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 98 FHA loans originated. Their average total fees are $6,462, which is $467 lower than the next largest lender, HOMESTEAD FUNDING CORP..

The lowest fee Norwich FHA lenders (with over 10 loans originated) are LAKEVIEW LOAN SERVICING, LLC ($4,658), Mr. Cooper ( Nationstar Mortgage ) ($4,721), PENNYMAC LOAN SERVICES, LLC ($5,508), FREEDOM MORTGAGE CORPORATION ($5,556) and NEWREZ LLC ($6,186).

The lowest rate Norwich FHA lenders (with over 10 loans originated) are UNITED WHOLESALE MORTGAGE, LLC (2.62%), Citizens Bank (2.70%), HOME POINT FINANCIAL CORPORATION (2.71%), QUICKEN LOANS, LLC (2.75%) and LOANDEPOT.COM, LLC (2.78%).

Norwich FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
NORWICH-NEW LONDON, CT NEW LONDON 2022 $420,680 $538,650 $651,050 $809,150

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).