Norwich FHA Loan Rates, Closing Costs & Stats

NORWICH-NEW LONDON, CT

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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.

    Norwich's 74 lenders originated 488 FHA loans during 2023. The total origination value was $124,540,000, with an average FHA loan value of $255,205.

    Norwich FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Norwich averaged 6.5% for the week of 2024-11-08, compared to the national average (all FHA variants) of 6.425% for the same period.

    Norwich's average FHA mortgage closing costs are $7,933.

    The average rate for the prior week (2024-11-01) was 6.37% and one month ago for the week of 2024-10-04, the average rate was 5.99%.

    The average rate one year ago was 7.34%.

    For refis of the same type during the week of 2024-11-08, the average rate was 6.07%.

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

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    HOMESTEAD FUNDING CORP. 54 6.13% $7,969
    QUICKEN LOANS, LLC 48 6.26% $12,616
    UNITED WHOLESALE MORTGAGE, LLC 45 6.41% $12,012
    TOTAL MORTGAGE SERVICES, LLC 31 6.29% $9,540
    NORWICH COMMERCIAL GROUP, INC. 23 6.43% $11,765
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 18 6.80% $10,902
    GUARANTEED RATE, INC. 14 6.88% $12,934
    FREEDOM MORTGAGE CORPORATION 13 6.83% $15,253
    Prosperity Home Mortgage, LLC 10 6.49% $10,368
    CROSSCOUNTRY MORTGAGE, LLC 10 6.79% $10,429
    LOANDEPOT.COM, LLC 10 6.11% $12,205
    FIRST WORLD MORTGAGE CORPORATION 10 6.00% $8,737
    MOVEMENT MORTGAGE, LLC 8 6.64% $9,929
    Paramount Residential Mortgage Group, Inc. 8 6.86% $12,504
    PLAZA HOME MORTGAGE, INC. 8 6.76% $11,915
    NEWREZ LLC 7 6.64% $10,422
    EVERETT FINANCIAL, INC. 6 6.92% $16,445
    PRIMELENDING, A PLAINSCAPITAL COMPANY 6 7.08% $14,191
    Mr. Cooper ( Nationstar Mortgage ) 6 6.00% $13,262
    BROKER SOLUTIONS, INC. 5 6.55% $12,307
    CARDINAL FINANCIAL 5 6.09% $11,549
    MID AMERICA MORTGAGE, INC. 5 7.28% $4,910
    MUTUAL OF OMAHA MORTGAGE, INC. 5 6.48% $13,976
    PENNYMAC LOAN SERVICES, LLC 5 6.17% $13,078
    PRIMARY RESIDENTIAL MORTGAGE, INC. 4 6.56% $13,370
    Semper Home Loans, Inc. 4 6.88% $18,119
    RELIANCE FIRST CAPITAL, LLC 4 5.97% $14,783
    HOMEBRIDGE FINANCIAL SERVICES, INC. 4 6.69% $12,281
    T2 FINANCIAL LLC 3 6.63% $9,964
    Plains Commerce Bank 3 6.63% $15,016
    TOP FLITE FINANCIAL, INC. 3 7.25% $17,565
    Citizens Bank 3 6.29% $11,219
    AMERISAVE MORTGAGE CORPORATION 3 6.25% $6,429
    Equity Prime Mortgage LLC 2 7.75% $11,729
    Magnolia Bank 2 6.68% $14,527
    WILLIAM RAVEIS MORTGAGE, LLC 2 6.38% $9,739
    Shamrock Home Loans, Inc. 2 6.25% $13,658
    PROVINCE MORTGAGE ASSOCIATES, INC. 2 7.06% $13,362
    Carrington Mortgage Services, LLC 2 6.81% $17,876
    Mortgage Research Center, LLC 2 6.56% $4,848
    Charter Oak Federal Credit Union 2 6.44% $8,639
    NFM, INC. 2 6.88% $12,388
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 2 6.75% $11,739
    M&T Bank 2 6.75% $11,360
    NATIONWIDE MORTGAGE BANKERS, INC. 2 7.06% $11,086
    MLB RESIDENTIAL LENDING, LLC 1 7.13% $29,887
    AMERICAN FINANCIAL NETWORK, INC. 1 7.25% $12,958
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 1 7.25% $14,731
    BAY EQUITY LLC 1 6.50% $10,563
    Centreville Bank 1 5.63% $5,606
    CMG MORTGAGE, INC. 1 8.00% $12,228
    EMM LOANS LLC 1 6.63% $12,073
    FirstBank 1 6.13% $11,943
    FIRST COMMUNITY MORTGAGE, INC. 1 6.63% $10,119
    GUARANTEED RATE AFFINITY, LLC 1 6.25% $5,911
    HARBORONE MORTGAGE, LLC 1 6.75% $12,538
    Ixonia Bank 1 7.38% $17,485
    Keystone Funding, Inc. 1 6.25% $23,050
    LAKEVIEW LOAN SERVICING, LLC 1 5.25% $7,388
    LEADERONE FINANCIAL CORPORATION 1 7.13% $8,503
    Liberty Bank 1 6.63% $7,618
    Loan Simple, Inc. 1 6.75% $10,994
    MEMBERS MORTGAGE COMPANY, INC. 1 5.75% $9,389
    ALLIED MORTGAGE GROUP, INC. 1 6.63% $10,682
    MORTGAGE EQUITY PARTNERS LLC 1 6.88% $9,953
    MORTGAGE SOLUTIONS OF COLORADO, LLC 1 6.25% $18,127
    NATIONS DIRECT MORTGAGE, LLC 1 7.63% $13,045
    NBKC BANK 1 7.13% $7,512
    Northpointe Bank 1 5.75% $12,219
    OCMBC, INC. 1 7.50% $14,970
    POLARIS HOME FUNDING CORP. 1 7.13% $15,520
    SUN WEST MORTGAGE COMPANY, INC. 1 6.13% $13,248
    VILLAGE CAPITAL MORTGAGE 1 6.25% $15,007
    ZILLOW HOME LOANS, LLC 1 7.13% $12,017

    The top Norwich FHA lender as defined by loan originations is HOMESTEAD FUNDING CORP., with 54 FHA loans originated. Their average total fees are $7,969, which is $4,647 lower than the next largest lender, QUICKEN LOANS, LLC.

    The lowest fee Norwich FHA lenders (with over 10 loans originated) are HOMESTEAD FUNDING CORP. ($7,969), FIRST WORLD MORTGAGE CORPORATION ($8,737), TOTAL MORTGAGE SERVICES, LLC ($9,540), Prosperity Home Mortgage, LLC ($10,368) and CROSSCOUNTRY MORTGAGE, LLC ($10,429).

    The lowest rate Norwich FHA lenders (with over 10 loans originated) are FIRST WORLD MORTGAGE CORPORATION (6.00%), LOANDEPOT.COM, LLC (6.11%), HOMESTEAD FUNDING CORP. (6.13%), QUICKEN LOANS, LLC (6.26%) and TOTAL MORTGAGE SERVICES, LLC (6.29%).

    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
    NORWICH-NEW LONDON, CT NEW LONDON 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).