Ottawa FHA Loan Rates, Closing Costs & Stats

Ottawa, IL

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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.

    Ottawa's 65 lenders originated 235 FHA loans during 2023. The total origination value was $38,675,000, with an average FHA loan value of $164,574.

    Ottawa FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Ottawa averaged 6.92% for the week of 2024-04-19, compared to the national average (all FHA variants) of 6.855% for the same period.

    Ottawa's average FHA mortgage closing costs are $6,303.

    The average rate for the prior week (2024-04-12) was 6.81% and one month ago for the week of 2024-03-15, the average rate was 6.88%.

    The average rate one year ago was 6.61%.

    For refis of the same type during the week of 2024-04-19, the average rate was 6.96%.

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

    Ottawa 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 Ottawa level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    QUICKEN LOANS, LLC 41 6.54% $7,415
    LOANDEPOT.COM, LLC 22 6.81% $8,854
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 7 6.50% $8,607
    DIAMOND RESIDENTIAL MORTGAGE CORPORATION 7 6.43% $7,494
    GUARANTEED RATE, INC. 7 6.48% $8,434
    UNITED WHOLESALE MORTGAGE, LLC 6 6.83% $9,910
    United Community Bank 6 7.13% $4,722
    CALIBER HOME LOANS, INC. 6 6.08% $7,498
    FIRST CENTENNIAL MORTGAGE CORPORATION 6 6.50% $6,941
    CROSSCOUNTRY MORTGAGE, LLC 6 6.43% $9,429
    FIRST STATE MORTGAGE SERVICES, LLC 5 6.70% $5,794
    The Federal Savings Bank 4 6.97% $13,414
    First Federal Savings Bank 4 6.66% $3,381
    COMPASS MORTGAGE, INC. 4 6.44% $9,053
    Midland States Bank 3 6.96% $6,339
    Flanagan State Bank 3 6.25% $8,878
    NEWREZ LLC 3 7.13% $6,658
    AMERICAN PACIFIC MORTGAGE CORPORATION 3 7.04% $10,651
    Neighborhood Loans, Inc. 3 7.04% $11,935
    Allied First Bank,sb 2 6.81% $9,647
    AMERICAN FINANCING CORPORATION 2 6.69% $7,213
    AMERISAVE MORTGAGE CORPORATION 2 6.25% $11,200
    BROKER SOLUTIONS, INC. 2 6.75% $10,691
    Carrington Mortgage Services, LLC 2 6.38% $11,453
    Century Mortgage Company DBA Century Lending Company 2 6.19% $10,053
    CIBM Bank 2 6.31% $7,686
    Flagstar Bank, FSB 2 6.75% $7,541
    FLAT BRANCH MORTGAGE, INC. 2 6.31% $5,201
    FREEDOM MORTGAGE CORPORATION 2 7.00% $12,664
    Mr. Cooper ( Nationstar Mortgage ) 2 6.44% $8,399
    MUTUAL OF OMAHA MORTGAGE, INC. 2 6.75% $12,474
    Prosperity Home Mortgage, LLC 2 6.19% $10,953
    Heartland Bank and Trust Company 1 7.88% $5,490
    HOMEBRIDGE FINANCIAL SERVICES, INC. 1 7.13% $11,153
    HOMESIDE FINANCIAL, LLC 1 6.63% $6,558
    EVERETT FINANCIAL, INC. 1 6.63% $3,694
    MID AMERICA MORTGAGE, INC. 1 6.75% $5,245
    ENDEAVOR CAPITAL, LLC. 1 7.13% $5,282
    Mortgage Assurance Inc. 1 6.25% $9,582
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 7.13% $13,593
    Wells Fargo Bank 1 6.13% $4,229
    NATIONS DIRECT MORTGAGE, LLC 1 7.25% $9,501
    DRAPER AND KRAMER MORTGAGE CORP. 1 6.13% $11,853
    BMO Harris Bank 1 6.00% $7,125
    Old National Bank 1 7.00% $9,773
    Old Second National Bank 1 6.50% $5,865
    PENNYMAC LOAN SERVICES, LLC 1 7.13% $9,397
    PENTAGON FEDERAL CREDIT UNION 1 5.13% $5,845
    Plains Commerce Bank 1 6.25% $6,917
    PLAZA HOME MORTGAGE, INC. 1 6.25% $9,102
    PREMIER MORTGAGE RESOURCES, L.L.C. 1 7.50% $8,660
    PRIMELENDING, A PLAINSCAPITAL COMPANY 1 6.75% $18,791
    ZILLOW HOME LOANS, LLC 1 5.63% $10,349
    BETTER MORTGAGE CORPORATION 1 6.63% $5,670
    Servion, Inc. 1 6.63% $7,081
    THE ANDERSON FINANCIAL GROUP, INC. 1 6.13% $6,437
    BAY EQUITY LLC 1 6.75% $6,092
    The Huntington National Bank 1 6.63% $10,949
    TOWNE MORTGAGE COMPANY 1 7.75% $6,600
    UNION HOME MORTGAGE CORP. 1 6.63% $8,556
    Barrington Bank & Trust Company, N.A. 1 6.75% $10,340
    United Fidelity Funding Corp. 1 7.75% $11,005
    GENEVA FINANCIAL, LLC 1 7.38% $11,572
    First National Bank of Omaha 1 6.13% $5,738
    GUILD MORTGAGE COMPANY 1 6.88% $6,897

    The top Ottawa FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 41 FHA loans originated. Their average total fees are $7,415, which is $1,439 lower than the next largest lender, LOANDEPOT.COM, LLC.

    The lowest fee Ottawa FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC ($7,415), LOANDEPOT.COM, LLC ($8,854), .

    The lowest rate Ottawa FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (6.54%), LOANDEPOT.COM, LLC (6.81%), .

    Ottawa FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    OTTAWA, IL BUREAU 2022 $420,680 $538,650 $651,050 $809,150
    OTTAWA, IL LASALLE 2022 $420,680 $538,650 $651,050 $809,150
    OTTAWA, IL PUTNAM 2022 $420,680 $538,650 $651,050 $809,150
    OTTAWA, IL BUREAU 2023 $472,030 $604,400 $730,525 $907,900
    OTTAWA, IL LASALLE 2023 $472,030 $604,400 $730,525 $907,900
    OTTAWA, IL PUTNAM 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).