Reading FHA Loan Rates, Closing Costs & Stats

READING, PA

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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.

    Reading's 113 lenders originated 1,074 FHA loans during 2023. The total origination value was $236,860,000, with an average FHA loan value of $220,540.

    Reading FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Reading averaged 6.46% for the week of 2024-11-08, compared to the national average (all FHA variants) of 6.425% for the same period.

    Reading's average FHA mortgage closing costs are $7,631.

    The average rate for the prior week (2024-11-01) was 6.34% and one month ago for the week of 2024-10-04, the average rate was 6.06%.

    The average rate one year ago was 7.5%.

    For refis of the same type during the week of 2024-11-08, the average rate was 6.82%.

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

    Reading 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 Reading level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    QUICKEN LOANS, LLC 110 6.37% $10,646
    CROSSCOUNTRY MORTGAGE, LLC 92 6.87% $11,087
    Mortgage America, Inc. 83 6.52% $8,978
    UNITED WHOLESALE MORTGAGE, LLC 55 6.19% $13,056
    MOVEMENT MORTGAGE, LLC 37 6.81% $11,505
    Flanagan State Bank 33 6.48% $10,924
    PLAZA HOME MORTGAGE, INC. 33 6.27% $8,120
    Customers Bank 26 6.34% $7,428
    BROKER SOLUTIONS, INC. 24 6.68% $13,030
    LOANDEPOT.COM, LLC 23 6.41% $13,739
    Univest Bank and Trust Co. 21 6.59% $10,167
    Northpointe Bank 21 6.32% $13,376
    GUILD MORTGAGE COMPANY 20 6.82% $13,160
    FREEDOM MORTGAGE CORPORATION 19 6.90% $13,253
    Paramount Residential Mortgage Group, Inc. 17 6.85% $12,871
    Mr. Cooper ( Nationstar Mortgage ) 15 5.89% $16,686
    CONTOUR MORTGAGE CORPORATION 15 6.88% $12,884
    GUARANTEED RATE, INC. 13 6.37% $11,895
    PENNYMAC LOAN SERVICES, LLC 13 6.22% $12,256
    NEWREZ LLC 12 6.55% $12,211
    SUCCESS MORTGAGE PARTNERS, INC. 12 6.78% $12,212
    M&T Bank 11 6.40% $7,975
    CMG MORTGAGE, INC. 11 6.57% $11,418
    PLANET HOME LENDING, LLC 10 6.45% $12,033
    AMERISAVE MORTGAGE CORPORATION 10 6.19% $13,053
    AmeriHome Mortgage Company, LLC 10 6.29% $12,239
    Fulton Bank 9 6.39% $8,223
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 9 6.94% $9,478
    NFM, INC. 8 6.70% $14,270
    Homesale Mortgage, LLC 8 7.00% $9,030
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 8 6.50% $11,304
    EMM LOANS LLC 8 6.41% $11,532
    AMERICAN FINANCIAL NETWORK, INC. 7 7.04% $16,913
    DHI MORTGAGE COMPANY, LTD. 7 5.39% $12,870
    Citizens Bank 7 6.41% $9,281
    MUTUAL OF OMAHA MORTGAGE, INC. 6 6.21% $15,611
    TIDEWATER MORTGAGE SERVICES, INC. 6 6.60% $10,290
    Prosperity Home Mortgage, LLC 6 6.90% $11,182
    GUARANTEED RATE AFFINITY, LLC 6 6.89% $13,480
    Keystone Funding, Inc. 6 5.77% $15,430
    LAKEVIEW LOAN SERVICING, LLC 6 6.13% $12,190
    CARDINAL FINANCIAL 5 7.05% $11,348
    RELIANCE FIRST CAPITAL, LLC 5 6.60% $14,058
    SUN WEST MORTGAGE COMPANY, INC. 5 6.39% $14,287
    Flagstar Bank, FSB 5 6.60% $16,508
    Carrington Mortgage Services, LLC 5 5.95% $11,644
    GENEVA FINANCIAL, LLC 5 7.00% $10,975
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 4 6.19% $15,049
    Meridian Bank Corporation 4 6.53% $9,171
    ABSOLUTE HOME MORTGAGE CORPORATION 4 6.78% $12,913
    ZILLOW HOME LOANS, LLC 4 6.13% $9,482
    Nations Lending Corporation 4 6.44% $12,900
    Gateway First Bank 4 6.38% $8,917
    BAYSHORE MORTGAGE FUNDING, LLC 3 6.92% $16,790
    ALLIED MORTGAGE GROUP, INC. 3 7.08% $11,536
    ARC HOME LLC 3 7.13% $13,412
    Century Mortgage Company DBA Century Lending Company 3 6.17% $15,404
    Equity Prime Mortgage LLC 3 6.58% $15,011
    LENDING CAPITAL GROUP Inc 3 6.79% $10,223
    Mortgage Research Center, LLC 3 6.88% $10,531
    Plains Commerce Bank 3 6.00% $12,647
    TOP FLITE FINANCIAL, INC. 3 6.88% $13,126
    Wells Fargo Bank 3 6.75% $7,680
    Neighborhood Loans, Inc. 2 7.06% $12,535
    The Federal Savings Bank 2 6.13% $15,637
    NATIONS DIRECT MORTGAGE, LLC 2 7.00% $11,649
    Wilmington Savings Fund Society, FSB 2 6.13% $10,830
    ENVOY MORTGAGE, LTD 2 6.19% $15,167
    EMBRACE HOME LOANS, INC. 2 6.75% $10,561
    UNION HOME MORTGAGE CORP. 2 6.94% $13,192
    RESIDENTIAL HOME MORTGAGE CORPORATION 2 6.88% $12,506
    Advisors Mortgage Group, L.L.C. 2 6.37% $12,021
    GSF Mortgage Corporation 2 7.13% $18,567
    MICHIGAN MUTUAL, INC. 2 6.19% $12,936
    MORTGAGE SOLUTIONS OF COLORADO, LLC 2 6.75% $18,438
    FIRST ALLIANCE HOME MORTGAGE, LLC 2 7.25% $17,543
    MORTGAGE ACCESS CORP. 2 6.31% $9,141
    PHH Mortgage Corporation 1 5.63% $10,141
    PIKE CREEK MORTGAGE SERVICES, INC. 1 7.63% $14,852
    PREMIA MORTGAGE, LLC 1 6.68% $6,118
    PRIMARY RESIDENTIAL MORTGAGE, INC. 1 6.75% $10,680
    PRIMELENDING, A PLAINSCAPITAL COMPANY 1 6.75% $14,617
    Princeton Mortgage Corporation 1 6.13% $9,880
    CityWorth Mortgage LLC 1 6.13% $21,717
    Quaint Oak Mortgage, LLC 1 6.63% $12,073
    CHERRY CREEK MORTGAGE, LLC 1 6.63% $2,715
    MEMBERS 1ST FEDERAL CREDIT UNION 1 6.38% $12,452
    ROYAL UNITED MORTGAGE LLC 1 6.75% $18,155
    BAY EQUITY LLC 1 7.25% $8,467
    American Mortgage & Equity Consultants, Inc. 1 6.75% $11,537
    T2 FINANCIAL LLC 1 6.63% $15,565
    The Union Bank Company 1 6.50% $12,502
    AMERICAN FINANCING CORPORATION 1 5.88% $11,205
    York Traditions Bank 1 6.63% $9,222
    Truist 1 7.75% $7,889
    AMERICAN FINANCIAL RESOURCES, INC. 1 7.25% $8,155
    VILLAGE CAPITAL MORTGAGE 1 6.75% $2,137
    MID AMERICA MORTGAGE, INC. 1 8.25% $14,537
    MLB RESIDENTIAL LENDING, LLC 1 7.75% $23,196
    BAY-VALLEY MORTGAGE GROUP 1 6.75% $8,018
    Acre Mortgage and Financial Inc 1 6.63% $11,017
    MEMBER FIRST MORTGAGE, LLC 1 7.25% $10,418
    LOANPAL, LLC 1 5.63% $17,378
    LOANLEADERS OF AMERICA, INC. 1 5.63% $15,940
    LIBERTY HOME MORTGAGE CORPORATION 1 7.00% $12,736
    NATION ONE MORTGAGE CORPORATION 1 6.63% $17,003
    HOMESIDE FINANCIAL, LLC 1 7.13% $16,687
    HARTFORD FUNDING, LTD. 1 6.13% $18,143
    Northeast Equitable Mortgage, LLC 1 6.00% $11,762
    GREENTREE MORTGAGE COMPANY, L.P. 1 6.50% $5,060
    NP, Inc. 1 7.13% $20,021
    PANORAMA MORTGAGE GROUP, LLC 1 5.63% $20,126
    FIRST HERITAGE FINANCIAL, LLC 1 8.38% $8,830

    The top Reading FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 110 FHA loans originated. Their average total fees are $10,646, which is $441 lower than the next largest lender, CROSSCOUNTRY MORTGAGE, LLC.

    The lowest fee Reading FHA lenders (with over 10 loans originated) are Customers Bank ($7,428), M&T Bank ($7,975), PLAZA HOME MORTGAGE, INC. ($8,120), Mortgage America, Inc. ($8,978) and Univest Bank and Trust Co. ($10,167).

    The lowest rate Reading FHA lenders (with over 10 loans originated) are Mr. Cooper ( Nationstar Mortgage ) (5.89%), AMERISAVE MORTGAGE CORPORATION (6.19%), UNITED WHOLESALE MORTGAGE, LLC (6.19%), PENNYMAC LOAN SERVICES, LLC (6.22%) and PLAZA HOME MORTGAGE, INC. (6.27%).

    Reading FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    READING, PA BERKS 2022 $420,680 $538,650 $651,050 $809,150
    READING, PA BERKS 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).