Salem FHA Loan Rates, Closing Costs & Stats

Salem, OH

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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.

    Salem's 46 lenders originated 256 FHA loans during 2024. The total origination value was $41,920,000, with an average FHA loan value of $163,750.

    Salem FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Salem averaged 0.52% for the week of 2025-07-04, compared to the national average (all FHA variants) of 0% for the same period.

    Salem's average FHA mortgage closing costs are $6,070.

    The average rate for the prior week (2025-06-27) was 6.71% and one month ago for the week of 2025-05-30, the average rate was 7.08%.

    The average rate one year ago was 7.01%.

    For refis of the same type during the week of 2025-07-04, the average rate was 0.75%.

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

    Salem 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 Salem level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    QUICKEN LOANS, LLC 44 6.60% $8,621
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 30 6.75% $4,749
    CROSSCOUNTRY MORTGAGE, LLC 28 6.82% $10,327
    Ixonia Bank 22 6.90% $9,557
    The Huntington National Bank 13 7.11% $6,942
    WEST PENN FINANCIAL SERVICE CENTER, INC. 6 6.75% $6,571
    FREEDOM MORTGAGE CORPORATION 5 6.55% $12,762
    POLARIS HOME FUNDING CORP. 5 6.80% $8,435
    HOWARD HANNA FINANCIAL SERVICES, INC. 4 6.66% $7,563
    The Farmers National Bank of Canfield 4 6.16% $7,782
    UNITED WHOLESALE MORTGAGE, LLC 4 5.97% $7,734
    Equity Prime Mortgage LLC 4 6.25% $6,886
    LIBERTY HOME MORTGAGE CORPORATION 3 6.75% $10,131
    RAPID MORTGAGE COMPANY 3 7.16% $6,516
    First Commonwealth Bank 3 6.33% $5,456
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 3 6.62% $5,092
    JPMorgan Chase Bank 2 7.12% $5,643
    MUTUAL OF OMAHA MORTGAGE, INC. 2 7.00% $8,494
    Nations Lending Corporation 2 6.63% $4,632
    Flagstar Bank, FSB 2 6.00% $7,199
    Mr. Cooper ( Nationstar Mortgage ) 2 6.44% $9,296
    AMERICAN FINANCIAL RESOURCES, INC. 2 6.50% $10,827
    PENNYMAC LOAN SERVICES, LLC 2 5.94% $6,265
    LOANDEPOT.COM, LLC 2 7.37% $7,478
    U.S. Bank 2 6.00% $7,720
    NATIONWIDE MORTGAGE BANKERS, INC. 1 6.75% $7,820
    AMERICAN FINANCIAL NETWORK, INC. 1 5.75% $12,724
    AMERISAVE MORTGAGE CORPORATION 1 5.25% $8,777
    BAYSHORE MORTGAGE FUNDING, LLC 1 6.75% $7,291
    BROKER SOLUTIONS, INC. 1 6.75% $5,138
    ENDEAVOR CAPITAL, LLC. 1 6.50% $8,280
    EVERETT FINANCIAL, INC. 1 6.75% $9,677
    FIRST COMMUNITY MORTGAGE, INC. 1 7.13% $5,143
    GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 1 6.50% $15,773
    LAKEVIEW LOAN SERVICING, LLC 1 6.75% $7,800
    LOANPAL, LLC 1 5.25% $7,156
    Mortgage Research Center, LLC 1 7.25% $6,833
    ALLIED MORTGAGE GROUP, INC. 1 6.25% $13,673
    NEWREZ LLC 1 7.63% $9,135
    PLANET HOME LENDING, LLC 1 5.99% $6,056
    ROYAL UNITED MORTGAGE LLC 1 5.50% $15,806
    RUOFF MORTGAGE COMPANY, INC. 1 6.63% $5,294
    S1L, Inc. 1 6.75% $5,385
    Sierra Pacific Mortgage Company, Inc. 1 6.13% $11,515
    Victorian Finance, LLC 1 7.13% $6,815
    VILLAGE CAPITAL MORTGAGE 1 7.13% $2,725

    The top Salem FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 44 FHA loans originated. Their average total fees are $8,621, which is $3,871 higher than the next largest lender, FAIRWAY INDEPENDENT MORTGAGE CORPORATION.

    The lowest fee Salem FHA lenders (with over 10 loans originated) are FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($4,749), The Huntington National Bank ($6,942), QUICKEN LOANS, LLC ($8,621), Ixonia Bank ($9,557) and CROSSCOUNTRY MORTGAGE, LLC ($10,327).

    The lowest rate Salem FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (6.60%), FAIRWAY INDEPENDENT MORTGAGE CORPORATION (6.75%), CROSSCOUNTRY MORTGAGE, LLC (6.82%), Ixonia Bank (6.90%) and The Huntington National Bank (7.11%).

    Salem FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    SALEM, OH COLUMBIANA 2022 $420,680 $538,650 $651,050 $809,150
    SALEM, OH COLUMBIANA 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).