Salem FHA Loan Rates, Closing Costs & Stats

Salem, OH

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 0.22% for the week of 2025-06-20, 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 (2025-06-13) was 7.01% and one month ago for the week of 2025-05-16, the average rate was 6.77%.

The average rate one year ago was 7.22%.

For refis of the same type during the week of 2025-06-20, the average rate was 0.65%.

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).