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 52 lenders originated 276 FHA loans during 2023. The total origination value was $41,420,000, with an average FHA loan value of $150,072.

    Salem FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Salem averaged 6.36% for the week of 2024-11-08, compared to the national average (all FHA variants) of 6.425% for the same period.

    Salem's average FHA mortgage closing costs are $5,822.

    The average rate for the prior week (2024-11-01) was 6.44% and one month ago for the week of 2024-10-04, the average rate was 6.06%.

    The average rate one year ago was 7.3%.

    For refis of the same type during the week of 2024-11-08, the average rate was 7.26%.

    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 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 48 7.02% $4,896
    QUICKEN LOANS, LLC 39 6.36% $7,957
    CROSSCOUNTRY MORTGAGE, LLC 23 7.05% $8,750
    Ixonia Bank 19 7.14% $9,637
    The Huntington National Bank 16 7.20% $7,219
    First Commonwealth Bank 8 6.81% $6,201
    UNITED WHOLESALE MORTGAGE, LLC 7 6.80% $7,793
    POLARIS HOME FUNDING CORP. 7 6.70% $6,410
    CARDINAL FINANCIAL 5 6.03% $11,152
    NEWREZ LLC 5 6.73% $7,379
    WEST PENN FINANCIAL SERVICE CENTER, INC. 5 7.23% $6,928
    Equity Prime Mortgage LLC 4 7.16% $8,434
    AMERICAN PACIFIC MORTGAGE CORPORATION 4 6.59% $7,939
    First Federal Bank of the Midwest 3 6.33% $6,957
    JPMorgan Chase Bank 3 6.63% $5,761
    Nations Lending Corporation 3 6.38% $13,815
    AFFORDABLE MORTGAGE ADVISORS, LLC. 2 7.00% $6,634
    Flagstar Bank, FSB 2 6.50% $7,165
    FREEDOM MORTGAGE CORPORATION 2 6.75% $12,629
    Paramount Residential Mortgage Group, Inc. 2 7.00% $9,778
    HOWARD HANNA FINANCIAL SERVICES, INC. 2 6.50% $7,698
    RAPID MORTGAGE COMPANY 2 6.88% $7,587
    STOCKTON MORTGAGE CORPORATION 2 7.38% $9,236
    BROKER SOLUTIONS, INC. 2 6.94% $9,602
    LOANDEPOT.COM, LLC 2 6.63% $10,502
    Waterstone Mortgage Corporation 1 7.75% $3,211
    WesBanco 1 6.25% $5,862
    ZILLOW HOME LOANS, LLC 1 7.13% $8,537
    ALLIED MORTGAGE GROUP, INC. 1 6.13% $9,011
    AMCAP MORTGAGE, LTD. 1 7.13% $7,246
    AMERICAN FINANCIAL NETWORK, INC. 1 6.75% $13,634
    AMERICAN FINANCING CORPORATION 1 6.25% $7,642
    AMERISAVE MORTGAGE CORPORATION 1 6.25% $7,356
    Carrington Mortgage Services, LLC 1 5.63% $12,035
    DRAPER AND KRAMER MORTGAGE CORP. 1 6.75% $4,952
    EVERETT FINANCIAL, INC. 1 7.63% $1,910
    GSF Mortgage Corporation 1 7.25% $7,097
    Hometown Equity Mortgage, LLC 1 7.25% $10,173
    LEADERONE FINANCIAL CORPORATION 1 6.99% $5,609
    LIBERTY HOME MORTGAGE CORPORATION 1 8.25% $5,444
    Magnolia Bank 1 6.25% $10,294
    Merchants Bank of Indiana 1 7.00% $9,274
    MICHIGAN MUTUAL, INC. 1 7.13% $6,200
    Mortgage Research Center, LLC 1 7.63% $7,117
    Mr. Cooper ( Nationstar Mortgage ) 1 5.75% $8,601
    MYCUMORTGAGE, LLC 1 6.63% $8,552
    NATIONWIDE MORTGAGE BANKERS, INC. 1 7.13% $18,577
    PACIFIC RESIDENTIAL MORTGAGE, LLC 1 7.13% $6,731
    PREMIER LENDING, INC. 1 7.00% $7,721
    RELIANCE FIRST CAPITAL, LLC 1 6.63% $5,072
    Republic State Mortgage Co. 1 7.63% $4,696
    U.S. Bank 1 7.63% $5,895

    The top Salem FHA lender as defined by loan originations is FAIRWAY INDEPENDENT MORTGAGE CORPORATION, with 48 FHA loans originated. Their average total fees are $4,896, which is $3,061 lower than the next largest lender, QUICKEN LOANS, LLC.

    The lowest fee Salem FHA lenders (with over 10 loans originated) are FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($4,896), The Huntington National Bank ($7,219), QUICKEN LOANS, LLC ($7,957), CROSSCOUNTRY MORTGAGE, LLC ($8,750) and Ixonia Bank ($9,637).

    The lowest rate Salem FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (6.36%), FAIRWAY INDEPENDENT MORTGAGE CORPORATION (7.02%), CROSSCOUNTRY MORTGAGE, LLC (7.05%), Ixonia Bank (7.14%) and The Huntington National Bank (7.20%).

    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).