Somerset FHA Loan Rates, Closing Costs & Stats

Somerset, KY

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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.

    Somerset's 38 lenders originated 134 FHA loans during 2023. The total origination value was $25,190,000, with an average FHA loan value of $187,985.

    Somerset FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Somerset averaged 6.3% for the week of 2024-11-08, compared to the national average (all FHA variants) of 6.425% for the same period.

    Somerset's average FHA mortgage closing costs are $6,631.

    The average rate for the prior week (2024-11-01) was 6.27% and one month ago for the week of 2024-10-04, the average rate was 6.19%.

    The average rate one year ago was 7.44%.

    For refis of the same type during the week of 2024-11-08, the average rate was 6.33%.

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

    Somerset 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 Somerset level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    HOMESIDE FINANCIAL, LLC 22 6.43% $9,804
    QUICKEN LOANS, LLC 21 6.33% $9,687
    UNITED WHOLESALE MORTGAGE, LLC 9 6.33% $10,133
    Northpointe Bank 6 6.35% $8,871
    Republic State Mortgage Co. 6 6.21% $9,951
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 5 6.58% $7,596
    AMERISAVE MORTGAGE CORPORATION 5 5.95% $7,900
    BROKER SOLUTIONS, INC. 5 6.93% $8,932
    LOANDEPOT.COM, LLC 4 6.34% $12,087
    STOCKTON MORTGAGE CORPORATION 3 6.33% $9,066
    ZILLOW HOME LOANS, LLC 2 6.44% $7,324
    CARDINAL FINANCIAL 2 5.75% $7,531
    Forcht Bank 2 5.81% $4,865
    FREEDOM MORTGAGE CORPORATION 2 7.00% $11,320
    Magnolia Bank 2 7.56% $10,045
    Mr. Cooper ( Nationstar Mortgage ) 2 6.69% $13,367
    PENNYMAC LOAN SERVICES, LLC 2 5.25% $8,073
    POLARIS HOME FUNDING CORP. 2 6.44% $10,171
    SUN WEST MORTGAGE COMPANY, INC. 2 7.38% $4,975
    Truist 2 5.88% $7,674
    U.S. Bank 2 6.06% $6,536
    AMERICAN FINANCING CORPORATION 1 5.63% $9,247
    DAS Acquisition Company, LLC 1 6.63% $8,167
    TOP FLITE FINANCIAL, INC. 1 7.00% $5,771
    PNC Bank 1 7.00% $6,082
    AMERICAN FINANCIAL NETWORK, INC. 1 6.63% $7,772
    CROSSCOUNTRY MORTGAGE, LLC 1 7.25% $7,602
    CHURCHILL MORTGAGE CORPORATION 1 6.75% $13,096
    ROSS MORTGAGE CORPORATION 1 7.75% $12,914
    Equity Prime Mortgage LLC 1 6.63% $5,202
    RUOFF MORTGAGE COMPANY, INC. 1 7.25% $4,374
    SOUTHPOINT FINANCIAL SERVICES, INC. 1 6.50% $11,198
    GUARANTEED RATE, INC. 1 5.00% $17,798
    HOMEBRIDGE FINANCIAL SERVICES, INC. 1 7.49% $8,995
    ENVOY MORTGAGE, LTD 1 6.75% $6,760
    ENDEAVOR CAPITAL, LLC. 1 6.25% $7,822
    Central Bank 1 5.88% $12,152
    MOVEMENT MORTGAGE, LLC 1 6.50% $7,547

    The top Somerset FHA lender as defined by loan originations is HOMESIDE FINANCIAL, LLC, with 22 FHA loans originated. Their average total fees are $9,804, which is $117 higher than the next largest lender, QUICKEN LOANS, LLC.

    The lowest fee Somerset FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC ($9,687), HOMESIDE FINANCIAL, LLC ($9,804), .

    The lowest rate Somerset FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (6.33%), HOMESIDE FINANCIAL, LLC (6.43%), .

    Somerset FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    SOMERSET, KY PULASKI 2022 $420,680 $538,650 $651,050 $809,150
    SOMERSET, KY PULASKI 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).