Springfield FHA Loan Rates, Closing Costs & Stats

SPRINGFIELD, IL

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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.

    Springfield's 51 lenders originated 333 FHA loans during 2023. The total origination value was $51,215,000, with an average FHA loan value of $153,799.

    Springfield FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Springfield averaged 6.34% for the week of 2024-11-08, compared to the national average (all FHA variants) of 6.425% for the same period.

    Springfield's average FHA mortgage closing costs are $5,160.

    The average rate for the prior week (2024-11-01) was 6.62% and one month ago for the week of 2024-10-04, the average rate was 5.84%.

    The average rate one year ago was 7.38%.

    For refis of the same type during the week of 2024-11-08, the average rate was 6.44%.

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

    Springfield 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 Springfield level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    FLAT BRANCH MORTGAGE, INC. 58 6.63% $5,991
    QUICKEN LOANS, LLC 44 6.43% $7,985
    INB 30 6.53% $5,485
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 24 6.98% $7,599
    Heartland Bank and Trust Company 23 6.40% $5,200
    DIAMOND RESIDENTIAL MORTGAGE CORPORATION 14 6.65% $8,061
    PNC Bank 13 6.82% $5,056
    GUARANTEED RATE, INC. 10 6.95% $8,075
    Plains Commerce Bank 8 6.81% $6,576
    LEADERONE FINANCIAL CORPORATION 7 7.37% $7,277
    FIRST STATE MORTGAGE SERVICES, LLC 5 6.98% $6,142
    United Community Bank 5 6.78% $5,810
    Regions Bank 5 6.65% $6,639
    PENNYMAC LOAN SERVICES, LLC 5 6.42% $8,971
    U.S. Bank 4 6.34% $4,914
    LOANDEPOT.COM, LLC 4 6.52% $7,715
    BROKER SOLUTIONS, INC. 4 6.47% $8,462
    Bank of Springfield 4 5.91% $4,492
    Carrollton Bank 3 6.92% $4,993
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 3 6.33% $5,217
    CALIBER HOME LOANS, INC. 3 6.04% $5,717
    FREEDOM MORTGAGE CORPORATION 3 6.58% $10,656
    DAS Acquisition Company, LLC 3 7.17% $7,510
    ZILLOW HOME LOANS, LLC 2 6.81% $7,216
    ENDEAVOR CAPITAL, LLC. 2 6.37% $7,508
    Mr. Cooper ( Nationstar Mortgage ) 2 5.75% $14,231
    Paramount Residential Mortgage Group, Inc. 2 7.38% $7,622
    Servion, Inc. 2 7.13% $6,170
    MEMBER FIRST MORTGAGE, LLC 1 7.63% $10,976
    Midland States Bank 1 6.00% $8,113
    Mortgage Research Center, LLC 1 7.63% $7,248
    Carrington Mortgage Services, LLC 1 6.63% $3,750
    M&T Bank 1 7.50% $3,545
    MUTUAL OF OMAHA MORTGAGE, INC. 1 6.75% $6,378
    MYCUMORTGAGE, LLC 1 6.13% $3,573
    NEWREZ LLC 1 6.75% $14,058
    OCMBC, INC. 1 7.63% $8,706
    VILLAGE CAPITAL MORTGAGE 1 5.25% $12,712
    FRONTIER FINANCIAL, INC. 1 6.75% $6,774
    Flanagan State Bank 1 7.13% $5,466
    Flagstar Bank, FSB 1 6.18% $5,241
    PRIMELENDING, A PLAINSCAPITAL COMPANY 1 6.75% $10,486
    CROSSCOUNTRY MORTGAGE, LLC 1 7.25% $5,924
    Citibank 1 7.25% $5,741
    CARDINAL FINANCIAL 1 5.75% $6,742
    SUN WEST MORTGAGE COMPANY, INC. 1 7.50% $10,169
    CIBM Bank 1 6.38% $5,704
    UNITED WHOLESALE MORTGAGE, LLC 1 5.50% $10,350
    GUILD MORTGAGE COMPANY 1 6.13% $3,803
    GSF Mortgage Corporation 1 6.13% $4,893
    Marine Bank 1 7.25% $3,381

    The top Springfield FHA lender as defined by loan originations is FLAT BRANCH MORTGAGE, INC., with 58 FHA loans originated. Their average total fees are $5,991, which is $1,994 lower than the next largest lender, QUICKEN LOANS, LLC.

    The lowest fee Springfield FHA lenders (with over 10 loans originated) are PNC Bank ($5,056), Heartland Bank and Trust Company ($5,200), INB ($5,485), FLAT BRANCH MORTGAGE, INC. ($5,991) and AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC ($7,599).

    The lowest rate Springfield FHA lenders (with over 10 loans originated) are Heartland Bank and Trust Company (6.40%), QUICKEN LOANS, LLC (6.43%), INB (6.53%), FLAT BRANCH MORTGAGE, INC. (6.63%) and DIAMOND RESIDENTIAL MORTGAGE CORPORATION (6.65%).

    Springfield FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    SPRINGFIELD, IL MENARD 2022 $420,680 $538,650 $651,050 $809,150
    SPRINGFIELD, IL SANGAMON 2022 $420,680 $538,650 $651,050 $809,150
    SPRINGFIELD, IL MENARD 2023 $472,030 $604,400 $730,525 $907,900
    SPRINGFIELD, IL SANGAMON 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).