State College FHA Loans

STATE COLLEGE, PA

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.

State College's 40 lenders originated 183 FHA loans during 2021. The total origination value was $34,835,000, with an average FHA loan value of $190,355.

State College FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in State College averaged 5.33% for the week of 2022-05-13, compared to the national average (all FHA variants) of 5.361% for the same period.

The average rate for the prior week (2022-05-06) was 5.16% and one month ago for the week of 2022-04-08, the average rate was 4.93%.

The average rate one year ago was 3.04%.

For refis of the same type during the week of 2022-05-13, the average rate was 5.1%.

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

State College FHA Loan Lenders by Rates & Fees

The below table looks at the average fees and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the State College level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
QUICKEN LOANS, LLC 27 2.84% $6,183
CALIBER HOME LOANS, INC. 11 2.83% $7,159
Citizens Bank 8 2.73% $7,883
PENNYMAC LOAN SERVICES, LLC 8 2.95% $5,388
LAKEVIEW LOAN SERVICING, LLC 7 3.13% $6,156
Manufacturers and Traders Trust Company 7 2.96% $8,437
BROKER SOLUTIONS, INC. 6 2.67% $9,716
UNITED WHOLESALE MORTGAGE, LLC 6 2.67% $7,049
HOME POINT FINANCIAL CORPORATION 6 3.31% $6,923
FREEDOM MORTGAGE CORPORATION 5 2.83% $6,229
FINANCE OF AMERICA MORTGAGE LLC 4 2.84% $5,492
VILLAGE CAPITAL & INVESTMENT LLC 3 2.75% $2,257
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 3 3.54% $7,770
HOMESIDE FINANCIAL, LLC 3 3.17% $7,182
LOANDEPOT.COM, LLC 3 3.04% $8,057
Mr. Cooper ( Nationstar Mortgage ) 3 3.38% $2,509
MICHIGAN MUTUAL, INC. 2 2.81% $9,916
Century Mortgage Company DBA Century Lending Company 2 2.81% $8,292
Lakeview Community Capital, LLC 2 3.06% $5,778
NEWREZ LLC 2 3.00% $5,496
AmeriServ Financial Bank 1 2.00% $5,767
MILLENNIUM FINANCIAL GROUP, INC. 1 2.75% $10,952
AMERICAN FINANCIAL RESOURCES, INC. 1 3.63% $8,029
MYCUMORTGAGE, LLC 1 2.88% $6,593
NORWICH COMMERCIAL GROUP, INC. 1 3.25% $9,003
Paramount Residential Mortgage Group, Inc. 1 4.25% $6,165
AMERISAVE MORTGAGE CORPORATION 1 2.75% $5,451
PLAZA HOME MORTGAGE, INC. 1 3.13% $5,985
AMERICAN PACIFIC MORTGAGE CORPORATION 1 3.25% $7,683
Residential Mortgage Solutions, Inc. 1 4.13% $16,897
SOVEREIGN LENDING GROUP INCORPORATED 1 2.75% $7,715
STEARNS LENDING, LLC 1 2.25% $14,845
SUN WEST MORTGAGE COMPANY, INC. 1 2.75% $13,485
TOP FLITE FINANCIAL, INC. 1 3.63% $12,426
First Commonwealth Bank 1 2.50% $7,689
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 1 3.25% $6,321
Carrington Mortgage Services, LLC 1 4.50% $4,096
TOWNE MORTGAGE COMPANY 1 3.50% $9,822
Barrington Bank & Trust Company, N.A. 1 3.50% $11,324
AMERICAN FINANCING CORPORATION 1 2.75% $9,054

The top State College FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 27 FHA loans originated. Their average total fees are $6,183, which is $976 lower than the next largest lender, CALIBER HOME LOANS, INC..

The lowest fee State College FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC ($6,183), CALIBER HOME LOANS, INC. ($7,159), .

The lowest rate State College FHA lenders (with over 10 loans originated) are CALIBER HOME LOANS, INC. (2.83%), QUICKEN LOANS, LLC (2.84%), .

State College FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
STATE COLLEGE, PA CENTRE 2022 $420,680 $538,650 $651,050 $809,150

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - State College (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Price (YoY Change) Average Listing Price (YoY) MSA/US Median Price Ratio Active Listings
2018-01-01 $242,450 (11.6%) $319,476 (9.8%) 0.89 220
2018-02-01 $259,000 (7.3%) $340,962 (8.9%) 0.93 234
2018-03-01 $299,900 (8.5%) $367,889 (10.0%) 1.04 268
2018-04-01 $307,500 (10.2%) $383,940 (16.7%) 1.03 272
2018-05-01 $292,950 (8.5%) $375,190 (17.3%) 0.98 305
2018-06-01 $315,000 (17.5%) $384,362 (19.2%) 1.05 324
2018-07-01 $295,824 (16.0%) $368,851 (19.7%) 0.99 315
2018-08-01 $271,200 (7.1%) $360,516 (15.8%) 0.91 301
2018-09-01 $267,990 (3.1%) $346,101 (8.4%) 0.90 316
2018-10-01 $262,450 (2.8%) $338,336 (5.7%) 0.88 314
2018-11-01 $254,400 (1.8%) $332,426 (2.4%) 0.85 303
2018-12-01 $239,900 (6.6%) $322,891 (0.7%) 0.82 257
2019-01-01 $255,000 (5.2%) $313,905 (-1.7%) 0.88 210
2019-02-01 $288,000 (11.2%) $327,492 (-4.0%) 0.96 240
2019-03-01 $319,314 (6.5%) $359,780 (-2.2%) 1.04 279
2019-04-01 $337,314 (9.7%) $393,410 (2.5%) 1.06 301
2019-05-01 $328,500 (12.1%) $397,210 (5.9%) 1.01 305
2019-06-01 $325,000 (3.2%) $379,026 (-1.4%) 1.00 349
2019-07-01 $316,000 (6.8%) $370,763 (0.5%) 0.98 356
2019-08-01 $310,957 (14.7%) $368,952 (2.3%) 0.98 352
2019-09-01 $300,200 (12.0%) $361,210 (4.4%) 0.95 330
2019-10-01 $269,950 (2.9%) $335,756 (-0.8%) 0.86 322
2019-11-01 $269,000 (5.7%) $328,106 (-1.3%) 0.87 298
2019-12-01 $252,500 (5.3%) $317,813 (-1.6%) 0.84 246
2020-01-01 $259,950 (1.9%) $320,498 (2.1%) 0.87 206
2020-02-01 $279,900 (-2.8%) $351,248 (7.3%) 0.90 217
2020-03-01 $310,500 (-2.8%) $372,980 (3.7%) 0.97 260
2020-04-01 $319,450 (-5.3%) $380,291 (-3.3%) 1.00 267
2020-05-01 $319,900 (-2.6%) $377,394 (-5.0%) 0.97 296
2020-06-01 $329,450 (1.4%) $382,140 (0.8%) 0.96 300
2020-07-01 $329,000 (4.1%) $379,770 (2.4%) 0.94 297
2020-08-01 $325,000 (4.5%) $376,876 (2.2%) 0.93 293
2020-09-01 $299,700 (-0.2%) $369,692 (2.4%) 0.86 274
2020-10-01 $319,000 (18.2%) $382,805 (14.0%) 0.91 251
2020-11-01 $321,500 (19.5%) $393,585 (20.0%) 0.92 202
2020-12-01 $312,500 (23.8%) $379,888 (19.5%) 0.92 183
2021-01-01 $299,900 (15.4%) $368,109 (14.9%) 0.88 161
2021-02-01 $315,000 (12.5%) $362,583 (3.2%) 0.91 132
2021-03-01 $325,000 (4.7%) $383,768 (2.9%) 0.91 122
2021-04-01 $292,200 (-8.5%) $374,221 (-1.6%) 0.79 135
2021-05-01 $315,000 (-1.5%) $383,600 (1.6%) 0.83 158
2021-06-01 $317,000 (-3.8%) $390,827 (2.3%) 0.82 164
2021-07-01 $325,000 (-1.2%) $396,732 (4.5%) 0.84 176
2021-08-01 $304,900 (-6.2%) $378,536 (0.4%) 0.80 187
2021-09-01 $294,990 (-1.6%) $368,167 (-0.4%) 0.78 175
2021-10-01 $285,000 (-10.7%) $358,807 (-6.3%) 0.75 176
2021-11-01 $287,000 (-10.7%) $369,033 (-6.2%) 0.76 145
2021-12-01 $294,450 (-5.8%) $357,815 (-5.8%) 0.79 112
2022-01-01 $289,000 (-3.6%) $373,764 (1.5%) 0.77 94
2022-02-01 $307,445 (-2.4%) $430,699 (18.8%) 0.78 82
2022-03-01 $324,950 (0.0%) $418,124 (9.0%) 0.80 101
2022-04-01 $339,900 (16.3%) $428,447 (14.5%) 0.80 118
State College's median listing price for 2022-04-01 was $339,900, a difference of $47,700 (16.3%) versus the prior year and $14,950 versus the prior month.

State College's median listing price comes in at 80% of the national average.

State College's average listing price for 2022-04-01 was $428,447, a difference of $54,226 (14.5%) versus the prior year and $10,323 versus the prior month.

For the 2022-04-01 period, State College had 118 MLS listings, a difference of 17 listings (17%) versus the prior month and -17 listings (-13%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - State College (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 81 days 1,776 sqft
2018-02-01 88 days 1,827 sqft
2018-03-01 61 days 2,010 sqft
2018-04-01 53 days 2,106 sqft
2018-05-01 52 days 2,086 sqft
2018-06-01 58 days 2,185 sqft
2018-07-01 65 days 2,090 sqft
2018-08-01 69 days 2,134 sqft
2018-09-01 74 days 2,100 sqft
2018-10-01 81 days 2,054 sqft
2018-11-01 85 days 2,006 sqft
2018-12-01 86 days 1,978 sqft
2019-01-01 84 days 1,989 sqft
2019-02-01 87 days 2,050 sqft
2019-03-01 92 days 2,148 sqft
2019-04-01 47 days 2,272 sqft
2019-05-01 46 days 2,299 sqft
2019-06-01 56 days 2,194 sqft
2019-07-01 62 days 2,139 sqft
2019-08-01 65 days 2,130 sqft
2019-09-01 67 days 2,077 sqft
2019-10-01 72 days 1,966 sqft
2019-11-01 71 days 1,862 sqft
2019-12-01 83 days 1,790 sqft
2020-01-01 83 days 1,778 sqft
2020-02-01 57 days 1,849 sqft
2020-03-01 39 days 1,938 sqft
2020-04-01 56 days 1,944 sqft
2020-05-01 72 days 1,944 sqft
2020-06-01 67 days 2,002 sqft
2020-07-01 56 days 1,998 sqft
2020-08-01 53 days 1,963 sqft
2020-09-01 57 days 2,043 sqft
2020-10-01 64 days 2,088 sqft
2020-11-01 73 days 2,100 sqft
2020-12-01 79 days 2,014 sqft
2021-01-01 71 days 1,861 sqft
2021-02-01 45 days 1,860 sqft
2021-03-01 48 days 1,893 sqft
2021-04-01 43 days 1,791 sqft
2021-05-01 36 days 1,854 sqft
2021-06-01 44 days 1,852 sqft
2021-07-01 46 days 1,847 sqft
2021-08-01 44 days 1,901 sqft
2021-09-01 52 days 1,771 sqft
2021-10-01 55 days 1,792 sqft
2021-11-01 53 days 1,782 sqft
2021-12-01 65 days 1,794 sqft
2022-01-01 73 days 1,868 sqft
2022-02-01 58 days 1,922 sqft
2022-03-01 34 days 1,868 sqft
2022-04-01 35 days 1,924 sqft
State College's median listing age (time on market) for 2022-04-01 was 35 days. This is -19% shorter than the same period one year ago.

State College's median square footage for active listings during the 2022-04-01 period was 1,924 sqft. One year prior, the average listing was 1,791 sqft.

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).