Tuscaloosa FHA Loan Rates, Closing Costs & Stats

TUSCALOOSA, AL

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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.

    Tuscaloosa's 83 lenders originated 787 FHA loans during 2023. The total origination value was $195,465,000, with an average FHA loan value of $248,367.

    Tuscaloosa FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Tuscaloosa averaged 5.94% for the week of 2024-12-13, compared to the national average (all FHA variants) of 6.277% for the same period.

    Tuscaloosa's average FHA mortgage closing costs are $6,741.

    The average rate for the prior week (2024-12-06) was 6.11% and one month ago for the week of 2024-11-08, the average rate was 6.27%.

    The average rate one year ago was 6.49%.

    For refis of the same type during the week of 2024-12-13, the average rate was 6.47%.

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

    Tuscaloosa 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 Tuscaloosa level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    First Federal Bank, A FSB 156 6.09% $9,992
    MOVEMENT MORTGAGE, LLC 74 6.47% $9,738
    DHI MORTGAGE COMPANY, LTD. 67 5.18% $6,850
    QUICKEN LOANS, LLC 57 6.16% $8,597
    Renasant Bank 33 6.31% $9,605
    Regions Bank 29 6.19% $9,432
    UNITED WHOLESALE MORTGAGE, LLC 20 6.16% $10,270
    Synovus Bank 18 6.32% $9,820
    FirstBank 16 6.14% $10,874
    HOMESIDE FINANCIAL, LLC 15 6.78% $9,548
    Trustmark National Bank 15 6.43% $10,343
    United Community Bank 14 6.31% $9,488
    NEWREZ LLC 9 6.46% $9,572
    GUILD MORTGAGE COMPANY 8 6.58% $11,307
    PENNYMAC LOAN SERVICES, LLC 8 6.17% $11,805
    LOANDEPOT.COM, LLC 8 6.32% $9,437
    AMERICAN FINANCIAL RESOURCES, INC. 7 6.66% $11,946
    Mr. Cooper ( Nationstar Mortgage ) 7 5.95% $12,874
    FREEDOM MORTGAGE CORPORATION 7 6.93% $12,846
    Carrington Mortgage Services, LLC 6 6.06% $10,542
    BancorpSouth 6 6.40% $7,767
    Assurance Financial Group, L.L.C. 6 6.94% $9,437
    STOCKTON MORTGAGE CORPORATION 6 7.33% $10,131
    BROKER SOLUTIONS, INC. 6 6.89% $9,680
    INTERLINC MORTGAGE SERVICES, LLC 5 6.63% $7,922
    Northpointe Bank 5 6.98% $9,317
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 5 6.80% $9,677
    Consumer First Mortgage, Inc. 5 6.38% $9,804
    CROSSCOUNTRY MORTGAGE, LLC 5 6.61% $12,804
    Citizens Bank 4 6.41% $8,875
    AMERISAVE MORTGAGE CORPORATION 4 5.72% $10,700
    MILEND, INC. 4 6.75% $11,881
    TJC Mortgage, Inc. 3 6.21% $13,032
    CIS Financial Services, Inc. 3 6.75% $7,512
    LEADERONE FINANCIAL CORPORATION 3 7.00% $7,647
    MORIA DEVELOPMENT, INC. 3 7.71% $9,635
    Plains Commerce Bank 3 6.00% $10,854
    Princeton Mortgage Corporation 3 7.54% $9,315
    Prosperity Home Mortgage, LLC 3 6.33% $9,504
    RELIANCE FIRST CAPITAL, LLC 3 6.33% $7,238
    SmartBank 3 6.04% $8,169
    NATIONS DIRECT MORTGAGE, LLC 2 6.99% $14,307
    GMFS LLC 2 6.25% $11,609
    UNION HOME MORTGAGE CORP. 2 6.25% $13,219
    Mortgage Research Center, LLC 2 7.63% $6,271
    FBC MORTGAGE, LLC 2 6.38% $15,894
    M&T Bank 2 6.25% $8,596
    PLANET HOME LENDING, LLC 2 5.69% $9,454
    PNC Bank 2 6.25% $7,857
    VILLAGE CAPITAL MORTGAGE 2 6.32% $11,942
    Wells Fargo Bank 2 6.63% $6,359
    SouthPoint Bank 2 5.75% $9,795
    SUN WEST MORTGAGE COMPANY, INC. 2 7.12% $10,087
    AMERICAN FINANCIAL NETWORK, INC. 2 7.38% $8,196
    ATLANTIC BAY MORTGAGE GROUP, L.L.C. 2 5.69% $13,819
    EMM LOANS LLC 1 6.50% $10,747
    Cornerstone First Mortgage, Inc 1 6.38% $9,735
    AmeriHome Mortgage Company, LLC 1 6.63% $6,464
    TOWNE MORTGAGE COMPANY 1 7.25% $10,969
    HOMEOWNERS FINANCIAL GROUP USA, LLC 1 6.63% $9,764
    AMERICAN PORTFOLIO MORTGAGE CORPORATION 1 6.00% $8,614
    VANDERBILT MORTGAGE AND FINANCE, INC. 1 6.50% $10,196
    Colony Bank 1 7.13% $10,359
    CMG MORTGAGE, INC. 1 6.25% $7,075
    HUNT MORTGAGE CORPORATION 1 6.88% $9,781
    CANOPY MORTGAGE, LLC 1 6.99% $11,323
    HOMEBRIDGE FINANCIAL SERVICES, INC. 1 6.88% $3,596
    ISERVE RESIDENTIAL LENDING, LLC 1 6.00% $18,234
    South State Bank 1 6.99% $6,459
    BAYSHORE MORTGAGE FUNDING, LLC 1 8.25% $7,416
    JPMorgan Chase Bank 1 6.00% $6,357
    Merchants Bank of Indiana 1 5.50% $9,793
    MID AMERICA MORTGAGE, INC. 1 7.75% $6,950
    Flagstar Bank, FSB 1 6.02% $6,163
    AVADIAN 1 6.63% $9,377
    KELLER MORTGAGE, LLC 1 6.13% $9,150
    First Horizon Bank 1 6.63% $7,880
    TOP FLITE FINANCIAL, INC. 1 7.00% $15,885
    Total Media Management, LLC 1 6.13% $4,631
    LIBERTY HOME MORTGAGE CORPORATION 1 6.25% $10,752
    NATIONWIDE MORTGAGE BANKERS, INC. 1 7.75% $6,612
    EVANSVILLE TEACHERS 1 6.50% $5,788
    NFM, INC. 1 7.13% $12,043

    The top Tuscaloosa FHA lender as defined by loan originations is First Federal Bank, A FSB, with 156 FHA loans originated. Their average total fees are $9,992, which is $254 higher than the next largest lender, MOVEMENT MORTGAGE, LLC.

    The lowest fee Tuscaloosa FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. ($6,850), QUICKEN LOANS, LLC ($8,597), Regions Bank ($9,432), United Community Bank ($9,488) and HOMESIDE FINANCIAL, LLC ($9,548).

    The lowest rate Tuscaloosa FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.18%), First Federal Bank, A FSB (6.09%), FirstBank (6.14%), UNITED WHOLESALE MORTGAGE, LLC (6.16%) and QUICKEN LOANS, LLC (6.16%).

    Tuscaloosa FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    TUSCALOOSA, AL GREENE 2022 $420,680 $538,650 $651,050 $809,150
    TUSCALOOSA, AL HALE 2022 $420,680 $538,650 $651,050 $809,150
    TUSCALOOSA, AL PICKENS 2022 $420,680 $538,650 $651,050 $809,150
    TUSCALOOSA, AL TUSCALOOSA 2022 $420,680 $538,650 $651,050 $809,150
    TUSCALOOSA, AL GREENE 2023 $472,030 $604,400 $730,525 $907,900
    TUSCALOOSA, AL HALE 2023 $472,030 $604,400 $730,525 $907,900
    TUSCALOOSA, AL PICKENS 2023 $472,030 $604,400 $730,525 $907,900
    TUSCALOOSA, AL TUSCALOOSA 2023 $472,030 $604,400 $730,525 $907,900

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Tuscaloosa (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 $189,900 (8.5%) $276,405 (12.2%) 0.70 842
    2018-02-01 $191,515 (10.1%) $279,008 (13.1%) 0.70 869
    2018-03-01 $198,500 (13.5%) $281,227 (10.4%) 0.70 875
    2018-04-01 $199,900 (7.9%) $286,192 (9.0%) 0.68 877
    2018-05-01 $199,900 (5.4%) $284,496 (7.8%) 0.67 856
    2018-06-01 $204,925 (7.9%) $291,475 (8.2%) 0.68 861
    2018-07-01 $214,900 (13.2%) $298,113 (10.6%) 0.72 901
    2018-08-01 $211,950 (9.1%) $299,680 (7.6%) 0.71 891
    2018-09-01 $214,900 (13.2%) $313,706 (11.6%) 0.72 901
    2018-10-01 $209,900 (10.5%) $310,776 (12.8%) 0.71 924
    2018-11-01 $209,900 (11.3%) $305,671 (10.1%) 0.71 915
    2018-12-01 $205,800 (10.8%) $307,521 (12.6%) 0.71 894
    2019-01-01 $208,029 (9.6%) $311,251 (12.6%) 0.72 874
    2019-02-01 $210,410 (9.9%) $317,988 (14.0%) 0.71 879
    2019-03-01 $217,043 (9.3%) $325,682 (15.8%) 0.71 853
    2019-04-01 $222,425 (11.3%) $327,746 (14.5%) 0.71 836
    2019-05-01 $238,250 (19.2%) $336,665 (18.3%) 0.74 852
    2019-06-01 $232,395 (13.4%) $335,666 (15.2%) 0.73 874
    2019-07-01 $238,225 (10.9%) $348,875 (17.0%) 0.75 891
    2019-08-01 $238,536 (12.5%) $359,414 (19.9%) 0.76 888
    2019-09-01 $236,491 (10.1%) $354,816 (13.1%) 0.76 907
    2019-10-01 $234,250 (11.6%) $351,751 (13.2%) 0.76 920
    2019-11-01 $229,900 (9.5%) $343,437 (12.4%) 0.75 893
    2019-12-01 $224,099 (8.9%) $340,779 (10.8%) 0.75 887
    2020-01-01 $223,825 (7.6%) $344,552 (10.7%) 0.75 823
    2020-02-01 $235,900 (12.1%) $344,007 (8.2%) 0.77 790
    2020-03-01 $238,710 (10.0%) $347,992 (6.9%) 0.75 768
    2020-04-01 $245,075 (10.2%) $355,350 (8.4%) 0.77 763
    2020-05-01 $240,000 (0.7%) $342,506 (1.7%) 0.73 727
    2020-06-01 $245,150 (5.5%) $349,706 (4.2%) 0.72 685
    2020-07-01 $249,900 (4.9%) $351,741 (0.8%) 0.72 684
    2020-08-01 $249,900 (4.8%) $345,615 (-3.8%) 0.72 684
    2020-09-01 $249,950 (5.7%) $349,878 (-1.4%) 0.72 665
    2020-10-01 $249,900 (6.7%) $345,034 (-1.9%) 0.72 694
    2020-11-01 $249,900 (8.7%) $350,561 (2.1%) 0.73 663
    2020-12-01 $249,950 (11.5%) $353,860 (3.8%) 0.74 602
    2021-01-01 $249,000 (11.3%) $351,506 (2.0%) 0.74 552
    2021-02-01 $252,950 (7.2%) $352,698 (2.5%) 0.74 554
    2021-03-01 $269,200 (12.8%) $351,306 (1.0%) 0.76 540
    2021-04-01 $276,500 (12.8%) $376,350 (5.9%) 0.75 470
    2021-05-01 $275,000 (14.6%) $384,241 (12.2%) 0.73 422
    2021-06-01 $277,425 (13.2%) $387,941 (10.9%) 0.73 439
    2021-07-01 $270,448 (8.2%) $378,135 (7.5%) 0.71 479
    2021-08-01 $267,271 (7.0%) $380,523 (10.1%) 0.71 465
    2021-09-01 $265,796 (6.3%) $383,530 (9.6%) 0.71 468
    2021-10-01 $259,900 (4.0%) $379,199 (9.9%) 0.69 461
    2021-11-01 $261,324 (4.6%) $378,516 (8.0%) 0.70 440
    2021-12-01 $266,549 (6.6%) $370,245 (4.6%) 0.72 429
    2022-01-01 $249,900 (0.4%) $362,835 (3.2%) 0.68 350
    2022-02-01 $257,298 (1.7%) $373,790 (6.0%) 0.67 355
    2022-03-01 $276,000 (2.5%) $370,936 (5.6%) 0.69 349
    2022-04-01 $299,900 (8.5%) $382,387 (1.6%) 0.71 341
    2022-05-01 $299,925 (9.1%) $379,823 (-1.2%) 0.69 415
    2022-06-01 $308,895 (11.3%) $377,326 (-2.7%) 0.69 502
    2022-07-01 $310,000 (14.6%) $383,849 (1.5%) 0.70 596
    2022-08-01 $309,673 (15.9%) $385,939 (1.4%) 0.72 575
    2022-09-01 $304,975 (14.7%) $382,834 (-0.2%) 0.71 570
    2022-10-01 $303,816 (16.9%) $386,737 (2.0%) 0.71 520
    2022-11-01 $292,574 (12.0%) $377,983 (-0.1%) 0.70 531
    2022-12-01 $289,900 (8.8%) $378,944 (2.4%) 0.72 509
    2023-01-01 $291,561 (16.7%) $385,076 (6.1%) 0.72 509
    2023-02-01 $293,671 (14.1%) $394,562 (5.6%) 0.71 522
    2023-03-01 $295,950 (7.2%) $396,249 (6.8%) 0.70 507
    2023-04-01 $299,250 (-0.2%) $421,612 (10.3%) 0.70 496
    2023-05-01 $297,000 (-1.0%) $436,892 (15.0%) 0.67 476
    2023-06-01 $297,399 (-3.7%) $446,645 (18.4%) 0.67 485
    2023-07-01 $294,900 (-4.9%) $435,404 (13.4%) 0.67 464
    2023-08-01 $288,750 (-6.8%) $427,389 (10.7%) 0.66 485
    2023-09-01 $280,000 (-8.2%) $413,149 (7.9%) 0.65 521
    2023-10-01 $295,000 (-2.9%) $414,372 (7.2%) 0.69 604
    2023-11-01 $289,900 (-0.9%) $410,990 (8.7%) 0.69 639
    2023-12-01 $289,900 (0.0%) $413,964 (9.2%) 0.71 610
    2024-01-01 $298,575 (2.4%) $429,711 (11.6%) 0.73 554
    2024-02-01 $299,900 (2.1%) $456,606 (15.7%) 0.72 569
    2024-03-01 $299,900 (1.3%) $460,388 (16.2%) 0.71 602
    2024-04-01 $302,950 (1.2%) $463,617 (10.0%) 0.70 595
    2024-05-01 $308,900 (4.0%) $462,912 (6.0%) 0.70 627
    2024-06-01 $307,900 (3.5%) $457,970 (2.5%) 0.69 624
    2024-07-01 $309,900 (5.1%) $452,947 (4.0%) 0.71 640
    2024-08-01 $309,900 (7.3%) $434,659 (1.7%) 0.72 675
    2024-09-01 $309,900 (10.7%) $434,871 (5.3%) 0.73 657
    2024-10-01 $313,675 (6.3%) $436,934 (5.4%) 0.74 680
    2024-11-01 $299,900 (3.5%) $431,628 (5.0%) 0.72 681
    Tuscaloosa's median listing price for 2024-11-01 was $299,900, a difference of $10,000 (3.5%) versus the prior year and $-13,775 versus the prior month.

    Tuscaloosa's median listing price comes in at 72% of the national average.

    Tuscaloosa's average listing price for 2024-11-01 was $431,628, a difference of $20,638 (5.0%) versus the prior year and $-5,306 versus the prior month.

    For the 2024-11-01 period, Tuscaloosa had 681 MLS listings, a difference of 1 listings (0%) versus the prior month and 42 listings (7%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Tuscaloosa (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 93 days 1,773 sqft
    2018-02-01 88 days 1,776 sqft
    2018-03-01 61 days 1,761 sqft
    2018-04-01 60 days 1,770 sqft
    2018-05-01 63 days 1,767 sqft
    2018-06-01 67 days 1,763 sqft
    2018-07-01 68 days 1,810 sqft
    2018-08-01 67 days 1,791 sqft
    2018-09-01 68 days 1,774 sqft
    2018-10-01 72 days 1,754 sqft
    2018-11-01 73 days 1,736 sqft
    2018-12-01 89 days 1,718 sqft
    2019-01-01 94 days 1,717 sqft
    2019-02-01 86 days 1,710 sqft
    2019-03-01 76 days 1,732 sqft
    2019-04-01 64 days 1,766 sqft
    2019-05-01 64 days 1,813 sqft
    2019-06-01 61 days 1,797 sqft
    2019-07-01 65 days 1,847 sqft
    2019-08-01 66 days 1,837 sqft
    2019-09-01 64 days 1,817 sqft
    2019-10-01 64 days 1,803 sqft
    2019-11-01 78 days 1,804 sqft
    2019-12-01 94 days 1,801 sqft
    2020-01-01 97 days 1,779 sqft
    2020-02-01 86 days 1,774 sqft
    2020-03-01 69 days 1,779 sqft
    2020-04-01 74 days 1,800 sqft
    2020-05-01 77 days 1,774 sqft
    2020-06-01 74 days 1,798 sqft
    2020-07-01 63 days 1,799 sqft
    2020-08-01 59 days 1,765 sqft
    2020-09-01 74 days 1,800 sqft
    2020-10-01 81 days 1,750 sqft
    2020-11-01 79 days 1,755 sqft
    2020-12-01 82 days 1,727 sqft
    2021-01-01 71 days 1,642 sqft
    2021-02-01 48 days 1,602 sqft
    2021-03-01 47 days 1,611 sqft
    2021-04-01 57 days 1,604 sqft
    2021-05-01 58 days 1,647 sqft
    2021-06-01 49 days 1,650 sqft
    2021-07-01 48 days 1,746 sqft
    2021-08-01 45 days 1,797 sqft
    2021-09-01 49 days 1,810 sqft
    2021-10-01 57 days 1,850 sqft
    2021-11-01 61 days 1,850 sqft
    2021-12-01 59 days 1,828 sqft
    2022-01-01 65 days 1,712 sqft
    2022-02-01 53 days 1,711 sqft
    2022-03-01 40 days 1,783 sqft
    2022-04-01 39 days 1,904 sqft
    2022-05-01 37 days 1,939 sqft
    2022-06-01 36 days 1,994 sqft
    2022-07-01 39 days 2,040 sqft
    2022-08-01 52 days 2,052 sqft
    2022-09-01 61 days 2,050 sqft
    2022-10-01 71 days 2,050 sqft
    2022-11-01 67 days 1,987 sqft
    2022-12-01 68 days 1,959 sqft
    2023-01-01 73 days 1,888 sqft
    2023-02-01 59 days 1,845 sqft
    2023-03-01 55 days 1,885 sqft
    2023-04-01 53 days 1,913 sqft
    2023-05-01 51 days 1,890 sqft
    2023-06-01 47 days 1,867 sqft
    2023-07-01 49 days 1,870 sqft
    2023-08-01 51 days 1,861 sqft
    2023-09-01 50 days 1,849 sqft
    2023-10-01 50 days 1,845 sqft
    2023-11-01 52 days 1,827 sqft
    2023-12-01 60 days 1,837 sqft
    2024-01-01 80 days 1,834 sqft
    2024-02-01 67 days 1,809 sqft
    2024-03-01 52 days 1,802 sqft
    2024-04-01 52 days 1,820 sqft
    2024-05-01 51 days 1,839 sqft
    2024-06-01 54 days 1,881 sqft
    2024-07-01 57 days 1,887 sqft
    2024-08-01 57 days 1,859 sqft
    2024-09-01 62 days 1,866 sqft
    2024-10-01 65 days 1,870 sqft
    2024-11-01 63 days 1,846 sqft
    Tuscaloosa's median listing age (time on market) for 2024-11-01 was 63 days. This is 22% longer than the same period one year ago.

    Tuscaloosa's median square footage for active listings during the 2024-11-01 period was 1,846 sqft. One year prior, the average listing was 1,827 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).