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 97 lenders originated 973 FHA loans during 2024. The total origination value was $234,625,000, with an average FHA loan value of $241,136.

    Tuscaloosa FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Tuscaloosa averaged -0.2% for the week of 2025-06-20, compared to the national average (all FHA variants) of 0% for the same period.

    Tuscaloosa's average FHA mortgage closing costs are $7,130.

    The average rate for the prior week (2025-06-13) was 6.78% and one month ago for the week of 2025-05-16, the average rate was 6.64%.

    The average rate one year ago was 6.5%.

    For refis of the same type during the week of 2025-06-20, the average rate was 0.18%.

    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 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    First Federal Bank, A FSB 208 6.00% $10,212
    DHI MORTGAGE COMPANY, LTD. 93 4.91% $7,003
    MOVEMENT MORTGAGE, LLC 87 6.55% $9,852
    Regions Bank 41 5.91% $9,314
    QUICKEN LOANS, LLC 36 6.43% $8,765
    MORIA DEVELOPMENT, INC. 30 6.41% $9,624
    UNITED WHOLESALE MORTGAGE, LLC 29 6.06% $11,118
    United Community Bank 28 6.36% $10,029
    STOCKTON MORTGAGE CORPORATION 26 6.47% $10,365
    SOUTHWEST FUNDING, LP 22 7.05% $9,280
    Renasant Bank 15 6.22% $10,796
    FREEDOM MORTGAGE CORPORATION 14 6.50% $11,402
    GUILD MORTGAGE COMPANY 12 6.89% $9,794
    Trustmark National Bank 9 6.60% $9,933
    RELIANCE FIRST CAPITAL, LLC 8 6.53% $7,931
    Synovus Bank 7 6.13% $9,602
    PENNYMAC LOAN SERVICES, LLC 7 6.03% $9,530
    Flagstar Bank, FSB 7 6.41% $8,737
    Carrington Mortgage Services, LLC 6 6.38% $11,217
    PLAZA HOME MORTGAGE, INC. 6 6.81% $8,731
    MORTGAGE INVESTORS GROUP, INC. 6 6.29% $8,596
    LOANDEPOT.COM, LLC 6 5.98% $11,455
    South State Bank 6 6.48% $9,976
    CMG MORTGAGE, INC. 5 6.63% $11,296
    Consumer First Mortgage, Inc. 5 6.40% $10,589
    AMERICAN FINANCIAL RESOURCES, INC. 5 5.85% $12,340
    CARDINAL FINANCIAL 5 5.82% $12,572
    M&T Bank 4 6.38% $9,555
    ATLANTIC BAY MORTGAGE GROUP, L.L.C. 4 6.72% $12,955
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 4 6.22% $6,977
    FirstBank 4 6.56% $8,351
    Prosperity Home Mortgage, LLC 4 6.44% $8,258
    BROKER SOLUTIONS, INC. 4 6.59% $10,397
    Mr. Cooper ( Nationstar Mortgage ) 4 6.56% $10,435
    Ameris Bank 3 6.50% $10,493
    SmartBank 3 5.92% $9,164
    TJC Mortgage, Inc. 3 6.54% $9,737
    PNC Bank 3 6.58% $9,532
    BancorpSouth 3 5.88% $9,791
    VILLAGE CAPITAL MORTGAGE 3 6.17% $6,143
    AMERICAN FINANCIAL NETWORK, INC. 3 7.13% $11,526
    LEADERONE FINANCIAL CORPORATION 3 6.63% $7,700
    SouthPoint Bank 3 6.13% $10,744
    AMERISAVE MORTGAGE CORPORATION 3 6.67% $11,407
    Assurance Financial Group, L.L.C. 2 7.19% $10,246
    CROSSCOUNTRY MORTGAGE, LLC 2 6.50% $9,437
    TOWNE MORTGAGE COMPANY 2 6.69% $6,223
    UNION HOME MORTGAGE CORP. 2 6.94% $12,576
    Victorian Finance, LLC 2 7.19% $9,013
    Wells Fargo Bank 2 6.63% $7,287
    BAYSHORE MORTGAGE FUNDING, LLC 2 6.56% $9,003
    HOMEBRIDGE FINANCIAL SERVICES, INC. 2 6.00% $7,589
    American Mortgage & Equity Consultants, Inc. 2 6.88% $10,148
    FIRST COLONY MORTGAGE CORPORATION 2 6.44% $8,952
    Equity Prime Mortgage LLC 2 7.50% $12,556
    ENDEAVOR CAPITAL, LLC. 2 7.06% $8,113
    Mortgage Research Center, LLC 2 6.75% $7,541
    Wolfe Financial, Inc 1 5.75% $15,832
    ALLIED MORTGAGE GROUP, INC. 1 6.25% $3,632
    AmeriHome Mortgage Company, LLC 1 6.63% $7,774
    Arvest Bank 1 6.38% $10,637
    CHURCHILL MORTGAGE CORPORATION 1 7.75% $8,108
    CIS Financial Services, Inc. 1 6.63% $5,031
    Citibank 1 6.75% $6,673
    CITY FIRST MORTGAGE SERVICES, L.L.C. 1 6.13% $10,720
    Cornerstone First Mortgage, Inc 1 6.25% $9,553
    EMM LOANS LLC 1 5.75% $7,161
    Evolve Bank & Trust 1 5.75% $12,323
    GMFS LLC 1 6.50% $12,177
    GoPrime Mortgage, Inc. 1 7.13% $6,241
    GUARANTEED RATE, INC. 1 6.75% $9,206
    Hamilton Mortgage Corporation 1 5.75% $10,197
    HOMESIDE FINANCIAL, LLC 1 6.63% $10,054
    LAKEVIEW LOAN SERVICING, LLC 1 7.25% $8,676
    LAND HOME FINANCIAL SERVICES, INC. 1 6.50% $21,093
    LOANPAL, LLC 1 5.50% $9,851
    Loan Simple, Inc. 1 7.63% $12,866
    MID AMERICA MORTGAGE, INC. 1 7.00% $5,732
    MILEND, INC. 1 6.25% $12,817
    MORTGAGE ACCESS CORP. 1 6.25% $12,595
    NATIONWIDE MORTGAGE BANKERS, INC. 1 6.75% $13,767
    NEWREZ LLC 1 7.25% $5,919
    NFM, INC. 1 5.75% $17,574
    NORWICH COMMERCIAL GROUP, INC. 1 5.25% $16,776
    PACIFIC RESIDENTIAL MORTGAGE, LLC 1 6.50% $9,400
    PENTAGON FEDERAL CREDIT UNION 1 5.88% $11,969
    PLANET HOME LENDING, LLC 1 6.25% $6,841
    Princeton Mortgage Corporation 1 6.63% $9,654
    Residential Acceptance Corporation 1 8.00% $5,955
    RESIDENTIAL BANCORP 1 7.13% $5,803
    SOUTHEAST MORTGAGE OF GEORGIA, INC. 1 7.00% $8,499
    SUN WEST MORTGAGE COMPANY, INC. 1 5.25% $14,680
    The Loan Store, Inc. 1 6.50% $7,055
    THE MORTGAGE FIRM, INC. 1 6.13% $9,065
    TOTAL MORTGAGE SERVICES, LLC 1 7.25% $21,912
    VAN DYK MORTGAGE CORPORATION 1 7.13% $8,161
    ACOPIA, LLC 1 7.13% $8,493

    The top Tuscaloosa FHA lender as defined by loan originations is First Federal Bank, A FSB, with 208 FHA loans originated. Their average total fees are $10,212, which is $3,209 higher than the next largest lender, DHI MORTGAGE COMPANY, LTD..

    The lowest fee Tuscaloosa FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. ($7,003), QUICKEN LOANS, LLC ($8,765), SOUTHWEST FUNDING, LP ($9,280), Regions Bank ($9,314) and MORIA DEVELOPMENT, INC. ($9,624).

    The lowest rate Tuscaloosa FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (4.91%), Regions Bank (5.91%), First Federal Bank, A FSB (6.00%), UNITED WHOLESALE MORTGAGE, LLC (6.06%) and Renasant Bank (6.22%).

    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

    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).