Tuscaloosa FHA Loan Rates, Closing Costs & Stats

TUSCALOOSA, AL

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 87 lenders originated 968 FHA loans during 2022. The total origination value was $212,030,000, with an average FHA loan value of $219,039.

Tuscaloosa FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Tuscaloosa averaged 6.31% for the week of 2023-09-22, compared to the national average (all FHA variants) of 7.036% for the same period.

Tuscaloosa's average FHA mortgage closing costs are $6,327.

The average rate for the prior week (2023-09-15) was 6.66% and one month ago for the week of 2023-08-18, the average rate was 6.27%.

The average rate one year ago was 5.16%.

For refis of the same type during the week of 2023-09-22, the average rate was 5.84%.

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 2022 Avg. 30yFix Rate 2022 Avg. Closing Costs
First Federal Bank, A FSB 136 5.02% $8,313
MOVEMENT MORTGAGE, LLC 101 4.98% $8,036
QUICKEN LOANS, LLC 71 4.41% $8,759
DHI MORTGAGE COMPANY, LTD. 67 4.01% $7,999
SOUTHWEST FUNDING, LP 66 5.27% $9,308
Renasant Bank 40 5.05% $7,793
INTERLINC MORTGAGE SERVICES, LLC 34 5.04% $6,417
Regions Bank 31 4.93% $8,656
Synovus Bank 28 5.43% $8,805
FirstBank 26 5.13% $9,276
UNITED WHOLESALE MORTGAGE, LLC 26 5.33% $9,157
GUILD MORTGAGE COMPANY 17 5.21% $9,100
Trustmark National Bank 16 4.73% $8,353
LOANDEPOT.COM, LLC 15 4.81% $9,192
BancorpSouth 12 4.66% $7,773
FREEDOM MORTGAGE CORPORATION 11 5.05% $8,443
Hometown Lenders, Inc. 11 5.69% $9,814
PENNYMAC LOAN SERVICES, LLC 11 4.16% $8,833
Consumer First Mortgage, Inc. 11 4.75% $8,089
CROSSCOUNTRY MORTGAGE, LLC 11 5.26% $10,307
Mr. Cooper ( Nationstar Mortgage ) 10 4.30% $11,273
Carrington Mortgage Services, LLC 9 5.14% $9,449
AMERISAVE MORTGAGE CORPORATION 9 4.67% $10,540
BROKER SOLUTIONS, INC. 8 5.31% $9,505
CALIBER HOME LOANS, INC. 8 4.01% $8,376
Citizens Bank 8 4.50% $7,748
TJC Mortgage, Inc. 7 4.57% $8,839
HOMEBRIDGE FINANCIAL SERVICES, INC. 7 4.91% $8,012
Progress Bank and Trust 7 4.30% $7,191
Assurance Financial Group, L.L.C. 6 5.33% $7,550
BankFirst Financial Services 4 4.75% $8,262
RELIANCE FIRST CAPITAL, LLC 4 5.75% $7,103
Northpointe Bank 4 5.44% $10,758
LAKEVIEW LOAN SERVICING, LLC 4 4.75% $10,132
HOME POINT FINANCIAL CORPORATION 4 4.93% $10,389
Wells Fargo Bank 4 5.06% $2,706
PNC Bank 3 5.58% $8,106
LEADERONE FINANCIAL CORPORATION 3 4.79% $9,161
SouthPoint Bank 3 4.38% $3,653
FIRST COMMUNITY MORTGAGE, INC. 3 4.08% $7,700
NEWREZ LLC 3 3.54% $7,730
AMERICAN FINANCIAL RESOURCES, INC. 3 6.88% $10,174
GMFS LLC 3 6.04% $10,413
TOP FLITE FINANCIAL, INC. 2 4.63% $11,890
Bank of England 2 5.19% $9,982
BANK OF LITTLE ROCK MORTGAGE CORPORATION 2 3.75% $9,229
CIS Financial Services, Inc. 2 4.88% $7,846
EVERETT FINANCIAL, INC. 2 5.56% $5,178
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 2 6.38% $8,820
GSF Mortgage Corporation 2 4.69% $10,085
Ixonia Bank 2 4.25% $10,136
MID AMERICA MORTGAGE, INC. 2 4.94% $4,501
MILEND, INC. 2 5.06% $10,320
Mortgage Research Center, LLC 2 4.56% $3,718
MORTGAGE SOLUTIONS OF COLORADO, LLC 2 5.50% $10,804
MUTUAL OF OMAHA MORTGAGE, INC. 2 5.69% $10,588
Nations Lending Corporation 2 4.75% $10,136
Prosperity Home Mortgage, LLC 2 5.94% $7,333
ROYAL UNITED MORTGAGE LLC 2 5.19% $10,713
SmartBank 2 4.00% $6,457
SUN WEST MORTGAGE COMPANY, INC. 2 6.06% $5,719
VILLAGE CAPITAL MORTGAGE 2 3.63% $2,634
U.S. Bank 1 5.13% $6,027
HOMEOWNERS FINANCIAL GROUP USA, LLC 1 3.63% $8,239
GUARANTEED RATE, INC. 1 6.25% $7,197
Flagstar Bank, FSB 1 3.50% $7,626
FBC MORTGAGE, LLC 1 4.38% $10,615
VANDERBILT MORTGAGE AND FINANCE, INC. 1 5.13% $11,446
ZILLOW HOME LOANS, LLC 1 5.00% $8,418
EMM LOANS LLC 1 5.13% $9,209
SOUTHPOINT FINANCIAL SERVICES, INC. 1 4.75% $2,328
CORNERSTONE HOME LENDING, INC. 1 5.88% $8,344
SUCCESS MORTGAGE PARTNERS, INC. 1 5.13% $10,139
AMERICAN FINANCING CORPORATION 1 6.75% $7,639
CONTOUR MORTGAGE CORPORATION 1 5.75% $10,658
Colten Mortgage, LLC 1 3.75% $7,684
CARDINAL FINANCIAL 1 4.63% $9,504
Truist 1 5.25% $4,515
Austin Capital Bank SSB 1 4.88% $7,330
UNION HOME MORTGAGE CORP. 1 7.13% $15,162
UNITED MORTGAGE CORP 1 4.63% $9,981
AMERICAN PACIFIC MORTGAGE CORPORATION 1 6.25% $8,077
PANORAMA MORTGAGE GROUP, LLC 1 4.50% $14,039
Peoples Bank 1 5.63% $7,957
PLANET HOME LENDING, LLC 1 3.75% $7,439
INLAND BANK & TRUST 1 5.25% $8,952
HOMESIDE FINANCIAL, LLC 1 6.50% $8,136

The top Tuscaloosa FHA lender as defined by loan originations is First Federal Bank, A FSB, with 136 FHA loans originated. Their average total fees are $8,313, which is $277 higher than the next largest lender, MOVEMENT MORTGAGE, LLC.

The lowest fee Tuscaloosa FHA lenders (with over 10 loans originated) are INTERLINC MORTGAGE SERVICES, LLC ($6,417), BancorpSouth ($7,773), Renasant Bank ($7,793), DHI MORTGAGE COMPANY, LTD. ($7,999) and MOVEMENT MORTGAGE, LLC ($8,036).

The lowest rate Tuscaloosa FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (4.01%), PENNYMAC LOAN SERVICES, LLC (4.16%), Mr. Cooper ( Nationstar Mortgage ) (4.30%), QUICKEN LOANS, LLC (4.41%) and BancorpSouth (4.66%).

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%) $276,399 (12.3%) 0.70 840
2018-02-01 $190,445 (9.7%) $279,004 (13.3%) 0.69 867
2018-03-01 $197,750 (13.1%) $281,184 (10.5%) 0.69 874
2018-04-01 $199,900 (8.1%) $286,192 (9.0%) 0.68 877
2018-05-01 $199,900 (5.4%) $284,496 (7.9%) 0.67 856
2018-06-01 $204,925 (7.9%) $291,475 (8.2%) 0.68 861
2018-07-01 $214,900 (13.2%) $298,124 (10.7%) 0.72 900
2018-08-01 $211,950 (9.7%) $299,819 (7.7%) 0.71 891
2018-09-01 $214,850 (13.1%) $313,706 (11.7%) 0.72 901
2018-10-01 $209,900 (10.8%) $310,932 (12.9%) 0.71 922
2018-11-01 $209,900 (11.8%) $306,985 (10.6%) 0.71 908
2018-12-01 $207,900 (12.4%) $308,852 (13.1%) 0.72 885
2019-01-01 $209,900 (10.5%) $312,591 (13.1%) 0.73 866
2019-02-01 $211,686 (11.2%) $319,251 (14.4%) 0.72 872
2019-03-01 $218,329 (10.4%) $327,072 (16.3%) 0.71 846
2019-04-01 $226,400 (13.3%) $329,891 (15.3%) 0.72 830
2019-05-01 $239,450 (19.8%) $338,174 (18.9%) 0.75 846
2019-06-01 $235,000 (14.7%) $337,201 (15.7%) 0.73 866
2019-07-01 $238,825 (11.1%) $350,200 (17.5%) 0.75 885
2019-08-01 $238,536 (12.5%) $360,433 (20.2%) 0.76 883
2019-09-01 $236,491 (10.1%) $355,378 (13.3%) 0.76 905
2019-10-01 $234,600 (11.8%) $351,992 (13.2%) 0.76 918
2019-11-01 $229,900 (9.5%) $343,437 (11.9%) 0.75 893
2019-12-01 $224,099 (7.8%) $340,779 (10.3%) 0.75 887
2020-01-01 $224,100 (6.8%) $344,784 (10.3%) 0.75 822
2020-02-01 $236,148 (11.6%) $344,244 (7.8%) 0.77 789
2020-03-01 $239,949 (9.9%) $349,416 (6.8%) 0.75 762
2020-04-01 $245,800 (8.6%) $356,190 (8.0%) 0.77 759
2020-05-01 $240,398 (0.4%) $343,242 (1.5%) 0.73 724
2020-06-01 $245,100 (4.3%) $350,526 (4.0%) 0.72 682
2020-07-01 $249,900 (4.6%) $351,893 (0.5%) 0.72 683
2020-08-01 $249,900 (4.8%) $345,634 (-4.1%) 0.72 682
2020-09-01 $249,975 (5.7%) $350,550 (-1.4%) 0.72 660
2020-10-01 $249,900 (6.5%) $345,873 (-1.7%) 0.72 689
2020-11-01 $249,900 (8.7%) $351,902 (2.5%) 0.73 652
2020-12-01 $249,950 (11.5%) $355,035 (4.2%) 0.74 595
2021-01-01 $248,250 (10.8%) $352,857 (2.3%) 0.74 547
2021-02-01 $252,425 (6.9%) $353,428 (2.7%) 0.74 549
2021-03-01 $268,225 (11.8%) $351,178 (0.5%) 0.76 535
2021-04-01 $276,500 (12.5%) $376,846 (5.8%) 0.75 465
2021-05-01 $274,950 (14.4%) $384,254 (12.0%) 0.73 417
2021-06-01 $277,400 (13.2%) $387,927 (10.7%) 0.73 435
2021-07-01 $269,900 (8.0%) $378,035 (7.4%) 0.71 475
2021-08-01 $265,748 (6.3%) $380,340 (10.0%) 0.71 460
2021-09-01 $264,950 (6.0%) $383,384 (9.4%) 0.71 463
2021-10-01 $249,900 (0.0%) $378,808 (9.5%) 0.67 449
2021-11-01 $258,524 (3.5%) $378,062 (7.4%) 0.69 432
2021-12-01 $263,950 (5.6%) $369,505 (4.1%) 0.72 424
2022-01-01 $249,900 (0.7%) $361,679 (2.5%) 0.68 344
2022-02-01 $257,750 (2.1%) $373,805 (5.8%) 0.67 357
2022-03-01 $278,238 (3.7%) $370,899 (5.6%) 0.70 351
2022-04-01 $299,900 (8.5%) $382,512 (1.5%) 0.71 341
2022-05-01 $299,900 (9.1%) $380,043 (-1.1%) 0.69 411
2022-06-01 $304,900 (9.9%) $377,333 (-2.7%) 0.68 500
2022-07-01 $310,000 (14.9%) $384,307 (1.7%) 0.70 597
2022-08-01 $311,098 (17.1%) $386,433 (1.6%) 0.72 577
2022-09-01 $306,900 (15.8%) $383,233 (0.0%) 0.72 573
2022-10-01 $304,900 (22.0%) $387,218 (2.2%) 0.72 522
2022-11-01 $292,974 (13.3%) $378,257 (0.1%) 0.70 535
2022-12-01 $289,900 (9.8%) $379,082 (2.6%) 0.72 514
2023-01-01 $288,148 (15.3%) $382,252 (5.7%) 0.71 524
2023-02-01 $289,375 (12.3%) $391,758 (4.8%) 0.70 536
2023-03-01 $294,450 (5.8%) $395,603 (6.7%) 0.69 512
2023-04-01 $299,000 (-0.3%) $420,976 (10.1%) 0.70 495
2023-05-01 $297,000 (-1.0%) $437,434 (15.1%) 0.67 475
2023-06-01 $297,450 (-2.4%) $446,916 (18.4%) 0.67 486
2023-07-01 $294,900 (-4.9%) $435,704 (13.4%) 0.67 465
2023-08-01 $288,750 (-7.2%) $427,389 (10.6%) 0.66 485
Tuscaloosa's median listing price for 2023-08-01 was $288,750, a difference of $-22,348 (-7.2%) versus the prior year and $-6,150 versus the prior month.

Tuscaloosa's median listing price comes in at 66% of the national average.

Tuscaloosa's average listing price for 2023-08-01 was $427,389, a difference of $40,956 (10.6%) versus the prior year and $-8,315 versus the prior month.

For the 2023-08-01 period, Tuscaloosa had 485 MLS listings, a difference of 20 listings (4%) versus the prior month and -92 listings (-16%) 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 1,769 sqft
2018-02-01 88 days 1,771 sqft
2018-03-01 61 days 1,754 sqft
2018-04-01 60 days 1,768 sqft
2018-05-01 63 days 1,764 sqft
2018-06-01 67 days 1,762 sqft
2018-07-01 68 days 1,811 sqft
2018-08-01 68 days 1,790 sqft
2018-09-01 68 days 1,774 sqft
2018-10-01 72 days 1,754 sqft
2018-11-01 73 days 1,742 sqft
2018-12-01 90 days 1,728 sqft
2019-01-01 95 days 1,724 sqft
2019-02-01 85 days 1,719 sqft
2019-03-01 74 days 1,742 sqft
2019-04-01 64 days 1,776 sqft
2019-05-01 64 days 1,822 sqft
2019-06-01 61 days 1,800 sqft
2019-07-01 65 days 1,852 sqft
2019-08-01 66 days 1,841 sqft
2019-09-01 63 days 1,819 sqft
2019-10-01 64 days 1,804 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 70 days 1,786 sqft
2020-04-01 73 days 1,801 sqft
2020-05-01 75 days 1,774 sqft
2020-06-01 74 days 1,799 sqft
2020-07-01 63 days 1,798 sqft
2020-08-01 59 days 1,763 sqft
2020-09-01 75 days 1,798 sqft
2020-10-01 81 days 1,750 sqft
2020-11-01 81 days 1,747 sqft
2020-12-01 82 days 1,720 sqft
2021-01-01 71 days 1,632 sqft
2021-02-01 47 days 1,596 sqft
2021-03-01 47 days 1,611 sqft
2021-04-01 58 days 1,599 sqft
2021-05-01 58 days 1,642 sqft
2021-06-01 49 days 1,643 sqft
2021-07-01 47 days 1,744 sqft
2021-08-01 45 days 1,793 sqft
2021-09-01 49 days 1,799 sqft
2021-10-01 57 days 1,800 sqft
2021-11-01 60 days 1,822 sqft
2021-12-01 58 days 1,778 sqft
2022-01-01 65 days 1,708 sqft
2022-02-01 54 days 1,727 sqft
2022-03-01 40 days 1,775 sqft
2022-04-01 41 days 1,882 sqft
2022-05-01 37 days 1,925 sqft
2022-06-01 36 days 1,993 sqft
2022-07-01 39 days 2,040 sqft
2022-08-01 52 days 2,056 sqft
2022-09-01 61 days 2,052 sqft
2022-10-01 71 days 2,053 sqft
2022-11-01 67 days 1,988 sqft
2022-12-01 68 days 1,960 sqft
2023-01-01 70 days 1,870 sqft
2023-02-01 60 days 1,830 sqft
2023-03-01 56 days 1,886 sqft
2023-04-01 54 days 1,914 sqft
2023-05-01 50 days 1,890 sqft
2023-06-01 47 days 1,869 sqft
2023-07-01 49 days 1,870 sqft
2023-08-01 51 days 1,861 sqft
Tuscaloosa's median listing age (time on market) for 2023-08-01 was 51 days. This is -2% shorter than the same period one year ago.

Tuscaloosa's median square footage for active listings during the 2023-08-01 period was 1,861 sqft. One year prior, the average listing was 2,056 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).