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 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 6.56% for the week of 2024-07-19, compared to the national average (all FHA variants) of 6.59% for the same period.

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

The average rate for the prior week (2024-07-12) was 6.41% and one month ago for the week of 2024-06-14, the average rate was 6.66%.

The average rate one year ago was 6.45%.

For refis of the same type during the week of 2024-07-19, the average rate was 6.58%.

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

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).