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 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 6.46% for the week of 2025-04-04, compared to the national average (all FHA variants) of 6.259% for the same period.

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

The average rate for the prior week (2025-03-28) was 6.26% and one month ago for the week of 2025-02-28, the average rate was 6.54%.

The average rate one year ago was 6.56%.

For refis of the same type during the week of 2025-04-04, the average rate was 6.44%.

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

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 (13.2%) 0.70 869
2018-03-01 $198,500 (13.5%) $281,227 (10.5%) 0.70 875
2018-04-01 $199,900 (8.1%) $286,192 (8.9%) 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 (9.6%) $299,680 (7.7%) 0.71 891
2018-09-01 $214,850 (13.1%) $313,706 (11.6%) 0.72 901
2018-10-01 $209,900 (10.7%) $310,920 (12.8%) 0.71 923
2018-11-01 $209,900 (11.3%) $306,834 (10.6%) 0.71 910
2018-12-01 $207,588 (11.8%) $308,696 (13.0%) 0.72 887
2019-01-01 $209,900 (10.5%) $312,531 (13.1%) 0.73 867
2019-02-01 $211,686 (10.5%) $319,251 (14.4%) 0.72 872
2019-03-01 $218,329 (10.0%) $327,044 (16.3%) 0.71 846
2019-04-01 $226,400 (13.3%) $329,768 (15.2%) 0.72 830
2019-05-01 $239,425 (19.8%) $338,094 (18.8%) 0.75 846
2019-06-01 $234,950 (14.7%) $337,047 (15.6%) 0.73 867
2019-07-01 $238,700 (11.1%) $349,922 (17.4%) 0.75 886
2019-08-01 $238,536 (12.5%) $360,299 (20.2%) 0.76 884
2019-09-01 $236,491 (10.1%) $355,320 (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 (8.0%) $340,779 (10.4%) 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 $239,873 (9.9%) $349,168 (6.8%) 0.75 763
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 (4.7%) $351,893 (0.6%) 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 (-1.3%) 0.72 660
2020-10-01 $249,900 (6.5%) $345,873 (-1.7%) 0.72 689
2020-11-01 $249,950 (8.7%) $351,293 (2.3%) 0.73 659
2020-12-01 $250,300 (11.7%) $354,534 (4.0%) 0.74 598
2021-01-01 $249,000 (11.1%) $352,396 (2.2%) 0.74 549
2021-02-01 $252,950 (7.1%) $352,698 (2.5%) 0.74 554
2021-03-01 $267,100 (11.4%) $350,485 (0.4%) 0.76 540
2021-04-01 $276,500 (12.5%) $376,355 (5.7%) 0.75 468
2021-05-01 $274,900 (14.4%) $384,254 (12.0%) 0.73 418
2021-06-01 $277,400 (13.2%) $387,927 (10.7%) 0.73 435
2021-07-01 $269,990 (8.0%) $378,035 (7.4%) 0.71 476
2021-08-01 $265,748 (6.3%) $380,340 (10.0%) 0.71 461
2021-09-01 $264,950 (6.0%) $383,384 (9.4%) 0.71 463
2021-10-01 $249,900 (0.0%) $378,466 (9.4%) 0.67 449
2021-11-01 $256,524 (2.6%) $377,710 (7.5%) 0.69 433
2021-12-01 $263,799 (5.4%) $369,406 (4.2%) 0.71 424
2022-01-01 $249,900 (0.4%) $361,553 (2.6%) 0.68 344
2022-02-01 $257,600 (1.8%) $373,977 (6.0%) 0.67 356
2022-03-01 $276,975 (3.7%) $371,018 (5.9%) 0.69 351
2022-04-01 $299,900 (8.5%) $382,413 (1.6%) 0.71 343
2022-05-01 $299,950 (9.1%) $379,654 (-1.2%) 0.69 416
2022-06-01 $309,000 (11.4%) $377,356 (-2.7%) 0.69 504
2022-07-01 $310,000 (14.8%) $383,909 (1.6%) 0.70 597
2022-08-01 $309,673 (16.5%) $385,926 (1.5%) 0.72 577
2022-09-01 $305,000 (15.1%) $382,710 (-0.2%) 0.71 573
2022-10-01 $303,950 (21.6%) $386,580 (2.1%) 0.72 522
2022-11-01 $292,724 (14.1%) $377,780 (0.0%) 0.70 533
2022-12-01 $290,500 (10.1%) $378,722 (2.5%) 0.72 511
2023-01-01 $292,400 (17.0%) $384,837 (6.4%) 0.72 511
2023-02-01 $293,900 (14.1%) $394,509 (5.5%) 0.71 523
2023-03-01 $296,950 (7.2%) $396,274 (6.8%) 0.70 508
2023-04-01 $299,900 (0.0%) $421,980 (10.4%) 0.70 494
2023-05-01 $297,000 (-1.0%) $437,118 (15.1%) 0.67 474
2023-06-01 $298,450 (-3.4%) $446,481 (18.3%) 0.67 486
2023-07-01 $295,000 (-4.8%) $435,256 (13.4%) 0.67 466
2023-08-01 $292,975 (-5.4%) $427,041 (10.7%) 0.67 488
2023-09-01 $284,950 (-6.6%) $412,848 (7.9%) 0.66 524
2023-10-01 $295,000 (-2.9%) $414,096 (7.1%) 0.69 606
2023-11-01 $291,925 (-0.3%) $410,482 (8.7%) 0.70 643
2023-12-01 $293,000 (0.9%) $413,521 (9.2%) 0.71 614
2024-01-01 $298,975 (2.3%) $429,180 (11.5%) 0.73 558
2024-02-01 $299,900 (2.0%) $455,737 (15.5%) 0.72 574
2024-03-01 $299,900 (1.0%) $459,764 (16.0%) 0.71 605
2024-04-01 $302,950 (1.0%) $463,138 (9.8%) 0.70 598
2024-05-01 $307,900 (3.7%) $455,440 (4.2%) 0.70 629
2024-06-01 $305,900 (2.5%) $451,493 (1.1%) 0.70 628
2024-07-01 $309,900 (5.1%) $452,732 (4.0%) 0.71 641
2024-08-01 $309,900 (5.8%) $435,018 (1.9%) 0.72 674
2024-09-01 $309,925 (8.8%) $435,240 (5.4%) 0.73 656
2024-10-01 $314,900 (6.8%) $437,297 (5.6%) 0.74 679
2024-11-01 $299,900 (2.7%) $431,975 (5.2%) 0.72 680
2024-12-01 $299,450 (2.2%) $430,930 (4.2%) 0.74 653
2025-01-01 $299,900 (0.3%) $433,609 (1.0%) 0.75 635
2025-02-01 $299,950 (0.0%) $449,240 (-1.4%) 0.73 653
2025-03-01 $315,000 (5.0%) $443,167 (-3.6%) 0.00 664
Tuscaloosa's median listing price for 2025-03-01 was $315,000, a difference of $15,100 (5.0%) versus the prior year and $15,050 versus the prior month.

Tuscaloosa's median listing price comes in at 0% of the national average.

Tuscaloosa's average listing price for 2025-03-01 was $443,167, a difference of $-16,597 (-3.6%) versus the prior year and $-6,073 versus the prior month.

For the 2025-03-01 period, Tuscaloosa had 664 MLS listings, a difference of 11 listings (2%) versus the prior month and 59 listings (10%) 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 1,762 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 1,758 sqft
2018-11-01 73 days 1,742 sqft
2018-12-01 90 days 1,728 sqft
2019-01-01 95 days 1,726 sqft
2019-02-01 85 days 1,719 sqft
2019-03-01 74 days 1,742 sqft
2019-04-01 64 days 1,777 sqft
2019-05-01 64 days 1,822 sqft
2019-06-01 60 days 1,800 sqft
2019-07-01 65 days 1,850 sqft
2019-08-01 66 days 1,840 sqft
2019-09-01 64 days 1,818 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 70 days 1,785 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 80 days 1,755 sqft
2020-12-01 81 days 1,726 sqft
2021-01-01 71 days 1,639 sqft
2021-02-01 48 days 1,600 sqft
2021-03-01 47 days 1,611 sqft
2021-04-01 58 days 1,604 sqft
2021-05-01 58 days 1,643 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 1,820 sqft
2021-12-01 58 days 1,777 sqft
2022-01-01 66 days 1,708 sqft
2022-02-01 54 days 1,720 sqft
2022-03-01 40 days 1,783 sqft
2022-04-01 39 days 1,904 sqft
2022-05-01 37 days 1,937 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 2,047 sqft
2022-10-01 71 days 2,050 sqft
2022-11-01 67 days 1,986 sqft
2022-12-01 68 days 1,959 sqft
2023-01-01 73 days 1,890 sqft
2023-02-01 61 days 1,847 sqft
2023-03-01 56 days 1,885 sqft
2023-04-01 53 days 1,914 sqft
2023-05-01 51 days 1,889 sqft
2023-06-01 47 days 1,869 sqft
2023-07-01 48 days 1,870 sqft
2023-08-01 52 days 1,861 sqft
2023-09-01 50 days 1,848 sqft
2023-10-01 50 days 1,834 sqft
2023-11-01 51 days 1,821 sqft
2023-12-01 60 days 1,830 sqft
2024-01-01 80 days 1,831 sqft
2024-02-01 67 days 1,808 sqft
2024-03-01 52 days 1,801 sqft
2024-04-01 53 days 1,817 sqft
2024-05-01 51 days 1,835 sqft
2024-06-01 57 days 1,845 sqft
2024-07-01 58 days 1,886 sqft
2024-08-01 57 days 1,859 sqft
2024-09-01 62 days 1,866 sqft
2024-10-01 65 days 1,871 sqft
2024-11-01 63 days 1,847 sqft
2024-12-01 69 days 1,800 sqft
2025-01-01 69 days 1,792 sqft
2025-02-01 58 days 1,771 sqft
2025-03-01 0 days 1,776 sqft
Tuscaloosa's median listing age (time on market) for 2025-03-01 was 0 days. This is -100% shorter than the same period one year ago.

Tuscaloosa's median square footage for active listings during the 2025-03-01 period was 1,776 sqft. One year prior, the average listing was 1,801 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).