Tuscaloosa FHA Loan Rates, Closing Costs & Stats

TUSCALOOSA, AL

  • JUMP TO:
  • Trends
  • Rates vs Fees
  • Top Lenders
  • Markets
  • Loan Limits
  • Market Conditions & Pricing
  • Time on Market/Property Size

    • 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).