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 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 6.28% for the week of 2025-02-14, compared to the national average (all FHA variants) of 6.515% for the same period.

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

    The average rate for the prior week (2025-02-07) was 6.19% and one month ago for the week of 2025-01-10, the average rate was 6.46%.

    The average rate one year ago was 6.38%.

    For refis of the same type during the week of 2025-02-14, the average rate was 6.81%.

    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

    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%) 0.71 887
    2019-01-01 $209,900 (10.5%) $312,531 (13.1%) 0.72 867
    2019-02-01 $211,686 (10.5%) $319,251 (14.4%) 0.71 872
    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%) 0.71 830
    2019-05-01 $239,425 (19.8%) $338,094 (18.8%) 0.74 846
    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%) 0.69 449
    2021-11-01 $256,524 (2.6%) $377,710 (7.5%) 0.70 433
    2021-12-01 $263,799 (5.4%) $369,406 (4.2%) 0.72 424
    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%) 0.71 522
    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%) 0.66 488
    2023-09-01 $284,950 (-6.6%) $412,848 (7.9%) 0.65 524
    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%) 0.69 643
    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%) 0.69 628
    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%) 0.00 635
    Tuscaloosa's median listing price for 2025-01-01 was $299,900, a difference of $925 (0.3%) versus the prior year and $450 versus the prior month.

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

    Tuscaloosa's average listing price for 2025-01-01 was $433,609, a difference of $4,429 (1.0%) versus the prior year and $2,679 versus the prior month.

    For the 2025-01-01 period, Tuscaloosa had 635 MLS listings, a difference of -18 listings (-3%) versus the prior month and 77 listings (14%) 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 89 days 1,728 sqft
    2019-01-01 94 days 1,726 sqft
    2019-02-01 86 days 1,719 sqft
    2019-03-01 76 days 1,742 sqft
    2019-04-01 64 days 1,777 sqft
    2019-05-01 64 days 1,822 sqft
    2019-06-01 61 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 69 days 1,785 sqft
    2020-04-01 74 days 1,801 sqft
    2020-05-01 77 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 74 days 1,798 sqft
    2020-10-01 81 days 1,750 sqft
    2020-11-01 79 days 1,755 sqft
    2020-12-01 82 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 57 days 1,604 sqft
    2021-05-01 58 days 1,643 sqft
    2021-06-01 49 days 1,643 sqft
    2021-07-01 48 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 61 days 1,820 sqft
    2021-12-01 59 days 1,777 sqft
    2022-01-01 65 days 1,708 sqft
    2022-02-01 53 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 59 days 1,847 sqft
    2023-03-01 55 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 49 days 1,870 sqft
    2023-08-01 51 days 1,861 sqft
    2023-09-01 50 days 1,848 sqft
    2023-10-01 50 days 1,834 sqft
    2023-11-01 52 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 52 days 1,817 sqft
    2024-05-01 51 days 1,835 sqft
    2024-06-01 54 days 1,845 sqft
    2024-07-01 57 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 0 days 1,792 sqft
    Tuscaloosa's median listing age (time on market) for 2025-01-01 was 0 days. This is -100% shorter than the same period one year ago.

    Tuscaloosa's median square footage for active listings during the 2025-01-01 period was 1,792 sqft. One year prior, the average listing was 1,831 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).