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 95 lenders originated 1,385 FHA loans during 2021. The total origination value was $281,335,000, with an average FHA loan value of $203,130.

Tuscaloosa FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Tuscaloosa averaged 6.1% for the week of 2023-01-27, compared to the national average (all FHA variants) of 6.186% for the same period.

Tuscaloosa's average FHA mortgage closing costs are $5,824.

The average rate for the prior week (2023-01-20) was 6.28% and one month ago for the week of 2022-12-23, the average rate was 6.47%.

The average rate one year ago was 3.56%.

For refis of the same type during the week of 2023-01-27, the average rate was 5.65%.

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 2021 Avg. 30yFix Rate 2021 Avg. Closing Costs
First Federal Bank, A FSB 247 2.85% $5,515
SOUTHWEST FUNDING, LP 126 3.43% $8,900
QUICKEN LOANS, LLC 93 2.76% $5,809
INTERLINC MORTGAGE SERVICES, LLC 80 3.20% $4,537
MOVEMENT MORTGAGE, LLC 49 3.33% $5,633
TJC Mortgage, Inc. 46 3.12% $7,222
Trustmark National Bank 43 2.85% $6,901
FirstBank 39 2.84% $8,399
Synovus Bank 36 3.05% $7,669
Renasant Bank 34 3.06% $7,445
PENNYMAC LOAN SERVICES, LLC 33 3.03% $4,553
Regions Bank 31 2.73% $6,165
FREEDOM MORTGAGE CORPORATION 27 3.04% $4,266
DHI MORTGAGE COMPANY, LTD. 24 2.90% $7,076
Mr. Cooper ( Nationstar Mortgage ) 20 3.24% $3,390
VILLAGE CAPITAL MORTGAGE 18 3.11% $2,238
LEADERONE FINANCIAL CORPORATION 17 3.33% $7,807
CALIBER HOME LOANS, INC. 17 2.58% $4,737
LAKEVIEW LOAN SERVICING, LLC 15 3.00% $4,179
Northpointe Bank 15 3.38% $6,993
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 14 3.23% $6,547
BancorpSouth Bank 13 2.77% $7,001
LOANDEPOT.COM, LLC 13 3.44% $7,518
HOMEBRIDGE FINANCIAL SERVICES, INC. 12 2.89% $6,398
Carrington Mortgage Services, LLC 10 3.21% $7,450
Hometown Lenders, Inc. 10 3.28% $7,836
Prosperity Home Mortgage, LLC 9 3.28% $6,255
HOME POINT FINANCIAL CORPORATION 9 2.50% $7,955
First Guaranty Mortgage Corporation 8 2.67% $5,719
Assurance Financial Group, L.L.C. 8 3.33% $7,237
GMFS LLC 7 2.77% $8,294
EVANSVILLE TEACHERS 7 3.09% $6,965
UNITED WHOLESALE MORTGAGE, LLC 6 2.95% $7,948
Consumer First Mortgage, Inc. 6 2.71% $7,446
AmeriHome Mortgage Company, LLC 6 2.81% $4,406
PLAZA HOME MORTGAGE, INC. 5 3.13% $8,977
CROSSCOUNTRY MORTGAGE, LLC 5 3.63% $7,820
GSF Mortgage Corporation 5 3.58% $9,791
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 5 3.03% $8,419
CIS Financial Services, Inc. 4 3.88% $6,449
GUILD MORTGAGE COMPANY 4 2.63% $8,070
BROKER SOLUTIONS, INC. 4 3.00% $8,031
SouthPoint Bank 4 3.09% $6,005
NEWREZ LLC 4 2.88% $3,783
PLANET HOME LENDING, LLC 4 2.78% $4,464
Cadence Bank, N.A. 3 2.79% $7,516
CMG MORTGAGE, INC. 3 2.92% $8,699
DRAPER AND KRAMER MORTGAGE CORP. 3 2.75% $7,585
ISERVE RESIDENTIAL LENDING, LLC 3 2.75% $9,640
ZILLOW HOME LOANS, LLC 2 2.88% $4,951
AMERICAN FINANCING CORPORATION 2 2.50% $6,868
AMERISAVE MORTGAGE CORPORATION 2 3.00% $8,322
Bank of England 2 3.06% $13,226
BAYSHORE MORTGAGE FUNDING, LLC 2 3.06% $4,822
EVERETT FINANCIAL, INC. 2 3.94% $4,919
Flagstar Bank, FSB 2 2.99% $5,371
GUARANTEED RATE, INC. 2 3.13% $7,050
MUTUAL OF OMAHA MORTGAGE, INC. 2 2.56% $6,868
Nations Lending Corporation 2 3.25% $3,961
Paramount Residential Mortgage Group, Inc. 2 3.12% $6,721
Peoples Bank 2 3.13% $7,867
RELIANCE FIRST CAPITAL, LLC 2 3.00% $7,643
SmartBank 2 2.69% $5,980
VANDERBILT MORTGAGE AND FINANCE, INC. 2 3.63% $6,554
GoPrime Mortgage, Inc. 1 3.38% $6,513
OCEANSIDE MORTGAGE COMPANY 1 3.50% $2,710
U.S. Bank 1 2.50% $5,129
First Option Mortgage, LLC 1 3.50% $9,849
AMERICAN FINANCIAL NETWORK, INC. 1 2.63% $6,878
PHH Mortgage Corporation 1 2.88% $10,758
First Horizon Bank 1 3.50% $6,458
FIRST COMMUNITY MORTGAGE, INC. 1 2.88% $8,249
PRIMARY RESIDENTIAL MORTGAGE, INC. 1 4.75% $7,379
PRIMELENDING, A PLAINSCAPITAL COMPANY 1 2.75% $7,676
FBC MORTGAGE, LLC 1 3.13% $5,801
Equity Prime Mortgage LLC 1 2.75% $5,302
ENVOY MORTGAGE, LTD 1 2.88% $7,029
AMERIFIRST FINANCIAL CORPORATION 1 4.75% $7,003
EMM LOANS LLC 1 3.50% $8,839
RESIDENTIAL BANCORP. 1 2.99% $8,723
ServisFirst Bank 1 2.75% $6,541
Wells Fargo Bank 1 3.13% $3,215
EMBRACE HOME LOANS, INC. 1 2.75% $8,509
DAS Acquisition Company, LLC 1 4.25% $12,328
SUCCESS MORTGAGE PARTNERS, INC. 1 3.00% $6,339
Citizens Bank 1 3.00% $8,368
T2 FINANCIAL LLC 1 3.63% $7,519
CHURCHILL MORTGAGE CORPORATION 1 2.75% $9,633
LENOX FINANCIAL MORTGAGE CORPORATION 1 3.25% $6,483
JPMorgan Chase Bank 1 2.75% $8,796
Ixonia Bank 1 3.63% $8,074
HUNT MORTGAGE CORPORATION 1 3.25% $8,896
CERTAINTY HOME LOANS, LLC 1 2.99% $8,335
Austin Capital Bank SSB 1 3.00% $7,111
HOMESIDE FINANCIAL, LLC 1 3.25% $5,608

The top Tuscaloosa FHA lender as defined by loan originations is First Federal Bank, A FSB, with 247 FHA loans originated. Their average total fees are $5,515, which is $3,384 lower than the next largest lender, SOUTHWEST FUNDING, LP.

The lowest fee Tuscaloosa FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL MORTGAGE ($2,238), Mr. Cooper ( Nationstar Mortgage ) ($3,390), LAKEVIEW LOAN SERVICING, LLC ($4,179), FREEDOM MORTGAGE CORPORATION ($4,266) and INTERLINC MORTGAGE SERVICES, LLC ($4,537).

The lowest rate Tuscaloosa FHA lenders (with over 10 loans originated) are CALIBER HOME LOANS, INC. (2.58%), Regions Bank (2.73%), QUICKEN LOANS, LLC (2.76%), BancorpSouth Bank (2.77%) and FirstBank (2.84%).

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

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%) 0.72 866
2019-02-01 $211,686 (11.2%) $319,251 (14.4%) 0.71 872
2019-03-01 $218,329 (10.4%) $327,268 (16.4%) 0.71 846
2019-04-01 $226,400 (13.3%) $330,247 (15.4%) 0.72 830
2019-05-01 $239,450 (19.8%) $338,192 (18.9%) 0.75 846
2019-06-01 $235,000 (14.7%) $337,228 (15.7%) 0.73 866
2019-07-01 $238,825 (11.1%) $350,226 (17.5%) 0.75 885
2019-08-01 $238,536 (12.5%) $360,743 (20.3%) 0.76 882
2019-09-01 $236,491 (10.1%) $355,679 (13.4%) 0.76 904
2019-10-01 $234,750 (11.8%) $352,276 (13.3%) 0.76 918
2019-11-01 $229,900 (9.5%) $343,703 (12.0%) 0.75 893
2019-12-01 $224,349 (7.9%) $341,019 (10.4%) 0.75 887
2020-01-01 $224,900 (7.2%) $344,878 (10.3%) 0.75 823
2020-02-01 $236,395 (11.7%) $344,192 (7.8%) 0.77 790
2020-03-01 $240,103 (10.0%) $349,513 (6.8%) 0.75 763
2020-04-01 $245,950 (8.6%) $356,122 (7.8%) 0.77 760
2020-05-01 $240,795 (0.6%) $343,186 (1.5%) 0.73 725
2020-06-01 $245,200 (4.3%) $350,459 (3.9%) 0.72 683
2020-07-01 $249,900 (4.6%) $351,825 (0.5%) 0.72 684
2020-08-01 $249,900 (4.8%) $345,578 (-4.2%) 0.72 683
2020-09-01 $249,950 (5.7%) $350,808 (-1.4%) 0.72 659
2020-10-01 $249,900 (6.5%) $346,130 (-1.7%) 0.72 687
2020-11-01 $249,900 (8.7%) $352,567 (2.6%) 0.73 647
2020-12-01 $249,950 (11.4%) $355,524 (4.3%) 0.74 593
2021-01-01 $247,500 (10.1%) $353,087 (2.4%) 0.74 546
2021-02-01 $252,450 (6.8%) $353,548 (2.7%) 0.73 550
2021-03-01 $268,274 (11.7%) $351,077 (0.5%) 0.76 536
2021-04-01 $276,500 (12.4%) $376,703 (5.8%) 0.75 466
2021-05-01 $274,950 (14.2%) $384,100 (11.9%) 0.73 418
2021-06-01 $276,950 (13.0%) $388,057 (10.7%) 0.73 435
2021-07-01 $269,900 (8.0%) $378,081 (7.5%) 0.71 473
2021-08-01 $264,950 (6.0%) $380,378 (10.1%) 0.71 459
2021-09-01 $264,950 (6.0%) $383,413 (9.3%) 0.71 463
2021-10-01 $249,900 (0.0%) $378,667 (9.4%) 0.67 450
2021-11-01 $256,524 (2.7%) $377,850 (7.2%) 0.69 432
2021-12-01 $261,574 (4.7%) $369,304 (3.9%) 0.71 424
2022-01-01 $249,900 (1.0%) $361,385 (2.4%) 0.68 344
2022-02-01 $259,523 (2.8%) $373,630 (5.7%) 0.68 358
2022-03-01 $278,238 (3.7%) $370,590 (5.6%) 0.70 351
2022-04-01 $299,900 (8.5%) $382,217 (1.5%) 0.72 341
2022-05-01 $299,900 (9.1%) $379,919 (-1.1%) 0.69 411
2022-06-01 $304,521 (10.0%) $377,332 (-2.8%) 0.68 499
2022-07-01 $309,825 (14.8%) $384,320 (1.7%) 0.70 596
2022-08-01 $307,923 (16.2%) $387,066 (1.8%) 0.71 570
2022-09-01 $303,235 (14.5%) $383,765 (0.1%) 0.71 565
2022-10-01 $304,900 (22.0%) $387,880 (2.4%) 0.72 514
2022-11-01 $292,524 (14.0%) $379,251 (0.4%) 0.70 527
2022-12-01 $289,000 (10.5%) $380,242 (3.0%) 0.72 505
Tuscaloosa's median listing price for 2022-12-01 was $289,000, a difference of $27,426 (10.5%) versus the prior year and $-3,524 versus the prior month.

Tuscaloosa's median listing price comes in at 72% of the national average.

Tuscaloosa's average listing price for 2022-12-01 was $380,242, a difference of $10,938 (3.0%) versus the prior year and $991 versus the prior month.

For the 2022-12-01 period, Tuscaloosa had 505 MLS listings, a difference of -22 listings (-4%) versus the prior month and 81 listings (19%) 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
2018-01-01 100 days 1,769 sqft
2018-02-01 96 days 1,773 sqft
2018-03-01 70 days 1,761 sqft
2018-04-01 66 days 1,770 sqft
2018-05-01 68 days 1,767 sqft
2018-06-01 73 days 1,762 sqft
2018-07-01 78 days 1,812 sqft
2018-08-01 76 days 1,787 sqft
2018-09-01 75 days 1,774 sqft
2018-10-01 80 days 1,752 sqft
2018-11-01 83 days 1,741 sqft
2018-12-01 96 days 1,728 sqft
2019-01-01 105 days 1,724 sqft
2019-02-01 100 days 1,719 sqft
2019-03-01 87 days 1,743 sqft
2019-04-01 72 days 1,778 sqft
2019-05-01 69 days 1,822 sqft
2019-06-01 67 days 1,800 sqft
2019-07-01 72 days 1,852 sqft
2019-08-01 72 days 1,844 sqft
2019-09-01 71 days 1,820 sqft
2019-10-01 71 days 1,805 sqft
2019-11-01 81 days 1,804 sqft
2019-12-01 99 days 1,801 sqft
2020-01-01 101 days 1,782 sqft
2020-02-01 93 days 1,774 sqft
2020-03-01 74 days 1,787 sqft
2020-04-01 79 days 1,801 sqft
2020-05-01 81 days 1,774 sqft
2020-06-01 81 days 1,800 sqft
2020-07-01 70 days 1,799 sqft
2020-08-01 64 days 1,754 sqft
2020-09-01 80 days 1,796 sqft
2020-10-01 87 days 1,748 sqft
2020-11-01 89 days 1,739 sqft
2020-12-01 94 days 1,714 sqft
2021-01-01 81 days 1,629 sqft
2021-02-01 55 days 1,596 sqft
2021-03-01 53 days 1,611 sqft
2021-04-01 63 days 1,601 sqft
2021-05-01 64 days 1,643 sqft
2021-06-01 53 days 1,651 sqft
2021-07-01 50 days 1,743 sqft
2021-08-01 50 days 1,795 sqft
2021-09-01 53 days 1,801 sqft
2021-10-01 59 days 1,799 sqft
2021-11-01 66 days 1,818 sqft
2021-12-01 63 days 1,777 sqft
2022-01-01 71 days 1,705 sqft
2022-02-01 56 days 1,728 sqft
2022-03-01 43 days 1,775 sqft
2022-04-01 43 days 1,881 sqft
2022-05-01 38 days 1,918 sqft
2022-06-01 37 days 1,975 sqft
2022-07-01 40 days 2,037 sqft
2022-08-01 53 days 2,057 sqft
2022-09-01 62 days 2,053 sqft
2022-10-01 71 days 2,056 sqft
2022-11-01 67 days 1,994 sqft
2022-12-01 71 days 1,961 sqft
Tuscaloosa's median listing age (time on market) for 2022-12-01 was 71 days. This is 14% longer than the same period one year ago.

Tuscaloosa's median square footage for active listings during the 2022-12-01 period was 1,961 sqft. One year prior, the average listing was 1,777 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).