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 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).