Tuscaloosa VA Loan Rates, Closing Costs & Stats

TUSCALOOSA, AL

A VA loan is a mortgage loan that’s backed by the Department of Veterans Affairs (VA) for those who have served or are presently serving in the U.S. military. The VA does not directly lend, it guarantees the loans made by private lenders to veterans, active military personnel, and qualifying military spouses.

The most obvious benefit of VA loans is that no downpayment is necessary to purchase a home. They will also typically have significantly lower fees-- meaning that if you're eligible to receive a VA loan, it will likely be the most favorable option. VA loans come in 3 varities: purchase, refinance and cash out refis.

For additional benefits of VA loans, click here.

Tuscaloosa's 60 lenders originated 255 VA loans during 2023. The total origination value was $71,635,000, with an average VA loan value of $280,922.

Tuscaloosa VA Loans, 30 Year Fixed Rates

30 Year VA mortgages in Tuscaloosa averaged 5.92% for the week of 2024-10-25, compared to the national average (all VA variants) of 6.14% for the same period.

Tuscaloosa's average VA mortgage closing costs are $5,242.

The average rate for the prior week (2024-10-18) was 6.13% and one month ago for the week of 2024-09-20, the average rate was 5.33%.

The average rate one year ago was 7.15%.

For refis of the same type during the week of 2024-10-25, the average rate was 6.25%.

Click on whitespace and scroll within the chart to zoom in/out. Larger bubbles equate with more originations.

Tuscaloosa VA Loan Lenders by Rates & Fees

The below table looks at the average fees/closing costs and rates for VA 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 32 6.18% $11,248
Mortgage Research Center, LLC 29 6.86% $5,233
MOVEMENT MORTGAGE, LLC 16 6.52% $7,297
QUICKEN LOANS, LLC 12 5.95% $12,055
DHI MORTGAGE COMPANY, LTD. 11 5.31% $4,991
MORTGAGE SOLUTIONS OF COLORADO, LLC 10 7.86% $1,529
UNITED WHOLESALE MORTGAGE, LLC 10 6.57% $9,293
NAVY FEDERAL CREDIT UNION 9 5.94% $5,775
PENNYMAC LOAN SERVICES, LLC 8 5.00% $5,549
Regions Bank 8 6.08% $6,877
FREEDOM MORTGAGE CORPORATION 8 6.47% $13,607
Wells Fargo Bank 6 5.81% $4,681
United Community Bank 6 6.25% $8,303
FirstBank 5 6.30% $3,990
NEW DAY FINANCIAL, LLC 5 7.40% $6,657
Renasant Bank 5 5.57% $7,176
U.S. Bank 4 6.66% $10,796
GUILD MORTGAGE COMPANY 4 6.50% $6,754
Barrington Bank & Trust Company, N.A. 4 5.97% $11,840
TJC Mortgage, Inc. 3 6.54% $8,482
Assurance Financial Group, L.L.C. 3 6.42% $8,386
AMERISAVE MORTGAGE CORPORATION 2 6.31% $12,996
ARK-LA-TEX FINANCIAL SERVICES, LLC. 2 7.13% $3,730
LOANDEPOT.COM, LLC 2 6.00% $10,236
CROSSCOUNTRY MORTGAGE, LLC 2 7.25% $6,324
Mr. Cooper ( Nationstar Mortgage ) 2 6.13% $11,816
RELIANCE FIRST CAPITAL, LLC 2 7.50% $9,738
UNION HOME MORTGAGE CORP. 2 6.13% $5,656
USAA Federal Savings Bank 2 5.81% $6,260
VILLAGE CAPITAL MORTGAGE 2 6.25% $2,799
PLAZA HOME MORTGAGE, INC. 1 6.25% $11,007
BROKER SOLUTIONS, INC. 1 7.63% $16,878
Citizens Bank 1 6.25% $4,661
EVANSVILLE TEACHERS 1 6.00% $18,487
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 1 7.25% $7,666
GUARANTEED RATE, INC. 1 5.75% $5,770
HOMEBRIDGE FINANCIAL SERVICES, INC. 1 6.63% $1,815
HOMESIDE FINANCIAL, LLC 1 6.13% $9,432
JPMorgan Chase Bank 1 6.75% $23,218
Magnolia Bank 1 6.25% $12,081
MID AMERICA MORTGAGE, INC. 1 7.00% $4,267
Mid-Continent Funding, Inc. 1 6.75% $8,391
MORTGAGE ACCESS CORP. 1 5.75% $2,796
NBKC BANK 1 6.13% $2,740
NEWREZ LLC 1 6.25% $3,453
North American Savings Bank, F.S.B. 1 6.75% $13,523
Northpointe Bank 1 5.63% $3,134
PENTAGON FEDERAL CREDIT UNION 1 5.88% $5,728
PLANET HOME LENDING, LLC 1 5.50% $3,928
1ST SIGNATURE LENDING, LLC 1 7.13% $7,638
PNC Bank 1 6.88% $12,875
Princeton Mortgage Corporation 1 7.50% $11,560
Prosperity Home Mortgage, LLC 1 6.50% $11,755
SouthPoint Bank 1 5.75% $5,483
South State Bank 1 5.88% $11,626
STOCKTON MORTGAGE CORPORATION 1 6.75% $5,414
Synovus Bank 1 6.88% $2,021
The Federal Savings Bank 1 6.75% $12,720
Towne Bank 1 6.63% $5,451
Waterstone Mortgage Corporation 1 6.13% $12,947

The top Tuscaloosa VA lender as defined by loan originations is First Federal Bank, A FSB, with 32 VA loans originated. Their average total fees are $11,248, which is $6,015 higher than the next largest lender, Mortgage Research Center, LLC.

The lowest fee Tuscaloosa VA lenders (with over 10 loans originated) are MORTGAGE SOLUTIONS OF COLORADO, LLC ($1,529), DHI MORTGAGE COMPANY, LTD. ($4,991), Mortgage Research Center, LLC ($5,233), MOVEMENT MORTGAGE, LLC ($7,297) and UNITED WHOLESALE MORTGAGE, LLC ($9,293).

The lowest rate Tuscaloosa VA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.31%), QUICKEN LOANS, LLC (5.95%), First Federal Bank, A FSB (6.18%), MOVEMENT MORTGAGE, LLC (6.52%) and UNITED WHOLESALE MORTGAGE, LLC (6.57%).

VA Loan Features

  • No down payment required
  • Negotiable and competitive interest rate.
  • Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5 percent and exemption for veterans receiving VA compensation).
  • VA rules limit the amount you can be charged for closing costs.
  • Closing costs are comparable with other financing types (and may be lower).
  • Closing costs may be paid by the seller.
  • No private mortgage insurance premiums are required.
  • An assumable mortgage.
  • Right to prepay your mortgage without penalty.
  • For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain cooperation of builder.
  • VA assistance to veteran borrowers in default due to temporary financial difficulty.