Lancaster FHA Loan Rates, Closing Costs & Stats

LANCASTER, PA

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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.

    Lancaster's 103 lenders originated 709 FHA loans during 2024. The total origination value was $188,485,000, with an average FHA loan value of $265,846.

    Lancaster FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Lancaster averaged 6.52% for the week of 2025-07-18, compared to the national average (all FHA variants) of 6.527% for the same period.

    Lancaster's average FHA mortgage closing costs are $8,669.

    The average rate for the prior week (2025-07-11) was 6.72% and one month ago for the week of 2025-06-13, the average rate was 6.68%.

    The average rate one year ago was 6.64%.

    For refis of the same type during the week of 2025-07-18, the average rate was 6.55%.

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

    Lancaster 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 Lancaster level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    QUICKEN LOANS, LLC 77 6.36% $13,433
    GUILD MORTGAGE COMPANY 59 6.57% $10,924
    UNITED WHOLESALE MORTGAGE, LLC 39 6.03% $13,545
    FREEDOM MORTGAGE CORPORATION 32 6.54% $14,984
    BROKER SOLUTIONS, INC. 32 6.66% $13,870
    PENNYMAC LOAN SERVICES, LLC 31 6.17% $10,950
    CROSSCOUNTRY MORTGAGE, LLC 23 6.54% $13,577
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 18 6.53% $13,200
    LOANDEPOT.COM, LLC 17 6.51% $13,851
    Fulton Bank 15 6.01% $10,192
    NEWREZ LLC 15 6.54% $11,712
    NFM, INC. 11 6.74% $15,008
    CMG MORTGAGE, INC. 10 6.94% $13,696
    York Traditions Bank 10 6.46% $10,333
    GUARANTEED RATE AFFINITY, LLC 9 6.55% $13,451
    Equity Prime Mortgage LLC 8 6.84% $13,959
    EMM LOANS LLC 8 6.37% $12,585
    RADIUS FINANCIAL GROUP INC. 7 6.73% $13,317
    MEMBERS 1ST FEDERAL CREDIT UNION 7 6.23% $8,296
    Mr. Cooper ( Nationstar Mortgage ) 6 6.81% $16,601
    Sierra Pacific Mortgage Company, Inc. 6 6.65% $11,133
    M&T Bank 6 6.27% $8,533
    GUARANTEED RATE, INC. 5 6.54% $14,835
    AMERICAN FINANCIAL NETWORK, INC. 5 6.42% $14,848
    RELIANCE FIRST CAPITAL, LLC 4 6.56% $14,033
    Citizens Bank 4 6.31% $12,234
    First National Bank of Pennsylvania 4 6.44% $7,784
    PLAZA HOME MORTGAGE, INC. 4 7.12% $11,915
    Carrington Mortgage Services, LLC 4 6.81% $14,831
    Mortgage America, Inc. 4 6.75% $11,859
    Homesale Mortgage, LLC 4 6.72% $9,832
    NVR Mortgage Finance, Inc. 4 5.96% $9,929
    HOWARD HANNA FINANCIAL SERVICES, INC. 4 6.94% $10,687
    MOVEMENT MORTGAGE, LLC 4 6.56% $11,771
    MUTUAL OF OMAHA MORTGAGE, INC. 4 6.38% $19,948
    LAKEVIEW LOAN SERVICING, LLC 4 6.38% $9,496
    MDE Home Loans, LLC 4 6.41% $19,862
    East Coast Capital Corp. 4 6.50% $15,324
    FIRST ALLIANCE HOME MORTGAGE, LLC 3 6.42% $15,168
    Alcova Mortgage LLC 3 6.16% $13,052
    HOMESIDE FINANCIAL, LLC 3 6.16% $14,577
    LOANPAL, LLC 3 6.21% $11,307
    Mid Penn Bank 3 6.08% $17,294
    CARDINAL FINANCIAL 3 6.75% $13,227
    PLANET HOME LENDING, LLC 3 6.00% $6,079
    VILLAGE CAPITAL MORTGAGE 3 6.58% $7,787
    Univest Bank and Trust Co. 3 6.21% $12,691
    AMERICAN PACIFIC MORTGAGE CORPORATION 3 6.29% $17,452
    AmeriHome Mortgage Company, LLC 3 6.41% $6,866
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 3 6.33% $9,772
    PRIMARY RESIDENTIAL MORTGAGE, INC. 2 6.94% $16,951
    ALLIED MORTGAGE GROUP, INC. 2 6.88% $10,772
    AMERICAN FINANCING CORPORATION 2 6.31% $12,334
    AMERISAVE MORTGAGE CORPORATION 2 6.13% $12,119
    Ixonia Bank 2 6.50% $11,826
    Meridian Bank Corporation 2 6.44% $14,736
    MILEND, INC. 2 6.37% $20,044
    NATIONS DIRECT MORTGAGE, LLC 2 7.19% $15,987
    NBKC BANK 2 6.19% $10,526
    Paramount Residential Mortgage Group, Inc. 2 5.88% $14,648
    POLARIS HOME FUNDING CORP. 2 6.75% $14,080
    Princeton Mortgage Corporation 2 6.63% $12,210
    The Ephrata National Bank 2 6.25% $12,609
    TIDEWATER MORTGAGE SERVICES, INC. 2 6.13% $10,152
    TOP FLITE FINANCIAL, INC. 2 7.25% $20,037
    UNION HOME MORTGAGE CORP. 2 6.81% $15,937
    Wells Fargo Bank 2 7.19% $10,322
    NETWORK CAPITAL FUNDING CORPORATION 1 5.88% $17,780
    JPMorgan Chase Bank 1 6.75% $11,152
    HOMESTEAD FUNDING CORP. 1 7.75% $14,108
    HOMESPIRE MORTGAGE CORPORATION 1 5.75% $14,687
    Orrstown Bank 1 6.88% $11,073
    CityWorth Mortgage LLC 1 6.00% $20,826
    Home Mortgage Alliance Corp 1 7.13% $12,695
    PIKE CREEK MORTGAGE SERVICES, INC. 1 7.75% $11,305
    GENEVA FINANCIAL, LLC 1 6.75% $12,255
    Firstrust Savings Bank 1 6.50% $15,089
    Valley National Bank 1 6.63% $12,420
    FIRST HOME MORTGAGE CORPORATION 1 6.75% $13,742
    CHURCHILL MORTGAGE CORPORATION 1 6.63% $12,249
    Prosperity Home Mortgage, LLC 1 6.13% $9,310
    Fifth Third Bank 1 6.25% $9,851
    Evolve Bank & Trust 1 6.25% $13,044
    RAPID MORTGAGE COMPANY 1 7.25% $11,855
    DHI MORTGAGE COMPANY, LTD. 1 4.99% $14,152
    Customers Bank 1 6.25% $11,684
    SUCCESS MORTGAGE PARTNERS, INC. 1 6.13% $15,635
    T2 FINANCIAL LLC 1 7.50% $9,965
    TD Bank 1 6.50% $7,161
    Waterstone Mortgage Corporation 1 6.75% $18,874
    ZILLOW HOME LOANS, LLC 1 5.88% $8,644
    Wilmington Savings Fund Society, FSB 1 6.13% $15,270
    TOTAL MORTGAGE SERVICES, LLC 1 6.13% $26,037
    MORTGAGE SOLUTIONS OF COLORADO, LLC 1 7.75% $7,018
    MICHIGAN MUTUAL, INC. 1 5.88% $20,360
    Magnolia Bank 1 6.63% $9,866
    LOANLEADERS OF AMERICA, INC. 1 4.99% $15,406
    Keystone Funding, Inc. 1 6.75% $8,725
    MY MORTGAGE, INC. 1 5.75% $8,800
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 6.63% $11,015
    Nations Lending Corporation 1 5.50% $30,940
    NATIONWIDE MORTGAGE BANKERS, INC. 1 5.88% $13,840
    CLIFFCO, INC. 1 6.50% $15,628

    The top Lancaster FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 77 FHA loans originated. Their average total fees are $13,433, which is $2,510 higher than the next largest lender, GUILD MORTGAGE COMPANY.

    The lowest fee Lancaster FHA lenders (with over 10 loans originated) are Fulton Bank ($10,192), York Traditions Bank ($10,333), GUILD MORTGAGE COMPANY ($10,924), PENNYMAC LOAN SERVICES, LLC ($10,950) and NEWREZ LLC ($11,712).

    The lowest rate Lancaster FHA lenders (with over 10 loans originated) are Fulton Bank (6.01%), UNITED WHOLESALE MORTGAGE, LLC (6.03%), PENNYMAC LOAN SERVICES, LLC (6.17%), QUICKEN LOANS, LLC (6.36%) and York Traditions Bank (6.46%).

    Lancaster FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    LANCASTER, PA LANCASTER 2022 $420,680 $538,650 $651,050 $809,150
    LANCASTER, PA LANCASTER 2023 $472,030 $604,400 $730,525 $907,900

    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).