London FHA Loan Rates, Closing Costs & Stats

London, KY

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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.

    London's 53 lenders originated 327 FHA loans during 2024. The total origination value was $59,885,000, with an average FHA loan value of $183,135.

    London FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in London averaged 6.68% for the week of 2025-07-18, compared to the national average (all FHA variants) of 6.527% for the same period.

    London's average FHA mortgage closing costs are $6,646.

    The average rate for the prior week (2025-07-11) was 6.68% and one month ago for the week of 2025-06-13, the average rate was 6.63%.

    The average rate one year ago was 6.89%.

    For refis of the same type during the week of 2025-07-18, the average rate was 6.66%.

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

    London 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 London level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    QUICKEN LOANS, LLC 51 6.47% $9,332
    POLARIS HOME FUNDING CORP. 39 6.66% $9,564
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 32 7.06% $5,368
    Equity Prime Mortgage LLC 20 6.51% $7,984
    STOCKTON MORTGAGE CORPORATION 15 6.52% $8,887
    UNITED WHOLESALE MORTGAGE, LLC 14 6.50% $9,994
    FREEDOM MORTGAGE CORPORATION 11 6.49% $8,157
    PENNYMAC LOAN SERVICES, LLC 10 6.36% $8,838
    EVERETT FINANCIAL, INC. 9 6.49% $8,387
    AMERISAVE MORTGAGE CORPORATION 7 6.57% $9,532
    BROKER SOLUTIONS, INC. 6 6.40% $9,364
    GoPrime Mortgage, Inc. 6 6.48% $4,848
    NEWREZ LLC 5 6.38% $8,837
    Plains Commerce Bank 5 6.73% $5,658
    GENEVA FINANCIAL, LLC 4 6.38% $8,428
    Forcht Bank 4 6.53% $5,207
    M&T Bank 3 7.29% $9,693
    LAKEVIEW LOAN SERVICING, LLC 3 6.58% $8,467
    T2 FINANCIAL LLC 3 5.75% $7,987
    Flagstar Bank, FSB 3 6.38% $12,765
    Carrington Mortgage Services, LLC 2 6.69% $14,107
    TOP FLITE FINANCIAL, INC. 2 6.81% $16,945
    LOANDEPOT.COM, LLC 2 6.06% $9,311
    Northpointe Bank 2 6.88% $8,291
    Century Mortgage Company DBA Century Lending Company 2 7.00% $7,154
    Mr. Cooper ( Nationstar Mortgage ) 2 6.50% $10,945
    ZILLOW HOME LOANS, LLC 1 6.63% $8,595
    MORTGAGE INVESTORS GROUP, INC. 1 6.63% $7,874
    AmeriHome Mortgage Company, LLC 1 7.63% $6,189
    AXIA FINANCIAL, LLC 1 6.25% $15,986
    CALCON MUTUAL MORTGAGE LLC 1 7.13% $12,978
    CARDINAL FINANCIAL 1 7.25% $14,296
    CROSSCOUNTRY MORTGAGE, LLC 1 6.75% $9,758
    ENDEAVOR CAPITAL, LLC. 1 6.49% $9,881
    FirstBank 1 7.00% $7,868
    GUARANTEED RATE, INC. 1 6.38% $6,729
    Ixonia Bank 1 7.25% $13,779
    LIBERTY HOME MORTGAGE CORPORATION 1 7.25% $24,448
    Magnolia Bank 1 6.00% $8,511
    AMERICAN PACIFIC MORTGAGE CORPORATION 1 7.25% $7,797
    Mortgage Research Center, LLC 1 6.25% $5,490
    MUTUAL OF OMAHA MORTGAGE, INC. 1 6.63% $10,126
    OPEN MORTGAGE, LLC 1 7.63% $14,352
    Peoples Exchange Bank 1 6.75% $6,077
    PNC Bank 1 7.13% $5,898
    PRIMELENDING, A PLAINSCAPITAL COMPANY 1 7.63% $7,285
    Renasant Bank 1 6.13% $7,700
    Republic Bank & Trust Company 1 7.13% $5,210
    Republic State Mortgage Co. 1 6.25% $8,098
    RUOFF MORTGAGE COMPANY, INC. 1 6.25% $6,200
    The Huntington National Bank 1 6.75% $11,491
    TOWNE MORTGAGE COMPANY 1 5.99% $11,948
    V.I.P. MORTGAGE, INC. 1 6.25% $7,761

    The top London FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 51 FHA loans originated. Their average total fees are $9,332, which is $232 lower than the next largest lender, POLARIS HOME FUNDING CORP..

    The lowest fee London FHA lenders (with over 10 loans originated) are ARK-LA-TEX FINANCIAL SERVICES, LLC. ($5,368), Equity Prime Mortgage LLC ($7,984), FREEDOM MORTGAGE CORPORATION ($8,157), PENNYMAC LOAN SERVICES, LLC ($8,838) and STOCKTON MORTGAGE CORPORATION ($8,887).

    The lowest rate London FHA lenders (with over 10 loans originated) are PENNYMAC LOAN SERVICES, LLC (6.36%), QUICKEN LOANS, LLC (6.47%), FREEDOM MORTGAGE CORPORATION (6.49%), UNITED WHOLESALE MORTGAGE, LLC (6.50%) and Equity Prime Mortgage LLC (6.51%).

    London FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    LONDON, KY CLAY 2022 $420,680 $538,650 $651,050 $809,150
    LONDON, KY KNOX 2022 $420,680 $538,650 $651,050 $809,150
    LONDON, KY LAUREL 2022 $420,680 $538,650 $651,050 $809,150
    LONDON, KY WHITLEY 2022 $420,680 $538,650 $651,050 $809,150
    LONDON, KY CLAY 2023 $472,030 $604,400 $730,525 $907,900
    LONDON, KY KNOX 2023 $472,030 $604,400 $730,525 $907,900
    LONDON, KY LAUREL 2023 $472,030 $604,400 $730,525 $907,900
    LONDON, KY WHITLEY 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).