Mcallen FHA Loan Rates, Closing Costs & Stats

MCALLEN-EDINBURG-MISSION, TX

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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.

    Mcallen's 98 lenders originated 2,377 FHA loans during 2024. The total origination value was $627,695,000, with an average FHA loan value of $264,070.

    Mcallen FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Mcallen averaged 6.61% for the week of 2025-07-18, compared to the national average (all FHA variants) of 6.527% for the same period.

    Mcallen's average FHA mortgage closing costs are $9,797.

    The average rate for the prior week (2025-07-11) was 6.41% and one month ago for the week of 2025-06-13, the average rate was 6.66%.

    The average rate one year ago was 6.83%.

    For refis of the same type during the week of 2025-07-18, the average rate was 6.59%.

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

    Mcallen 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 Mcallen level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    CMG MORTGAGE, INC. 221 6.65% $13,273
    ASCENT HOME LENDING, LLC 195 5.59% $11,882
    CROSSCOUNTRY MORTGAGE, LLC 187 6.61% $13,715
    WILLOW BEND MORTGAGE COMPANY, LLC 147 6.41% $16,448
    UNITED WHOLESALE MORTGAGE, LLC 120 6.07% $13,614
    Paramount Residential Mortgage Group, Inc. 115 6.19% $12,849
    MOVEMENT MORTGAGE, LLC 84 6.43% $12,540
    FREEDOM MORTGAGE CORPORATION 80 6.06% $11,684
    DAS Acquisition Company, LLC 79 6.64% $11,185
    HOMESIDE FINANCIAL, LLC 77 6.53% $12,499
    DIRECTIONS EQUITY, LLC 66 6.10% $8,636
    INTERLINC MORTGAGE SERVICES, LLC 51 6.74% $11,822
    GUARANTEED RATE, INC. 48 6.37% $12,408
    QUICKEN LOANS, LLC 36 6.29% $11,676
    NATIONS RELIABLE LENDING, LLC 34 6.20% $14,639
    Nations Lending Corporation 30 6.63% $9,807
    SOUTHWEST FUNDING, LP 29 7.00% $11,371
    Flagstar Bank, FSB 29 6.02% $12,047
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 24 6.85% $10,512
    Lone Star National Bank 21 5.93% $12,740
    SUN WEST MORTGAGE COMPANY, INC. 19 6.78% $13,160
    PENNYMAC LOAN SERVICES, LLC 14 6.01% $8,977
    Equity Prime Mortgage LLC 14 6.46% $13,486
    PLAZA HOME MORTGAGE, INC. 14 6.36% $11,470
    AMERICAN PACIFIC MORTGAGE CORPORATION 13 6.69% $12,071
    EUSTIS AND AMERICAN MORTGAGE COMPANY 13 6.49% $11,902
    U.S. Bank 11 6.01% $10,988
    CITY FIRST MORTGAGE SERVICES, L.L.C. 10 6.24% $14,876
    NEWREZ LLC 10 6.44% $8,927
    PRIMARY RESIDENTIAL MORTGAGE, INC. 9 6.86% $7,127
    AMERICAN PORTFOLIO MORTGAGE CORPORATION 8 6.87% $9,599
    MORTGAGE FINANCIAL SERVICES, LLC 6 6.44% $10,881
    BAYSHORE MORTGAGE FUNDING, LLC 6 6.58% $9,225
    PLANET HOME LENDING, LLC 6 6.08% $6,474
    The Loan Store, Inc. 6 5.98% $15,770
    UNION HOME MORTGAGE CORP. 6 7.06% $11,658
    CARDINAL FINANCIAL 6 5.85% $10,564
    LEADERONE FINANCIAL CORPORATION 6 7.08% $15,662
    LOANDEPOT.COM, LLC 5 6.77% $10,589
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 5 6.62% $11,566
    AmeriHome Mortgage Company, LLC 5 6.30% $7,394
    SECURITYNATIONAL MORTGAGE COMPANY 5 6.90% $11,582
    Gateway First Bank 5 6.15% $15,740
    PRIMELENDING, A PLAINSCAPITAL COMPANY 4 6.97% $11,713
    Plains Commerce Bank 4 6.13% $12,782
    ZILLOW HOME LOANS, LLC 4 6.38% $11,823
    International Bank of Commerce 3 6.92% $8,476
    Lakeview Community Capital, LLC 3 6.38% $7,484
    SFMC, LP 3 6.96% $16,113
    MORTGAGE SOLUTIONS OF COLORADO, LLC 3 7.13% $10,428
    PNC Bank 3 6.83% $8,421
    GENEVA FINANCIAL, LLC 3 7.04% $12,841
    VILLAGE CAPITAL MORTGAGE 3 6.58% $4,030
    LOANPAL, LLC 2 5.75% $7,500
    CANOPY MORTGAGE, LLC 2 6.81% $12,485
    ENVOY MORTGAGE, LTD 2 6.63% $12,450
    BROKER SOLUTIONS, INC. 2 6.37% $8,731
    Ixonia Bank 2 7.63% $9,332
    Wells Fargo Bank 2 6.63% $12,891
    JPMorgan Chase Bank 2 6.38% $6,611
    Century Mortgage Company DBA Century Lending Company 2 6.19% $10,818
    BECKAM FUNDING CORP. 2 7.63% $14,572
    CALCON MUTUAL MORTGAGE LLC 2 6.44% $15,897
    TOWNE MORTGAGE COMPANY 2 6.25% $9,473
    MORIA DEVELOPMENT, INC. 2 6.81% $10,600
    Barrington Bank & Trust Company, N.A. 2 7.25% $8,346
    ST FIN CORP 1 5.38% $11,587
    BancorpSouth 1 6.25% $15,325
    Bank of America 1 5.00% $15,438
    BETTER MORTGAGE CORPORATION 1 5.63% $10,949
    Carrington Mortgage Services, LLC 1 6.38% $15,614
    Centennial Bank 1 6.50% $14,272
    CHURCHILL MORTGAGE CORPORATION 1 6.63% $10,851
    CORNERSTONE HOME LENDING, INC. 1 5.75% $22,066
    DATA MORTGAGE, INC. 1 5.99% $11,586
    DHI MORTGAGE COMPANY, LTD. 1 5.25% $23,219
    Flanagan State Bank 1 6.25% $12,824
    FLAT BRANCH MORTGAGE, INC. 1 6.75% $13,781
    HALLMARK HOME MORTGAGE, LLC 1 6.25% $16,081
    HOMEBRIDGE FINANCIAL SERVICES, INC. 1 6.50% $6,864
    Home Mortgage Alliance Corp 1 7.13% $7,343
    Hometown Equity Mortgage, LLC 1 5.63% $9,946
    JMAC LENDING, INC. 1 5.63% $11,188
    LAKEVIEW LOAN SERVICING, LLC 1 6.25% $6,677
    MICHIGAN MUTUAL, INC. 1 5.75% $9,073
    MID AMERICA MORTGAGE, INC. 1 6.25% $7,254
    Mortgage Research Center, LLC 1 6.25% $6,043
    NATIONS DIRECT MORTGAGE, LLC 1 5.63% $12,138
    Network Funding, L.P. 1 5.63% $11,851
    NFM, INC. 1 7.63% $13,820
    ONY GLO, INC. 1 5.75% $19,904
    OPEN MORTGAGE, LLC 1 6.25% $8,274
    PENTAGON FEDERAL CREDIT UNION 1 6.00% $14,750
    PHH Mortgage Corporation 1 6.13% $4,894
    PILGRIM MORTGAGE LLC 1 6.25% $9,554
    PREMIER MORTGAGE RESOURCES, L.L.C. 1 7.75% $10,458
    Texas Regional Bank 1 6.13% $12,853
    V.I.P. MORTGAGE, INC. 1 5.75% $15,665

    The top Mcallen FHA lender as defined by loan originations is CMG MORTGAGE, INC., with 221 FHA loans originated. Their average total fees are $13,273, which is $1,391 higher than the next largest lender, ASCENT HOME LENDING, LLC.

    The lowest fee Mcallen FHA lenders (with over 10 loans originated) are DIRECTIONS EQUITY, LLC ($8,636), NEWREZ LLC ($8,927), PENNYMAC LOAN SERVICES, LLC ($8,977), Nations Lending Corporation ($9,807) and FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($10,512).

    The lowest rate Mcallen FHA lenders (with over 10 loans originated) are ASCENT HOME LENDING, LLC (5.59%), Lone Star National Bank (5.93%), PENNYMAC LOAN SERVICES, LLC (6.01%), U.S. Bank (6.01%) and Flagstar Bank, FSB (6.02%).

    Mcallen FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    MCALLEN-EDINBURG-MISSION, TX HIDALGO 2022 $420,680 $538,650 $651,050 $809,150
    MCALLEN-EDINBURG-MISSION, TX HIDALGO 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).