Montgomery FHA Loan Rates, Closing Costs & Stats

MONTGOMERY, 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.

    Montgomery's 96 lenders originated 1,442 FHA loans during 2024. The total origination value was $322,970,000, with an average FHA loan value of $223,974.

    Montgomery FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Montgomery averaged 6.54% for the week of 2025-07-18, compared to the national average (all FHA variants) of 6.527% for the same period.

    Montgomery's average FHA mortgage closing costs are $7,027.

    The average rate for the prior week (2025-07-11) was 6.74% and one month ago for the week of 2025-06-13, the average rate was 6.5%.

    The average rate one year ago was 6.96%.

    For refis of the same type during the week of 2025-07-18, the average rate was 6.33%.

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

    Montgomery 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 Montgomery level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    GUILD MORTGAGE COMPANY 233 6.46% $10,074
    CROSSCOUNTRY MORTGAGE, LLC 126 6.36% $10,970
    Trustmark National Bank 106 6.36% $10,127
    QUICKEN LOANS, LLC 92 6.41% $9,278
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 80 6.67% $8,214
    Renasant Bank 78 6.23% $9,959
    UNITED WHOLESALE MORTGAGE, LLC 61 6.35% $10,556
    CMG MORTGAGE, INC. 50 6.65% $10,489
    DHI MORTGAGE COMPANY, LTD. 35 5.05% $7,966
    MOVEMENT MORTGAGE, LLC 34 6.68% $10,794
    FREEDOM MORTGAGE CORPORATION 28 6.12% $11,106
    Flagstar Bank, FSB 26 6.26% $7,833
    Synovus Bank 25 6.44% $9,009
    UNION HOME MORTGAGE CORP. 22 6.37% $10,952
    GMFS LLC 22 6.59% $4,884
    LOANDEPOT.COM, LLC 20 6.59% $8,873
    PENNYMAC LOAN SERVICES, LLC 18 5.99% $8,298
    PRIMELENDING, A PLAINSCAPITAL COMPANY 18 6.37% $8,608
    Regions Bank 15 6.33% $7,295
    SouthPoint Bank 14 6.11% $6,527
    TOWNE MORTGAGE COMPANY 13 6.33% $11,494
    Mr. Cooper ( Nationstar Mortgage ) 12 6.61% $8,761
    GUARANTEED RATE, INC. 11 6.41% $10,099
    BROKER SOLUTIONS, INC. 11 6.95% $9,103
    Mortgage Research Center, LLC 10 6.64% $4,300
    STOCKTON MORTGAGE CORPORATION 9 6.60% $11,781
    FIRST COMMUNITY MORTGAGE, INC. 9 6.53% $11,418
    Carrington Mortgage Services, LLC 9 6.21% $10,919
    First Federal Bank 8 6.64% $7,507
    Hamilton Mortgage Corporation 7 6.50% $8,583
    NEWREZ LLC 6 6.17% $9,412
    Consumer First Mortgage, Inc. 6 6.69% $9,668
    SOUTHEAST MORTGAGE OF GEORGIA, INC. 6 6.10% $10,317
    AMERICAN FINANCIAL NETWORK, INC. 5 7.65% $9,831
    CANOPY MORTGAGE, LLC 5 6.70% $10,036
    Assurance Financial Group, L.L.C. 5 6.68% $7,717
    ZILLOW HOME LOANS, LLC 5 6.80% $8,761
    AmeriHome Mortgage Company, LLC 5 6.22% $7,515
    LAKEVIEW LOAN SERVICING, LLC 5 6.43% $10,144
    LOANPAL, LLC 5 6.17% $6,762
    ACOPIA, LLC 4 6.88% $9,680
    AMERISAVE MORTGAGE CORPORATION 4 6.53% $8,810
    First Federal Bank, A FSB 4 6.09% $8,879
    OCMBC, INC. 4 7.38% $10,199
    ServisFirst Bank 4 6.41% $8,914
    EMM LOANS LLC 3 6.33% $18,309
    MICHIGAN MUTUAL, INC. 3 6.33% $7,941
    Prosperity Home Mortgage, LLC 3 5.67% $12,270
    ENDEAVOR CAPITAL, LLC. 3 6.74% $8,465
    BancorpSouth 3 5.63% $11,270
    South State Bank 3 5.54% $10,685
    AMERICAN FINANCIAL RESOURCES, INC. 3 6.21% $11,504
    ATLANTIC BAY MORTGAGE GROUP, L.L.C. 3 6.50% $9,196
    Residential Acceptance Corporation 3 7.71% $5,937
    NEW DAY FINANCIAL, LLC 2 7.44% $4,877
    FirstBank 2 6.81% $7,448
    MORTGAGE SOLUTIONS OF COLORADO, LLC 2 7.25% $6,127
    M&T Bank 2 6.19% $7,076
    PNC Bank 2 6.56% $4,880
    CARDINAL FINANCIAL 2 6.13% $9,288
    SOUTHWEST FUNDING, LP 2 7.75% $8,635
    United Community Bank 2 6.69% $8,007
    Equity Prime Mortgage LLC 1 7.38% $8,138
    PENTAGON FEDERAL CREDIT UNION 1 6.38% $7,081
    Plains Commerce Bank 1 6.75% $5,437
    PLAZA HOME MORTGAGE, INC. 1 5.88% $9,172
    VANDERBILT MORTGAGE AND FINANCE, INC. 1 4.99% $10,756
    LIBERTY HOME MORTGAGE CORPORATION 1 7.00% $3,731
    MUTUAL OF OMAHA MORTGAGE, INC. 1 7.25% $6,742
    EVERETT FINANCIAL, INC. 1 6.88% $14,339
    Cornerstone First Mortgage, Inc 1 6.25% $9,233
    RELIANCE FIRST CAPITAL, LLC 1 7.13% $5,439
    CIS Financial Services, Inc. 1 6.63% $9,841
    FBC MORTGAGE, LLC 1 5.50% $7,528
    ROYAL UNITED MORTGAGE LLC 1 6.50% $10,113
    Alcova Mortgage LLC 1 7.25% $8,428
    VILLAGE CAPITAL MORTGAGE 1 6.75% $7,226
    Capital City Home Loans, LLC 1 6.25% $8,714
    MORTGAGE INVESTORS GROUP, INC. 1 5.75% $8,200
    LEADERONE FINANCIAL CORPORATION 1 5.75% $13,461
    SOUTHWEST STAGE FUNDING, LLC 1 5.38% $6,819
    BETTER MORTGAGE CORPORATION 1 5.63% $19,069
    SUN WEST MORTGAGE COMPANY, INC. 1 7.88% $12,228
    MILEND, INC. 1 6.63% $11,569
    The Central Trust Bank 1 6.00% $10,715
    Home Mortgage Alliance Corp 1 6.25% $17,189
    Truist 1 6.75% $10,585
    AMERITRUST MORTGAGE CORPORATION 1 6.99% $9,450
    AMERICAN FINANCING CORPORATION 1 6.75% $4,667
    LENOX FINANCIAL MORTGAGE CORPORATION 1 5.75% $7,697
    Keystone Funding, Inc. 1 6.25% $12,102
    Valley National Bank 1 6.25% $6,051
    EUSTIS AND AMERICAN MORTGAGE COMPANY 1 6.63% $14,101
    NFM, INC. 1 6.63% $7,908
    Northpointe Bank 1 5.75% $15,251
    Wells Fargo Bank 1 6.75% $7,995

    The top Montgomery FHA lender as defined by loan originations is GUILD MORTGAGE COMPANY, with 233 FHA loans originated. Their average total fees are $10,074, which is $896 lower than the next largest lender, CROSSCOUNTRY MORTGAGE, LLC.

    The lowest fee Montgomery FHA lenders (with over 10 loans originated) are Mortgage Research Center, LLC ($4,300), GMFS LLC ($4,884), SouthPoint Bank ($6,527), Regions Bank ($7,295) and Flagstar Bank, FSB ($7,833).

    The lowest rate Montgomery FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.05%), PENNYMAC LOAN SERVICES, LLC (5.99%), SouthPoint Bank (6.11%), FREEDOM MORTGAGE CORPORATION (6.12%) and Renasant Bank (6.23%).

    Montgomery FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    MONTGOMERY, AL AUTAUGA 2022 $420,680 $538,650 $651,050 $809,150
    MONTGOMERY, AL ELMORE 2022 $420,680 $538,650 $651,050 $809,150
    MONTGOMERY, AL LOWNDES 2022 $420,680 $538,650 $651,050 $809,150
    MONTGOMERY, AL MONTGOMERY 2022 $420,680 $538,650 $651,050 $809,150
    MONTGOMERY, AL AUTAUGA 2023 $472,030 $604,400 $730,525 $907,900
    MONTGOMERY, AL ELMORE 2023 $472,030 $604,400 $730,525 $907,900
    MONTGOMERY, AL LOWNDES 2023 $472,030 $604,400 $730,525 $907,900
    MONTGOMERY, AL MONTGOMERY 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).