Ann Arbor FHA Loans

ANN ARBOR, MI

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.

Ann Arbor's 84 lenders originated 623 FHA loans during 2021. The total origination value was $156,475,000, with an average FHA loan value of $251,164.

Ann Arbor FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Ann Arbor averaged 5.15% for the week of 2022-05-13, compared to the national average (all FHA variants) of 5.361% for the same period.

The average rate for the prior week (2022-05-06) was 5.08% and one month ago for the week of 2022-04-08, the average rate was 4.75%.

The average rate one year ago was 3.05%.

For refis of the same type during the week of 2022-05-13, the average rate was 5%.

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

Ann Arbor FHA Loan Lenders by Rates & Fees

The below table looks at the average fees and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Ann Arbor level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
QUICKEN LOANS, LLC 149 2.71% $5,669
UNITED WHOLESALE MORTGAGE, LLC 27 2.75% $8,514
UNIVERSITY LENDING GROUP, LLC 22 3.03% $7,017
CALIBER HOME LOANS, INC. 21 3.06% $6,670
MORTGAGE 1 INCORPORATED 17 3.35% $7,137
Mr. Cooper ( Nationstar Mortgage ) 15 3.32% $4,487
HOMESITE MORTGAGE, LLC 13 3.20% $8,589
FREEDOM MORTGAGE CORPORATION 13 2.82% $4,505
LAKEVIEW LOAN SERVICING, LLC 12 3.01% $4,874
CROSSCOUNTRY MORTGAGE, LLC 12 3.23% $8,804
PENNYMAC LOAN SERVICES, LLC 12 3.21% $5,030
BROKER SOLUTIONS, INC. 9 3.04% $8,321
GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 9 3.25% $7,066
STAUNTON FINANCIAL, INC. 9 2.86% $7,039
NEWREZ LLC 8 3.09% $6,574
ACADEMY MORTGAGE CORPORATION 8 3.25% $7,916
HOME POINT FINANCIAL CORPORATION 7 2.57% $6,988
Flagstar Bank, FSB 7 2.94% $7,496
The Huntington National Bank 7 3.04% $6,649
RUOFF MORTGAGE COMPANY, INC. 7 3.25% $5,501
LOANDEPOT.COM, LLC 6 3.00% $8,632
VILLAGE CAPITAL & INVESTMENT LLC 6 3.02% $2,141
AMERISAVE MORTGAGE CORPORATION 5 3.00% $7,934
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 5 3.43% $9,052
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 5 3.25% $7,006
AMERICAN FINANCIAL NETWORK, INC. 5 3.15% $13,488
MICHIGAN MUTUAL, INC. 4 3.13% $7,300
TJC Mortgage, Inc. 4 2.97% $8,959
HOMEBRIDGE FINANCIAL SERVICES, INC. 4 2.63% $4,877
First Guaranty Mortgage Corporation 4 3.31% $4,799
TCF National Bank 4 2.75% $5,904
PLANET HOME LENDING, LLC 4 2.59% $3,385
LAKE MICHIGAN CREDIT UNION 3 2.96% $7,426
AmeriHome Mortgage Company, LLC 3 2.79% $4,092
SUCCESS MORTGAGE PARTNERS, INC. 3 3.33% $7,978
MORTGAGE CENTER L.C 3 3.38% $5,777
InterContinental Capital Group, Inc 3 2.83% $6,203
J. VIRGIL, INC. 3 3.13% $11,002
M/I FINANCIAL, LLC 3 2.75% $9,187
Lakeview Community Capital, LLC 3 3.25% $4,237
Level One Bank 2 2.81% $6,168
ADVISORS CAPITAL, INC. 2 2.94% $7,043
EVERETT FINANCIAL, INC. 2 3.94% $6,250
HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 2 2.88% $6,923
INSPIRE HOME LOANS INC. 2 3.81% $8,175
MICHIGAN FIRST CREDIT UNION 2 3.25% $8,355
PLAZA HOME MORTGAGE, INC. 2 2.94% $4,727
UNION HOME MORTGAGE CORP. 2 3.38% $7,617
U.S. Bank 2 3.50% $4,686
MID AMERICA MORTGAGE, INC. 1 3.63% $4,403
KELLER MORTGAGE, LLC 1 2.75% $6,590
MLD MORTGAGE INC. 1 3.00% $9,523
Ixonia Bank 1 3.13% $8,093
HOWARD HANNA FINANCIAL SERVICES, INC. 1 4.50% $5,630
Mortgage Research Center, LLC 1 3.13% $5,490
Hometown Lenders, Inc. 1 3.25% $10,746
NATIONS DIRECT MORTGAGE, LLC 1 2.75% $6,412
NATIONS RELIABLE LENDING, LLC 1 3.13% $8,813
HOMESIDE FINANCIAL, LLC 1 2.45% $9,289
GVC MORTGAGE, INC. 1 3.25% $6,052
GENEVA FINANCIAL, LLC 1 2.88% $4,226
Platinum Home Mortgage Corporation 1 2.99% $8,233
AMERICAN FINANCING CORPORATION 1 3.00% $12,030
Preston Home Loans Inc 1 3.25% $6,675
PRIMELENDING, A PLAINSCAPITAL COMPANY 1 3.75% $10,210
First State Bank 1 3.63% $5,325
RESIDENTIAL BANCORP. 1 2.63% $6,583
ROSS MORTGAGE CORPORATION 1 4.50% $8,018
First Home Bank 1 3.75% $13,622
FINANCE OF AMERICA MORTGAGE LLC 1 2.63% $8,805
Fifth Third Bank 1 2.88% $7,258
SUN WEST MORTGAGE COMPANY, INC. 1 2.50% $5,289
EMBRACE HOME LOANS, INC. 1 2.63% $7,569
THE ANDERSON FINANCIAL GROUP, INC. 1 2.88% $9,900
The Federal Savings Bank 1 2.50% $9,243
Carrington Mortgage Services, LLC 1 3.63% $6,945
BELEM SERVICING LLC 1 3.25% $10,341
TOWNE MORTGAGE COMPANY 1 3.13% $7,215
ALL WESTERN MORTGAGE, INC. 1 3.25% $13,743
UNITED SECURITY FINANCIAL CORP 1 2.50% $4,526
Low VA Rates, LLC 1 2.50% $5,074
Luxury Mortgage Corp. 1 3.75% $7,343
Bank of England 1 3.63% $11,192
LIBERTY HOME MORTGAGE CORPORATION 1 3.25% $6,516

The top Ann Arbor FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 149 FHA loans originated. Their average total fees are $5,669, which is $2,845 lower than the next largest lender, UNITED WHOLESALE MORTGAGE, LLC.

The lowest fee Ann Arbor FHA lenders (with over 10 loans originated) are Mr. Cooper ( Nationstar Mortgage ) ($4,487), FREEDOM MORTGAGE CORPORATION ($4,505), LAKEVIEW LOAN SERVICING, LLC ($4,874), PENNYMAC LOAN SERVICES, LLC ($5,030) and QUICKEN LOANS, LLC ($5,669).

The lowest rate Ann Arbor FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (2.71%), UNITED WHOLESALE MORTGAGE, LLC (2.75%), FREEDOM MORTGAGE CORPORATION (2.82%), LAKEVIEW LOAN SERVICING, LLC (3.01%) and UNIVERSITY LENDING GROUP, LLC (3.03%).

Ann Arbor FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
ANN ARBOR, MI WASHTENAW 2022 $420,680 $538,650 $651,050 $809,150

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).