Ann Arbor FHA Loan Rates, Closing Costs & Stats

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 58 lenders originated 260 FHA loans during 2023. The total origination value was $69,090,000, with an average FHA loan value of $265,731.

Ann Arbor FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Ann Arbor averaged 6.27% for the week of 2024-10-11, compared to the national average (all FHA variants) of 6.1% for the same period.

Ann Arbor's average FHA mortgage closing costs are $7,508.

The average rate for the prior week (2024-10-04) was 5.69% and one month ago for the week of 2024-09-06, the average rate was 6.12%.

The average rate one year ago was 7.05%.

For refis of the same type during the week of 2024-10-11, the average rate was 6.18%.

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/closing costs and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Ann Arbor level.

Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
QUICKEN LOANS, LLC 55 6.17% $11,863
UNITED WHOLESALE MORTGAGE, LLC 27 6.53% $11,538
GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 12 6.52% $12,501
NEWREZ LLC 11 6.28% $13,554
CROSSCOUNTRY MORTGAGE, LLC 11 6.82% $10,447
University Bank 10 6.81% $9,871
MICHIGAN MUTUAL, INC. 8 6.92% $12,211
STAUNTON FINANCIAL, INC. 7 6.85% $10,987
MORTGAGE 1 INCORPORATED 6 6.77% $10,621
BROKER SOLUTIONS, INC. 5 6.30% $12,299
LOANDEPOT.COM, LLC 5 6.32% $15,645
Flagstar Bank, FSB 5 6.83% $7,444
The Huntington National Bank 4 6.69% $13,354
CARDINAL FINANCIAL 4 6.87% $8,520
FREEDOM MORTGAGE CORPORATION 4 6.59% $18,255
Mr. Cooper ( Nationstar Mortgage ) 3 5.75% $10,811
CALIBER HOME LOANS, INC. 3 6.33% $8,026
GUARANTEED RATE, INC. 3 6.46% $10,691
M/I FINANCIAL, LLC 3 6.58% $12,330
PENNYMAC LOAN SERVICES, LLC 3 6.29% $16,071
PNC Bank 2 7.50% $10,048
AMERISAVE MORTGAGE CORPORATION 2 6.19% $16,006
Carrington Mortgage Services, LLC 2 5.88% $17,672
EVERETT FINANCIAL, INC. 2 6.38% $14,728
GVC MORTGAGE, INC. 2 7.06% $11,914
HOWARD HANNA FINANCIAL SERVICES, INC. 2 6.63% $12,040
LAKE MICHIGAN CREDIT UNION 2 6.88% $8,949
MUTUAL OF OMAHA MORTGAGE, INC. 2 6.25% $13,301
Plains Commerce Bank 2 5.94% $13,474
PLAZA HOME MORTGAGE, INC. 2 7.19% $10,189
PULTE MORTGAGE LLC 2 6.25% $7,154
RUOFF MORTGAGE COMPANY, INC. 2 6.56% $10,585
SUN WEST MORTGAGE COMPANY, INC. 2 6.12% $9,249
UNION HOME MORTGAGE CORP. 2 6.19% $10,762
Mortgage Research Center, LLC 1 6.63% $2,642
First Savings Bank 1 6.25% $15,799
TOP FLITE FINANCIAL, INC. 1 7.63% $7,009
NATIONS RELIABLE LENDING, LLC 1 7.75% $8,061
NATIONWIDE MORTGAGE BANKERS, INC. 1 5.75% $12,448
FIRST COMMUNITY MORTGAGE, INC. 1 6.63% $8,629
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 1 7.25% $6,645
TOWNE MORTGAGE COMPANY 1 6.63% $8,085
Waterstone Mortgage Corporation 1 7.13% $9,664
AMERICAN FINANCIAL NETWORK, INC. 1 7.75% $22,102
Preston Home Loans Inc 1 7.25% $13,398
Bank of Ann Arbor 1 6.38% $7,039
DELMAR FINANCIAL COMPANY 1 7.25% $13,520
ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 6.50% $13,788
CORNERSTONE HOME LENDING, INC. 1 6.88% $7,090
VILLAGE CAPITAL MORTGAGE 1 7.38% $3,969
BETTER MORTGAGE CORPORATION 1 6.50% $8,423
LAKEVIEW LOAN SERVICING, LLC 1 5.75% $16,725
MICHIGAN FIRST CREDIT UNION 1 6.13% $7,368
KeyBank 1 6.38% $9,857
J. VIRGIL, INC. 1 6.63% $12,429
Independent Bank 1 6.00% $7,061
MORTGAGE ACCESS CORP. 1 6.75% $10,461
MORTGAGE CENTER L.C 1 6.75% $8,681

The top Ann Arbor FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 55 FHA loans originated. Their average total fees are $11,863, which is $325 higher than the next largest lender, UNITED WHOLESALE MORTGAGE, LLC.

The lowest fee Ann Arbor FHA lenders (with over 10 loans originated) are University Bank ($9,871), CROSSCOUNTRY MORTGAGE, LLC ($10,447), UNITED WHOLESALE MORTGAGE, LLC ($11,538), QUICKEN LOANS, LLC ($11,863) and GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION ($12,501).

The lowest rate Ann Arbor FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (6.17%), NEWREZ LLC (6.28%), GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION (6.52%), UNITED WHOLESALE MORTGAGE, LLC (6.53%) and University Bank (6.81%).

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
ANN ARBOR, MI WASHTENAW 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).