Ann Arbor FHA Loans

ANN ARBOR, MI

  • JUMP TO:
  • Trends
  • Rates vs Fees
  • Top Lenders
  • Markets
  • Loan Limits

    • 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).