Ann Arbor FHA Loan Rates, Closing Costs & Stats

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 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 6.5% for the week of 2024-11-08, compared to the national average (all FHA variants) of 6.425% for the same period.

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

    The average rate for the prior week (2024-11-01) was 6.27% and one month ago for the week of 2024-10-04, the average rate was 5.99%.

    The average rate one year ago was 7.54%.

    For refis of the same type during the week of 2024-11-08, the average rate was 6.3%.

    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).