Grand Rapids FHA Loan Rates, Closing Costs & Stats

GRAND RAPIDS-KENTWOOD, 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.

Grand Rapids's 109 lenders originated 1,665 FHA loans during 2024. The total origination value was $431,725,000, with an average FHA loan value of $259,294.

Grand Rapids FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Grand Rapids averaged 6.65% for the week of 2025-07-18, compared to the national average (all FHA variants) of 6.527% for the same period.

Grand Rapids's average FHA mortgage closing costs are $7,338.

The average rate for the prior week (2025-07-11) was 6.85% and one month ago for the week of 2025-06-13, the average rate was 6.91%.

The average rate one year ago was 7.07%.

For refis of the same type during the week of 2025-07-18, the average rate was 6.8%.

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

Grand Rapids 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 Grand Rapids level.

Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
UNITED WHOLESALE MORTGAGE, LLC 217 6.24% $12,167
QUICKEN LOANS, LLC 208 6.23% $11,621
LAKE MICHIGAN CREDIT UNION 90 6.25% $8,973
SUCCESS MORTGAGE PARTNERS, INC. 58 6.68% $12,089
FIRST COMMUNITY MORTGAGE, INC. 47 6.68% $10,845
Flagstar Bank, FSB 37 6.44% $9,777
FREEDOM MORTGAGE CORPORATION 33 6.38% $13,158
Fifth Third Bank 33 6.42% $8,237
Mercantile Bank of Michigan 32 6.61% $8,610
The Huntington National Bank 31 6.71% $7,245
CHURCHILL MORTGAGE CORPORATION 31 6.48% $12,917
GUILD MORTGAGE COMPANY 30 6.95% $11,989
MORTGAGE 1 INCORPORATED 30 6.90% $11,747
PENNYMAC LOAN SERVICES, LLC 28 6.09% $8,866
NORTHERN MORTGAGE SERVICES, LLC 26 6.32% $10,420
Northpointe Bank 26 6.36% $10,916
NEWREZ LLC 24 6.45% $9,966
MMS MORTGAGE SERVICES, LTD. 23 6.42% $8,284
UNION HOME MORTGAGE CORP. 22 6.77% $10,775
ARK-LA-TEX FINANCIAL SERVICES, LLC. 21 6.31% $9,495
VAN DYK MORTGAGE CORPORATION 20 6.78% $7,350
Carrington Mortgage Services, LLC 19 6.50% $12,996
AmeriHome Mortgage Company, LLC 17 6.72% $6,963
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 16 6.63% $10,465
AMERICAN PACIFIC MORTGAGE CORPORATION 16 6.76% $14,251
BM Real Estate Services, Inc. 15 6.87% $8,602
Mr. Cooper ( Nationstar Mortgage ) 14 6.63% $16,339
BROKER SOLUTIONS, INC. 13 6.95% $11,986
Equity Prime Mortgage LLC 13 6.98% $11,228
LOANDEPOT.COM, LLC 13 6.53% $9,414
MUTUAL OF OMAHA MORTGAGE, INC. 12 6.68% $15,236
LAKEVIEW LOAN SERVICING, LLC 12 6.30% $8,326
CROSSCOUNTRY MORTGAGE, LLC 11 6.61% $11,295
MICHIGAN MUTUAL, INC. 11 6.51% $11,681
The Dart Bank 10 6.26% $11,682
MICHIGAN FIRST CREDIT UNION 10 6.36% $9,143
Preston Home Loans Inc 9 7.21% $8,973
AMERICAN FINANCING CORPORATION 9 5.67% $14,203
TOP FLITE FINANCIAL, INC. 9 6.43% $11,805
Independent Bank 8 6.67% $5,784
GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 7 6.73% $9,265
HOMESIDE FINANCIAL, LLC 7 6.54% $10,816
FIRST COLONY MORTGAGE CORPORATION 7 6.46% $12,939
VILLAGE CAPITAL MORTGAGE 7 6.39% $7,114
MEMBER FIRST MORTGAGE, LLC 6 6.58% $10,685
CARDINAL FINANCIAL 6 6.46% $14,596
AMERICAN FINANCIAL NETWORK, INC. 6 7.00% $13,684
OCMBC, INC. 6 7.46% $11,674
Prosperity Home Mortgage, LLC 6 6.39% $12,002
AMERICAN FINANCIAL RESOURCES, INC. 6 6.83% $8,297
PLANET HOME LENDING, LLC 5 6.12% $8,732
MILEND, INC. 5 6.63% $13,089
UNITED 5 6.20% $8,832
JPMorgan Chase Bank 5 6.83% $6,823
Horizon Bank 5 6.30% $7,749
T2 FINANCIAL LLC 5 6.63% $12,305
AMERISAVE MORTGAGE CORPORATION 5 6.13% $14,639
PLAZA HOME MORTGAGE, INC. 5 6.70% $10,103
LEADERONE FINANCIAL CORPORATION 4 6.53% $8,449
Nations Lending Corporation 4 6.72% $11,336
Plains Commerce Bank 4 6.13% $13,284
PHH Mortgage Corporation 4 5.88% $9,091
UNITED MORTGAGE CORP 4 6.34% $14,575
RUOFF MORTGAGE COMPANY, INC. 3 6.13% $8,686
The Loan Store, Inc. 3 5.83% $10,840
AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 3 5.58% $18,421
CMG MORTGAGE, INC. 3 6.63% $10,262
Old National Bank 3 5.88% $8,705
MID AMERICA MORTGAGE, INC. 3 6.58% $8,533
SUN WEST MORTGAGE COMPANY, INC. 3 6.63% $8,189
Mortgage Research Center, LLC 2 6.75% $11,150
COMPASS MORTGAGE, INC. 2 6.25% $7,904
GUARANTEED RATE, INC. 2 6.25% $14,535
Paramount Residential Mortgage Group, Inc. 2 6.94% $7,796
Wells Fargo Bank 2 6.88% $8,190
ROYAL UNITED MORTGAGE LLC 2 6.88% $12,616
STOCKTON MORTGAGE CORPORATION 2 6.50% $11,161
The Federal Savings Bank 2 6.44% $8,948
AMERICAN PORTFOLIO MORTGAGE CORPORATION 2 6.56% $8,141
TOWNE MORTGAGE COMPANY 2 7.63% $6,679
GVC MORTGAGE, INC. 2 6.38% $14,473
ZILLOW HOME LOANS, LLC 2 6.69% $9,436
LOANPAL, LLC 2 5.25% $11,605
RELIANCE FIRST CAPITAL, LLC 1 7.25% $11,537
RESIDENTIAL BANCORP 1 6.49% $8,791
Residential Mortgage Solutions, Inc. 1 6.50% $17,129
Lakeview Community Capital, LLC 1 6.50% $5,844
BAY EQUITY LLC 1 5.75% $13,728
SOUTHWEST FUNDING, LP 1 7.75% $14,111
DELMAR FINANCIAL COMPANY 1 6.38% $7,096
First State Bank 1 7.99% $5,164
NETWORK CAPITAL FUNDING CORPORATION 1 6.13% $16,162
NATIONS RELIABLE LENDING, LLC 1 6.25% $8,122
NATIONS DIRECT MORTGAGE, LLC 1 7.13% $14,523
U.S. Bank 1 6.63% $9,995
LIBERTY HOME MORTGAGE CORPORATION 1 6.75% $4,693
MORTGAGE SOLUTIONS OF COLORADO, LLC 1 6.75% $9,485
HOMEBRIDGE FINANCIAL SERVICES, INC. 1 6.88% $4,314
Leaders Credit Union 1 6.75% $8,108
MORTGAGE CENTER L.C 1 7.13% $5,844
Barrington Bank & Trust Company, N.A. 1 6.25% $11,601
Washington Trust Bank 1 6.00% $8,893
OCEANSIDE MORTGAGE COMPANY 1 5.63% $3,003
PNC Bank 1 6.63% $7,977
POLARIS HOME FUNDING CORP. 1 6.63% $8,276
INSPIRE HOME LOANS INC. 1 4.50% $10,277
EVERETT FINANCIAL, INC. 1 7.13% $15,516
Associated Bank 1 6.38% $13,764
RANLIFE, INC. 1 5.25% $16,592

The top Grand Rapids FHA lender as defined by loan originations is UNITED WHOLESALE MORTGAGE, LLC, with 217 FHA loans originated. Their average total fees are $12,167, which is $547 higher than the next largest lender, QUICKEN LOANS, LLC.

The lowest fee Grand Rapids FHA lenders (with over 10 loans originated) are AmeriHome Mortgage Company, LLC ($6,963), The Huntington National Bank ($7,245), VAN DYK MORTGAGE CORPORATION ($7,350), Fifth Third Bank ($8,237) and MMS MORTGAGE SERVICES, LTD. ($8,284).

The lowest rate Grand Rapids FHA lenders (with over 10 loans originated) are PENNYMAC LOAN SERVICES, LLC (6.09%), QUICKEN LOANS, LLC (6.23%), UNITED WHOLESALE MORTGAGE, LLC (6.24%), LAKE MICHIGAN CREDIT UNION (6.25%) and The Dart Bank (6.26%).

Grand Rapids FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
GRAND RAPIDS-KENTWOOD, MI IONIA 2022 $420,680 $538,650 $651,050 $809,150
GRAND RAPIDS-KENTWOOD, MI KENT 2022 $420,680 $538,650 $651,050 $809,150
GRAND RAPIDS-KENTWOOD, MI MONTCALM 2022 $420,680 $538,650 $651,050 $809,150
GRAND RAPIDS-KENTWOOD, MI OTTAWA 2022 $420,680 $538,650 $651,050 $809,150
GRAND RAPIDS-KENTWOOD, MI IONIA 2023 $472,030 $604,400 $730,525 $907,900
GRAND RAPIDS-KENTWOOD, MI KENT 2023 $472,030 $604,400 $730,525 $907,900
GRAND RAPIDS-KENTWOOD, MI MONTCALM 2023 $472,030 $604,400 $730,525 $907,900
GRAND RAPIDS-KENTWOOD, MI OTTAWA 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).