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 126 lenders originated 3,513 FHA loans during 2021. The total origination value was $689,135,000, with an average FHA loan value of $196,167.

Grand Rapids FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Grand Rapids averaged 5.99% for the week of 2023-01-27, compared to the national average (all FHA variants) of 6.186% for the same period.

Grand Rapids's average FHA mortgage closing costs are $6,198.

The average rate for the prior week (2023-01-20) was 6.16% and one month ago for the week of 2022-12-23, the average rate was 6.45%.

The average rate one year ago was 3.94%.

For refis of the same type during the week of 2023-01-27, the average rate was 5.92%.

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 2021 Avg. 30yFix Rate 2021 Avg. Closing Costs
QUICKEN LOANS, LLC 369 2.73% $5,803
Neighborhood Loans, Inc. 188 3.33% $6,843
MORTGAGE 1 INCORPORATED 144 3.61% $8,670
UNITED WHOLESALE MORTGAGE, LLC 138 2.85% $6,714
LAKE MICHIGAN CREDIT UNION 135 2.84% $6,652
SUCCESS MORTGAGE PARTNERS, INC. 126 3.41% $9,362
FINANCE OF AMERICA MORTGAGE LLC 118 3.19% $7,453
VAN DYK MORTGAGE CORPORATION 104 3.39% $6,472
CALIBER HOME LOANS, INC. 103 2.93% $5,688
UNION HOME MORTGAGE CORP. 84 3.22% $7,002
LAKEVIEW LOAN SERVICING, LLC 83 3.04% $4,297
The Huntington National Bank 82 3.07% $6,588
FREEDOM MORTGAGE CORPORATION 76 2.95% $3,681
PRIMELENDING, A PLAINSCAPITAL COMPANY 66 3.43% $6,913
Mr. Cooper ( Nationstar Mortgage ) 65 3.27% $4,715
PENNYMAC LOAN SERVICES, LLC 57 3.14% $3,976
INLANTA MORTGAGE, INC. 46 3.40% $6,976
Northpointe Bank 45 3.18% $7,214
Fifth Third Bank 44 3.15% $7,141
Carrington Mortgage Services, LLC 44 3.56% $7,424
NORTHERN MORTGAGE SERVICES, LLC 41 3.17% $6,383
ARK-LA-TEX FINANCIAL SERVICES, LLC. 39 3.34% $7,274
VILLAGE CAPITAL MORTGAGE 37 3.08% $2,236
Hometown Lenders, Inc. 33 3.34% $8,160
NEWREZ LLC 33 3.13% $5,686
MMS MORTGAGE SERVICES, LTD. 30 3.25% $5,018
AmeriHome Mortgage Company, LLC 28 3.15% $3,874
TOP FLITE FINANCIAL, INC. 28 3.42% $10,614
RUOFF MORTGAGE COMPANY, INC. 26 3.26% $6,542
LOANDEPOT.COM, LLC 26 3.10% $7,672
Independent Bank 25 3.24% $5,812
Flagstar Bank, FSB 24 2.75% $6,717
HOMEBRIDGE FINANCIAL SERVICES, INC. 24 2.66% $5,277
GUARANTEED RATE, INC. 22 3.05% $6,493
CHURCHILL MORTGAGE CORPORATION 20 3.28% $7,436
Mercantile Bank of Michigan 19 3.01% $6,338
BROKER SOLUTIONS, INC. 18 3.09% $6,776
GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 18 3.39% $7,392
MICHIGAN MUTUAL, INC. 17 3.28% $7,562
GVC MORTGAGE, INC. 16 3.38% $7,619
HOME POINT FINANCIAL CORPORATION 16 2.88% $5,163
First Guaranty Mortgage Corporation 15 3.02% $4,918
AMERICAN FINANCIAL RESOURCES, INC. 15 3.58% $6,652
Lakeview Community Capital, LLC 14 3.03% $4,057
AMERIFIRST FINANCIAL CORPORATION 14 3.28% $7,008
STOCKTON MORTGAGE CORPORATION 13 3.69% $7,649
CROSSCOUNTRY MORTGAGE, LLC 13 3.29% $7,757
AMERISAVE MORTGAGE CORPORATION 13 3.01% $8,429
TOWNE MORTGAGE COMPANY 13 3.18% $7,865
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 13 3.27% $7,247
ENVOY MORTGAGE, LTD 12 3.39% $7,419
BLG HOLDINGS, INC. 12 3.32% $6,473
MUTUAL OF OMAHA MORTGAGE, INC. 12 3.34% $7,708
PLANET HOME LENDING, LLC 11 2.80% $3,971
T2 FINANCIAL LLC 11 3.26% $8,314
MICHIGAN FIRST CREDIT UNION 10 3.00% $6,450
JPMorgan Chase Bank 9 2.83% $5,402
Nations Lending Corporation 9 3.25% $10,547
Paramount Residential Mortgage Group, Inc. 8 3.28% $7,636
AMERICAN FINANCING CORPORATION 7 2.86% $5,485
TCF National Bank 7 2.77% $6,035
MEMBER FIRST MORTGAGE, LLC 7 3.38% $6,707
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 7 3.00% $7,685
OCEANSIDE MORTGAGE COMPANY 6 3.14% $2,720
Old National Bank 6 2.60% $7,814
POLARIS HOME FUNDING CORP. 6 3.04% $8,074
MID AMERICA MORTGAGE, INC. 5 3.50% $5,492
InterContinental Capital Group, Inc 5 3.00% $7,838
Equity Prime Mortgage LLC 4 3.50% $7,067
ChoiceOne Bank 4 3.50% $6,689
ACADEMY MORTGAGE CORPORATION 4 3.50% $5,757
PLAZA HOME MORTGAGE, INC. 4 3.38% $5,512
EMBRACE HOME LOANS, INC. 4 3.21% $7,500
J. VIRGIL, INC. 4 3.22% $10,481
KELLER MORTGAGE, LLC 3 2.92% $5,252
ZILLOW HOME LOANS, LLC 3 3.17% $5,144
PRIMARY RESIDENTIAL MORTGAGE, INC. 3 3.46% $6,141
PNC Bank 3 2.83% $4,468
MORTGAGE CENTER L.C 3 3.21% $6,335
HOMESIDE FINANCIAL, LLC 3 3.25% $6,176
BETTER MORTGAGE CORPORATION 2 3.06% $6,227
UNITED SECURITY FINANCIAL CORP 2 2.50% $5,217
CHERRY CREEK MORTGAGE, LLC 2 3.50% $2,185
ADVISORS CAPITAL, INC. 2 2.88% $6,005
PHH Mortgage Corporation 2 2.75% $9,612
The Dart Bank 2 2.88% $8,170
The Federal Savings Bank 2 3.06% $10,495
Comerica Bank 2 2.88% $3,995
Ixonia Bank 2 3.44% $7,303
ROYAL UNITED MORTGAGE LLC 2 3.38% $9,901
HOMESITE MORTGAGE, LLC 1 2.63% $4,774
HOMESTEAD FUNDING CORP. 1 2.25% $2,819
JAMES B. NUTTER & COMPANY 1 3.00% $4,559
Goldwater Bank, N.A. 1 3.63% $6,353
First Savings Bank 1 4.25% $9,479
LEADERONE FINANCIAL CORPORATION 1 3.75% $7,466
FIRST HERITAGE FINANCIAL, LLC 1 3.50% $6,364
Low VA Rates, LLC 1 3.00% $6,345
Magnolia Bank 1 4.25% $7,789
FBC MORTGAGE, LLC 1 3.13% $4,533
MORTGAGE ACCESS CORP. 1 2.75% $10,663
DRAPER AND KRAMER MORTGAGE CORP. 1 3.25% $7,402
COMPASS MORTGAGE, INC. 1 3.00% $6,790
NATIONS DIRECT MORTGAGE, LLC 1 3.99% $5,994
NATIONS RELIABLE LENDING, LLC 1 3.25% $9,699
COMMUNITY MORTGAGE FUNDING, LLC 1 2.50% $8,461
North American Savings Bank, F.S.B. 1 2.88% $5,320
Colten Mortgage, LLC 1 3.75% $6,250
CMG MORTGAGE, INC. 1 2.75% $7,223
NP, Inc. 1 3.38% $6,219
ON Q FINANCIAL, INC. 1 4.25% $5,365
RELIANCE FIRST CAPITAL, LLC 1 2.88% $11,163
RESIDENTIAL BANCORP. 1 2.75% $7,188
BELEM SERVICING LLC 1 2.75% $10,534
Sierra Pacific Mortgage Company, Inc. 1 2.50% $9,935
STAUNTON FINANCIAL, INC. 1 2.88% $9,681
STEARNS LENDING, LLC 1 2.63% $11,198
BECKAM FUNDING CORP. 1 4.25% $6,823
BAYSHORE MORTGAGE FUNDING, LLC 1 3.75% $4,316
SUN WEST MORTGAGE COMPANY, INC. 1 2.88% $7,576
Barrington Bank & Trust Company, N.A. 1 3.25% $12,214
Bank of England 1 3.88% $7,096
Bank of America 1 2.50% $3,479
AmRes Corporation 1 3.25% $11,809
AMERICAN PACIFIC MORTGAGE CORPORATION 1 3.00% $5,881
UNIVERSITY LENDING GROUP, LLC 1 3.38% $9,372

The top Grand Rapids FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 369 FHA loans originated. Their average total fees are $5,803, which is $1,040 lower than the next largest lender, Neighborhood Loans, Inc..

The lowest fee Grand Rapids FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL MORTGAGE ($2,236), FREEDOM MORTGAGE CORPORATION ($3,681), AmeriHome Mortgage Company, LLC ($3,874), PLANET HOME LENDING, LLC ($3,971) and PENNYMAC LOAN SERVICES, LLC ($3,976).

The lowest rate Grand Rapids FHA lenders (with over 10 loans originated) are HOMEBRIDGE FINANCIAL SERVICES, INC. (2.66%), QUICKEN LOANS, LLC (2.73%), Flagstar Bank, FSB (2.75%), PLANET HOME LENDING, LLC (2.80%) and LAKE MICHIGAN CREDIT UNION (2.84%).

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

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Grand Rapids (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Price (YoY Change) Average Listing Price (YoY) MSA/US Median Price Ratio Active Listings
2018-01-01 $252,400 (-1.5%) $313,936 (-14.9%) 0.94 1,849
2018-02-01 $261,150 (-3.8%) $327,838 (-13.1%) 0.95 1,689
2018-03-01 $269,900 (-4.5%) $339,520 (-13.0%) 0.95 1,671
2018-04-01 $279,125 (-0.3%) $352,579 (-4.4%) 0.95 1,729
2018-05-01 $279,900 (5.8%) $353,481 (4.3%) 0.93 1,909
2018-06-01 $279,900 (10.9%) $352,517 (8.7%) 0.93 2,226
2018-07-01 $277,250 (11.4%) $346,190 (9.4%) 0.93 2,387
2018-08-01 $269,900 (11.3%) $340,680 (10.4%) 0.90 2,708
2018-09-01 $269,900 (12.5%) $336,858 (9.7%) 0.91 2,767
2018-10-01 $272,425 (11.2%) $340,388 (10.2%) 0.92 2,741
2018-11-01 $269,900 (12.5%) $335,424 (9.3%) 0.91 2,653
2018-12-01 $274,900 (14.5%) $332,643 (8.8%) 0.95 2,404
2019-01-01 $274,950 (8.9%) $330,185 (5.2%) 0.95 2,135
2019-02-01 $279,950 (7.2%) $337,224 (2.9%) 0.95 1,960
2019-03-01 $286,429 (6.1%) $351,369 (3.5%) 0.94 1,954
2019-04-01 $296,538 (6.2%) $370,039 (5.0%) 0.94 2,034
2019-05-01 $294,625 (5.3%) $371,339 (5.1%) 0.92 2,158
2019-06-01 $291,689 (4.2%) $369,427 (4.8%) 0.91 2,381
2019-07-01 $290,794 (4.9%) $365,586 (5.6%) 0.91 2,592
2019-08-01 $284,445 (5.4%) $358,622 (5.3%) 0.90 2,682
2019-09-01 $276,264 (2.4%) $349,779 (3.8%) 0.88 2,793
2019-10-01 $269,900 (-0.9%) $343,588 (0.9%) 0.87 2,849
2019-11-01 $273,950 (1.5%) $344,800 (2.8%) 0.90 2,603
2019-12-01 $274,850 (0.0%) $343,434 (3.2%) 0.92 2,273
2020-01-01 $282,400 (2.7%) $345,717 (4.7%) 0.94 1,958
2020-02-01 $299,900 (7.1%) $370,598 (9.9%) 0.98 1,807
2020-03-01 $299,900 (4.7%) $374,034 (6.5%) 0.94 1,749
2020-04-01 $308,575 (4.1%) $380,424 (2.8%) 0.97 1,755
2020-05-01 $315,000 (6.9%) $397,639 (7.1%) 0.96 1,950
2020-06-01 $314,900 (8.0%) $409,603 (10.9%) 0.93 1,795
2020-07-01 $309,625 (6.5%) $406,180 (11.1%) 0.90 1,685
2020-08-01 $309,000 (8.6%) $399,269 (11.3%) 0.89 1,612
2020-09-01 $304,425 (10.2%) $401,576 (14.8%) 0.87 1,469
2020-10-01 $290,000 (7.5%) $387,657 (12.8%) 0.83 1,462
2020-11-01 $298,949 (9.1%) $394,390 (14.4%) 0.87 1,326
2020-12-01 $299,925 (9.1%) $396,320 (15.4%) 0.89 1,106
2021-01-01 $304,900 (8.0%) $396,828 (14.8%) 0.91 906
2021-02-01 $314,463 (4.9%) $416,299 (12.3%) 0.91 772
2021-03-01 $310,000 (3.4%) $414,859 (10.9%) 0.88 764
2021-04-01 $309,850 (0.4%) $423,714 (11.4%) 0.84 711
2021-05-01 $310,000 (-1.6%) $434,395 (9.2%) 0.82 745
2021-06-01 $313,950 (-0.3%) $434,595 (6.1%) 0.83 906
2021-07-01 $303,200 (-2.1%) $437,434 (7.7%) 0.80 1,037
2021-08-01 $304,950 (-1.3%) $435,800 (9.2%) 0.81 1,112
2021-09-01 $306,175 (0.6%) $424,057 (5.6%) 0.82 1,142
2021-10-01 $305,000 (5.2%) $414,944 (7.0%) 0.81 1,121
2021-11-01 $314,950 (5.4%) $425,282 (7.8%) 0.84 981
2021-12-01 $310,000 (3.4%) $423,037 (6.7%) 0.84 785
2022-01-01 $330,700 (8.5%) $448,017 (12.9%) 0.89 612
2022-02-01 $342,950 (9.1%) $450,482 (8.2%) 0.89 545
2022-03-01 $339,950 (9.7%) $448,783 (8.2%) 0.85 602
2022-04-01 $349,900 (12.9%) $449,902 (6.2%) 0.84 658
2022-05-01 $359,950 (16.1%) $461,696 (6.3%) 0.82 904
2022-06-01 $375,000 (19.5%) $462,671 (6.5%) 0.84 1,174
2022-07-01 $375,000 (23.7%) $462,609 (5.8%) 0.85 1,402
2022-08-01 $377,400 (23.8%) $464,876 (6.7%) 0.87 1,442
2022-09-01 $364,800 (19.2%) $452,973 (6.8%) 0.85 1,436
2022-10-01 $355,000 (16.4%) $445,600 (7.4%) 0.84 1,441
2022-11-01 $358,310 (13.8%) $437,919 (3.0%) 0.86 1,410
2022-12-01 $359,900 (16.1%) $431,478 (2.0%) 0.90 1,188
Grand Rapids's median listing price for 2022-12-01 was $359,900, a difference of $49,900 (16.1%) versus the prior year and $1,590 versus the prior month.

Grand Rapids's median listing price comes in at 90% of the national average.

Grand Rapids's average listing price for 2022-12-01 was $431,478, a difference of $8,441 (2.0%) versus the prior year and $-6,441 versus the prior month.

For the 2022-12-01 period, Grand Rapids had 1,188 MLS listings, a difference of -222 listings (-16%) versus the prior month and 403 listings (51%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Grand Rapids (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 74 days 2,036 sqft
2018-02-01 62 days 2,040 sqft
2018-03-01 39 days 2,060 sqft
2018-04-01 36 days 2,084 sqft
2018-05-01 28 days 2,113 sqft
2018-06-01 29 days 2,106 sqft
2018-07-01 36 days 2,131 sqft
2018-08-01 34 days 2,077 sqft
2018-09-01 42 days 2,050 sqft
2018-10-01 47 days 2,051 sqft
2018-11-01 52 days 2,040 sqft
2018-12-01 65 days 2,021 sqft
2019-01-01 73 days 1,990 sqft
2019-02-01 73 days 2,010 sqft
2019-03-01 53 days 2,032 sqft
2019-04-01 37 days 2,066 sqft
2019-05-01 30 days 2,082 sqft
2019-06-01 32 days 2,102 sqft
2019-07-01 36 days 2,113 sqft
2019-08-01 38 days 2,090 sqft
2019-09-01 40 days 2,055 sqft
2019-10-01 43 days 2,030 sqft
2019-11-01 52 days 2,002 sqft
2019-12-01 67 days 1,957 sqft
2020-01-01 73 days 1,946 sqft
2020-02-01 66 days 2,005 sqft
2020-03-01 46 days 2,023 sqft
2020-04-01 55 days 2,046 sqft
2020-05-01 58 days 2,072 sqft
2020-06-01 41 days 2,063 sqft
2020-07-01 45 days 2,057 sqft
2020-08-01 43 days 2,056 sqft
2020-09-01 42 days 2,034 sqft
2020-10-01 41 days 1,956 sqft
2020-11-01 44 days 1,918 sqft
2020-12-01 57 days 1,888 sqft
2021-01-01 61 days 1,870 sqft
2021-02-01 42 days 1,897 sqft
2021-03-01 36 days 1,912 sqft
2021-04-01 34 days 1,922 sqft
2021-05-01 32 days 1,940 sqft
2021-06-01 28 days 1,963 sqft
2021-07-01 33 days 1,964 sqft
2021-08-01 32 days 1,941 sqft
2021-09-01 36 days 1,921 sqft
2021-10-01 36 days 1,857 sqft
2021-11-01 40 days 1,872 sqft
2021-12-01 48 days 1,845 sqft
2022-01-01 53 days 1,870 sqft
2022-02-01 37 days 1,880 sqft
2022-03-01 31 days 1,864 sqft
2022-04-01 26 days 1,944 sqft
2022-05-01 21 days 1,995 sqft
2022-06-01 24 days 2,028 sqft
2022-07-01 30 days 2,056 sqft
2022-08-01 35 days 2,055 sqft
2022-09-01 38 days 2,010 sqft
2022-10-01 39 days 2,007 sqft
2022-11-01 43 days 1,968 sqft
2022-12-01 58 days 1,952 sqft
Grand Rapids's median listing age (time on market) for 2022-12-01 was 58 days. This is 22% longer than the same period one year ago.

Grand Rapids's median square footage for active listings during the 2022-12-01 period was 1,952 sqft. One year prior, the average listing was 1,845 sqft.

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).