Grand Rapids FHA Loan Rates, Closing Costs & Stats

GRAND RAPIDS-KENTWOOD, MI

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    • 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).