Grand Rapids FHA Loan Rates, Closing Costs & Stats

Grand Rapids, MN

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 29 lenders originated 83 FHA loans during 2022. The total origination value was $14,115,000, with an average FHA loan value of $170,060.

Grand Rapids FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Grand Rapids averaged 6.41% for the week of 2024-03-01, compared to the national average (all FHA variants) of 6.688% for the same period.

Grand Rapids's average FHA mortgage closing costs are $6,907.

The average rate for the prior week (2024-02-23) was 6.4% and one month ago for the week of 2024-01-26, the average rate was 6.5%.

The average rate one year ago was 6.33%.

For refis of the same type during the week of 2024-03-01, the average rate was 6.69%.

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 2022 Avg. 30yFix Rate 2022 Avg. Closing Costs
PREMIER MORTGAGE RESOURCES, L.L.C. 11 5.07% $9,809
CROSSCOUNTRY MORTGAGE, LLC 11 5.93% $8,143
QUICKEN LOANS, LLC 7 4.61% $8,388
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 5 6.18% $6,937
MANN FINANCIAL INC. 5 4.98% $7,581
PENNYMAC LOAN SERVICES, LLC 4 4.66% $8,757
LOANDEPOT.COM, LLC 4 4.72% $9,960
Wells Fargo Bank 3 4.00% $5,308
Lend Smart Mortgage, LLC 2 5.06% $11,957
EVERETT FINANCIAL, INC. 2 4.31% $5,465
Mr. Cooper ( Nationstar Mortgage ) 2 5.31% $17,642
American National Bank 1 5.50% $5,641
Nations Lending Corporation 1 5.75% $8,370
NEWREZ LLC 1 4.25% $6,719
Northpointe Bank 1 5.25% $6,524
PRIMARY RESIDENTIAL MORTGAGE, INC. 1 3.25% $8,805
UNITED WHOLESALE MORTGAGE, LLC 1 4.13% $5,816
U.S. Bank 1 5.25% $7,285
HOMESIDE FINANCIAL, LLC 1 6.13% $9,701
AMERISAVE MORTGAGE CORPORATION 1 4.25% $7,457
BROKER SOLUTIONS, INC. 1 4.60% $9,419
Cambria Financial Group, LLC 1 5.25% $10,818
CARDINAL FINANCIAL 1 6.13% $8,041
CRESCENT MORTGAGE COMPANY 1 5.25% $7,088
First Western Bank & Trust 1 5.50% $7,961
Flagstar Bank, FSB 1 6.75% $7,602
FREEDOM MORTGAGE CORPORATION 1 3.25% $3,885
HANCOCK MORTGAGE PARTNERS, LLC 1 3.63% $5,381
HOME POINT FINANCIAL CORPORATION 1 3.88% $4,656

The top Grand Rapids FHA lender as defined by loan originations is PREMIER MORTGAGE RESOURCES, L.L.C., with 11 FHA loans originated. Their average total fees are $9,809, which is $1,666 higher than the next largest lender, CROSSCOUNTRY MORTGAGE, LLC.

The lowest fee Grand Rapids FHA lenders (with over 10 loans originated) are CROSSCOUNTRY MORTGAGE, LLC ($8,143), PREMIER MORTGAGE RESOURCES, L.L.C. ($9,809), .

The lowest rate Grand Rapids FHA lenders (with over 10 loans originated) are PREMIER MORTGAGE RESOURCES, L.L.C. (5.07%), CROSSCOUNTRY MORTGAGE, LLC (5.93%), .

Grand Rapids FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
GRAND RAPIDS, MN ITASCA 2022 $420,680 $538,650 $651,050 $809,150
GRAND RAPIDS, MN ITASCA 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).