Kalamazoo FHA Loan Rates, Closing Costs & Stats

KALAMAZOO-PORTAGE, 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.

Kalamazoo's 78 lenders originated 470 FHA loans during 2024. The total origination value was $106,580,000, with an average FHA loan value of $226,766.

Kalamazoo FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Kalamazoo averaged 0.15% for the week of 2025-06-20, compared to the national average (all FHA variants) of 0% for the same period.

Kalamazoo's average FHA mortgage closing costs are $6,865.

The average rate for the prior week (2025-06-13) was 6.83% and one month ago for the week of 2025-05-16, the average rate was 6.7%.

The average rate one year ago was 7.05%.

For refis of the same type during the week of 2025-06-20, the average rate was -0.05%.

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

Kalamazoo 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 Kalamazoo level.

Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
QUICKEN LOANS, LLC 79 6.37% $9,498
SUCCESS MORTGAGE PARTNERS, INC. 44 6.59% $11,715
UNITED WHOLESALE MORTGAGE, LLC 33 6.22% $10,902
Flagstar Bank, FSB 25 6.73% $8,075
GVC MORTGAGE, INC. 21 6.55% $10,081
UNION HOME MORTGAGE CORP. 14 6.79% $9,529
LAKE MICHIGAN CREDIT UNION 12 6.32% $8,537
FREEDOM MORTGAGE CORPORATION 11 6.47% $7,784
LOANDEPOT.COM, LLC 8 6.36% $8,355
FIRST COMMUNITY MORTGAGE, INC. 8 6.95% $8,734
BROKER SOLUTIONS, INC. 7 6.63% $10,577
Carrington Mortgage Services, LLC 7 6.41% $11,459
CONTOUR MORTGAGE CORPORATION 7 6.68% $7,899
ARK-LA-TEX FINANCIAL SERVICES, LLC. 7 6.66% $6,290
Fifth Third Bank 6 6.46% $6,679
RUOFF MORTGAGE COMPANY, INC. 5 6.70% $10,084
MICHIGAN MUTUAL, INC. 5 6.60% $8,232
Mr. Cooper ( Nationstar Mortgage ) 5 6.63% $12,031
PRIMELENDING, A PLAINSCAPITAL COMPANY 4 6.88% $15,121
PENNYMAC LOAN SERVICES, LLC 4 6.06% $7,738
MORTGAGE CENTER L.C 4 6.53% $11,973
NEWREZ LLC 4 6.06% $9,202
GUILD MORTGAGE COMPANY 4 6.69% $10,977
Horizon Bank 4 6.00% $8,770
SUMMIT HOME MORTGAGE, LLC 3 6.92% $8,976
Independent Bank 3 5.50% $15,451
CHURCHILL MORTGAGE CORPORATION 3 6.42% $12,354
PLANET HOME LENDING, LLC 3 6.38% $7,177
Prosperity Home Mortgage, LLC 3 6.04% $13,811
The Huntington National Bank 3 6.38% $6,253
PNC Bank 3 6.46% $7,421
AMERICAN FINANCIAL RESOURCES, INC. 3 6.96% $7,547
AMERISAVE MORTGAGE CORPORATION 3 6.42% $9,544
MORTGAGE 1 INCORPORATED 2 6.38% $9,456
ARBOR FINANCIAL CREDIT UNION 2 6.94% $7,322
Barrington Bank & Trust Company, N.A. 2 7.00% $8,094
CARDINAL FINANCIAL 2 7.75% $10,861
CROSSCOUNTRY MORTGAGE, LLC 2 7.19% $10,215
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 2 6.31% $7,949
GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 2 6.44% $7,664
GUARANTEED RATE, INC. 2 7.19% $7,680
Honor Credit Union 2 6.56% $5,291
LOANPAL, LLC 2 5.44% $10,115
Northpointe Bank 2 6.94% $10,670
ROSS MORTGAGE CORPORATION 2 6.69% $6,770
Texana Bank 2 6.06% $9,765
TOWNE MORTGAGE COMPANY 2 6.38% $9,275
University Bank 2 6.13% $6,989
VILLAGE CAPITAL MORTGAGE 2 5.87% $5,952
Washington Trust Bank 2 6.75% $5,321
Waterstone Mortgage Corporation 2 7.00% $9,736
PHH Mortgage Corporation 1 6.13% $13,724
MEMBER FIRST MORTGAGE, LLC 1 6.88% $12,423
PLAZA HOME MORTGAGE, INC. 1 6.25% $12,009
LAKEVIEW LOAN SERVICING, LLC 1 6.25% $8,374
INSPIRE HOME LOANS INC. 1 5.88% $8,331
HOMESIDE FINANCIAL, LLC 1 6.25% $15,246
HOMEBRIDGE FINANCIAL SERVICES, INC. 1 5.99% $4,423
Willamette Valley Bank 1 7.13% $11,644
Equity Prime Mortgage LLC 1 6.75% $10,356
Sierra Pacific Mortgage Company, Inc. 1 5.50% $11,042
STAUNTON FINANCIAL, INC. 1 6.63% $8,961
Comerica Bank 1 6.63% $5,739
Citizens Bank 1 6.13% $8,660
VAN DYK MORTGAGE CORPORATION 1 6.38% $7,431
BLG HOLDINGS, INC. 1 6.25% $9,201
TOP FLITE FINANCIAL, INC. 1 6.63% $14,675
ZILLOW HOME LOANS, LLC 1 6.25% $7,415
AmeriHome Mortgage Company, LLC 1 6.63% $4,686
UNITED MORTGAGE CORP 1 6.25% $10,114
M&T Bank 1 4.88% $10,273
MUTUAL OF OMAHA MORTGAGE, INC. 1 6.75% $23,745
Mortgage Research Center, LLC 1 6.75% $4,802
NORTHERN MORTGAGE SERVICES, LLC 1 6.13% $725
AMERICAN FINANCING CORPORATION 1 5.63% $10,990
OCEANSIDE MORTGAGE COMPANY 1 6.50% $5,440
OCMBC, INC. 1 7.75% $10,942
AMERICAN FINANCIAL NETWORK, INC. 1 7.13% $13,902

The top Kalamazoo FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 79 FHA loans originated. Their average total fees are $9,498, which is $2,217 lower than the next largest lender, SUCCESS MORTGAGE PARTNERS, INC..

The lowest fee Kalamazoo FHA lenders (with over 10 loans originated) are FREEDOM MORTGAGE CORPORATION ($7,784), Flagstar Bank, FSB ($8,075), LAKE MICHIGAN CREDIT UNION ($8,537), QUICKEN LOANS, LLC ($9,498) and UNION HOME MORTGAGE CORP. ($9,529).

The lowest rate Kalamazoo FHA lenders (with over 10 loans originated) are UNITED WHOLESALE MORTGAGE, LLC (6.22%), LAKE MICHIGAN CREDIT UNION (6.32%), QUICKEN LOANS, LLC (6.37%), FREEDOM MORTGAGE CORPORATION (6.47%) and GVC MORTGAGE, INC. (6.55%).

Kalamazoo FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
KALAMAZOO-PORTAGE, MI KALAMAZOO 2022 $420,680 $538,650 $651,050 $809,150
KALAMAZOO-PORTAGE, MI KALAMAZOO 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).