Michigan City FHA Loans

MICHIGAN CITY-LA PORTE, IN

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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.

    Michigan City's 81 lenders originated 618 FHA loans during 2021. The total origination value was $93,290,000, with an average FHA loan value of $150,955.

    Michigan City FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Michigan City averaged 5.3% for the week of 2022-05-20, compared to the national average (all FHA variants) of 5.352% for the same period.

    The average rate for the prior week (2022-05-13) was 5.41% and one month ago for the week of 2022-04-15, the average rate was 5%.

    The average rate one year ago was 3.47%.

    For refis of the same type during the week of 2022-05-20, the average rate was 5.05%.

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

    Michigan City FHA Loan Lenders by Rates & Fees

    The below table looks at the average fees and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Michigan City level.

    Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
    QUICKEN LOANS, LLC 81 2.79% $5,273
    HALLMARK HOME MORTGAGE, LLC 37 3.44% $6,896
    FIRST CENTENNIAL MORTGAGE CORPORATION 25 3.33% $5,823
    Centier Bank 23 3.17% $4,430
    DIAMOND RESIDENTIAL MORTGAGE CORPORATION 21 3.52% $6,433
    Horizon Bank 21 3.23% $4,621
    FREEDOM MORTGAGE CORPORATION 20 2.94% $3,979
    CALIBER HOME LOANS, INC. 18 2.86% $5,319
    Bank of England 16 3.59% $7,230
    CROSSCOUNTRY MORTGAGE, LLC 15 3.27% $6,535
    UNION HOME MORTGAGE CORP. 14 3.48% $6,144
    LAKEVIEW LOAN SERVICING, LLC 13 3.21% $3,709
    Mr. Cooper ( Nationstar Mortgage ) 13 3.39% $2,998
    RUOFF MORTGAGE COMPANY, INC. 13 3.32% $4,970
    Fifth Third Bank 11 3.00% $5,174
    PENNYMAC LOAN SERVICES, LLC 10 3.34% $2,917
    CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 10 3.53% $6,858
    VILLAGE CAPITAL & INVESTMENT LLC 10 3.16% $1,904
    GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 9 2.94% $6,054
    LOANDEPOT.COM, LLC 9 3.24% $6,382
    NEWREZ LLC 9 3.06% $3,805
    GUARANTEED RATE, INC. 8 3.25% $6,608
    AMERIFIRST FINANCIAL CORPORATION 6 3.77% $6,386
    PRIMELENDING, A PLAINSCAPITAL COMPANY 5 3.63% $6,766
    UNITED WHOLESALE MORTGAGE, LLC 5 2.80% $5,964
    GVC MORTGAGE, INC. 5 3.30% $5,906
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 5 3.25% $4,763
    HOMEBRIDGE FINANCIAL SERVICES, INC. 4 2.75% $4,355
    Hometown Lenders, Inc. 4 3.38% $7,846
    AMERICAN FINANCIAL RESOURCES, INC. 4 3.38% $6,756
    PLANET HOME LENDING, LLC 4 2.81% $2,693
    BROKER SOLUTIONS, INC. 3 3.25% $4,684
    AMERISAVE MORTGAGE CORPORATION 3 3.17% $8,410
    Paramount Residential Mortgage Group, Inc. 3 2.79% $6,037
    Citizens Bank 3 3.21% $6,372
    Equity Prime Mortgage LLC 3 3.54% $4,797
    1st Source Bank 3 3.04% $5,126
    Carrington Mortgage Services, LLC 3 3.46% $5,464
    HOME POINT FINANCIAL CORPORATION 3 3.58% $4,683
    CELEBRITY HOME LOANS, LLC 2 3.19% $7,753
    DAS Acquisition Company, LLC 2 3.31% $5,449
    DIRECT MORTGAGE LOANS, LLC 2 4.19% $7,794
    First Guaranty Mortgage Corporation 2 3.00% $5,241
    Flagstar Bank, FSB 2 3.25% $5,540
    InterContinental Capital Group, Inc 2 2.56% $6,279
    JPMorgan Chase Bank 2 3.19% $4,564
    AMERICAN PORTFOLIO MORTGAGE CORPORATION 2 2.94% $5,792
    LEADERONE FINANCIAL CORPORATION 2 3.38% $4,294
    Nations Lending Corporation 2 3.38% $10,434
    PROPER RATE, LLC 2 3.13% $5,693
    AMERICAN FINANCIAL NETWORK, INC. 2 3.19% $9,415
    ROYAL UNITED MORTGAGE LLC 2 3.50% $6,220
    Servion, Inc. 2 2.81% $5,377
    Mortgage Assurance Inc. 1 3.25% $2,907
    INLAND BANK & TRUST 1 2.88% $6,418
    SUN WEST MORTGAGE COMPANY, INC. 1 2.88% $7,317
    Neighborhood Loans, Inc. 1 3.25% $4,818
    AmeriHome Mortgage Company, LLC 1 3.13% $5,155
    OCEANSIDE MORTGAGE COMPANY 1 2.49% $1,472
    GENEVA FINANCIAL, LLC 1 3.25% $9,887
    1ST SIGNATURE LENDING, LLC 1 2.75% $6,717
    Plains Commerce Bank 1 3.38% $5,422
    Bank of America 1 4.00% $4,802
    PLAZA HOME MORTGAGE, INC. 1 2.75% $6,705
    PNC Bank 1 3.00% $4,757
    PRIMARY RESIDENTIAL MORTGAGE, INC. 1 3.13% $10,604
    Barrington Bank & Trust Company, N.A. 1 3.75% $6,565
    TOWNE MORTGAGE COMPANY 1 3.00% $4,622
    EMBRACE HOME LOANS, INC. 1 3.50% $7,532
    RELIANCE FIRST CAPITAL, LLC 1 2.38% $6,152
    DRAPER AND KRAMER MORTGAGE CORP. 1 3.13% $5,848
    ACADEMY MORTGAGE CORPORATION 1 3.88% $10,350
    COMPASS MORTGAGE, INC. 1 3.00% $7,470
    SOVEREIGN LENDING GROUP INCORPORATED 1 3.25% $6,742
    LAKE MORTGAGE COMPANY INC 1 3.00% $5,065
    STEARNS LENDING, LLC 1 3.25% $2,977
    SUCCESS MORTGAGE PARTNERS, INC. 1 3.75% $12,778
    JAMES B. NUTTER & COMPANY 1 3.38% $2,191
    MEMBER FIRST MORTGAGE, LLC 1 3.25% $5,475
    MIDLAND MORTGAGE CORPORATION 1 3.75% $3,763
    MORIA DEVELOPMENT, INC. 1 3.25% $5,425

    The top Michigan City FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 81 FHA loans originated. Their average total fees are $5,273, which is $1,623 lower than the next largest lender, HALLMARK HOME MORTGAGE, LLC.

    The lowest fee Michigan City FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL & INVESTMENT LLC ($1,904), PENNYMAC LOAN SERVICES, LLC ($2,917), Mr. Cooper ( Nationstar Mortgage ) ($2,998), LAKEVIEW LOAN SERVICING, LLC ($3,709) and FREEDOM MORTGAGE CORPORATION ($3,979).

    The lowest rate Michigan City FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (2.79%), CALIBER HOME LOANS, INC. (2.86%), FREEDOM MORTGAGE CORPORATION (2.94%), Fifth Third Bank (3.00%) and VILLAGE CAPITAL & INVESTMENT LLC (3.16%).

    Michigan City FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    MICHIGAN CITY-LA PORTE, IN LAPORTE 2022 $420,680 $538,650 $651,050 $809,150

    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).