Michigan City FHA Loans

MICHIGAN CITY-LA PORTE, IN

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).