Traverse City FHA Loan Rates, Closing Costs & Stats

Traverse City, 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.

Traverse City's 49 lenders originated 219 FHA loans during 2023. The total origination value was $51,605,000, with an average FHA loan value of $235,639.

Traverse City FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Traverse City averaged 7% for the week of 2024-06-14, compared to the national average (all FHA variants) of 6.712% for the same period.

Traverse City's average FHA mortgage closing costs are $7,400.

The average rate for the prior week (2024-06-07) was 7.09% and one month ago for the week of 2024-05-10, the average rate was 6.98%.

The average rate one year ago was 6.93%.

For refis of the same type during the week of 2024-06-14, the average rate was 7.95%.

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

Traverse City 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 Traverse City level.

Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
UNITED WHOLESALE MORTGAGE, LLC 44 6.65% $10,763
QUICKEN LOANS, LLC 30 6.20% $10,820
CALIBER HOME LOANS, INC. 14 6.31% $10,490
NEWREZ LLC 8 7.03% $10,456
FREEDOM MORTGAGE CORPORATION 7 7.04% $12,460
UNION HOME MORTGAGE CORP. 7 6.25% $8,373
The Huntington National Bank 6 6.96% $6,852
Neighborhood Loans, Inc. 5 6.75% $10,599
BROKER SOLUTIONS, INC. 5 6.75% $10,874
ARK-LA-TEX FINANCIAL SERVICES, LLC. 4 6.84% $11,346
CARDINAL FINANCIAL 4 7.03% $8,964
LAKE MICHIGAN CREDIT UNION 4 6.84% $7,421
Mr. Cooper ( Nationstar Mortgage ) 4 6.34% $19,841
LOANDEPOT.COM, LLC 4 5.96% $14,630
GUARANTEED RATE, INC. 3 6.79% $13,410
LAKEVIEW LOAN SERVICING, LLC 3 6.25% $10,451
T2 FINANCIAL LLC 3 6.71% $15,243
AMERICAN FINANCIAL NETWORK, INC. 2 7.38% $8,913
AMERISAVE MORTGAGE CORPORATION 2 6.13% $12,879
Carrington Mortgage Services, LLC 2 6.63% $11,646
J. VIRGIL, INC. 2 6.88% $15,894
MEMBER FIRST MORTGAGE, LLC 2 6.50% $4,463
MICHIGAN MUTUAL, INC. 2 6.81% $8,535
STAUNTON FINANCIAL, INC. 2 6.69% $8,588
STOCKTON MORTGAGE CORPORATION 2 6.63% $11,997
LIBERTY HOME MORTGAGE CORPORATION 1 7.13% $16,820
First Federal Bank 1 5.13% $15,211
Chickasaw Community Bank 1 6.50% $8,670
Mercantile Bank of Michigan 1 6.63% $9,349
AmeriHome Mortgage Company, LLC 1 5.75% $13,496
MICHIGAN SCHOOLS AND GOVERNMENT 1 5.75% $8,789
MORTGAGE CENTER L.C 1 7.13% $8,697
Fifth Third Bank 1 7.50% $6,598
Nations Lending Corporation 1 6.25% $9,714
NBKC BANK 1 6.13% $5,737
EVERETT FINANCIAL, INC. 1 6.63% $9,173
Equity Prime Mortgage LLC 1 7.38% $6,672
PENNYMAC LOAN SERVICES, LLC 1 4.75% $16,373
PLANET HOME LENDING, LLC 1 5.50% $7,363
PRIMELENDING, A PLAINSCAPITAL COMPANY 1 7.25% $8,201
CROSSCOUNTRY MORTGAGE, LLC 1 6.19% $19,007
Residential Mortgage Solutions, Inc. 1 6.88% $7,706
UNITED 1 7.75% $9,196
AMERICAN FINANCIAL RESOURCES, INC. 1 7.75% $9,522
GUARANTEED RATE AFFINITY, LLC 1 5.88% $11,018
Independent Bank 1 6.88% $7,298
CHURCHILL MORTGAGE CORPORATION 1 5.50% $16,116
GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 1 7.63% $8,072
Flagstar Bank, FSB 1 7.25% $10,099

The top Traverse City FHA lender as defined by loan originations is UNITED WHOLESALE MORTGAGE, LLC, with 44 FHA loans originated. Their average total fees are $10,763, which is $57 lower than the next largest lender, QUICKEN LOANS, LLC.

The lowest fee Traverse City FHA lenders (with over 10 loans originated) are CALIBER HOME LOANS, INC. ($10,490), UNITED WHOLESALE MORTGAGE, LLC ($10,763), QUICKEN LOANS, LLC ($10,820), .

The lowest rate Traverse City FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (6.20%), CALIBER HOME LOANS, INC. (6.31%), UNITED WHOLESALE MORTGAGE, LLC (6.65%), .

Traverse City FHA Loan Limits

Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
TRAVERSE CITY, MI BENZIE 2022 $420,680 $538,650 $651,050 $809,150
TRAVERSE CITY, MI GRAND TRAVERSE 2022 $420,680 $538,650 $651,050 $809,150
TRAVERSE CITY, MI KALKASKA 2022 $420,680 $538,650 $651,050 $809,150
TRAVERSE CITY, MI LEELANAU 2022 $420,680 $538,650 $651,050 $809,150
TRAVERSE CITY, MI BENZIE 2023 $472,030 $604,400 $730,525 $907,900
TRAVERSE CITY, MI GRAND TRAVERSE 2023 $472,030 $604,400 $730,525 $907,900
TRAVERSE CITY, MI KALKASKA 2023 $472,030 $604,400 $730,525 $907,900
TRAVERSE CITY, MI LEELANAU 2023 $472,030 $604,400 $730,525 $907,900

Market Conditions (Median, Average Prices & Listing Count)

Realtor.com - Traverse City (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 $327,650 (6.7%) $460,418 (4.0%) 1.21 1,136
2018-02-01 $325,000 (6.8%) $461,184 (6.5%) 1.18 1,108
2018-03-01 $324,950 (8.3%) $457,845 (6.0%) 1.14 1,155
2018-04-01 $325,000 (8.4%) $464,115 (10.2%) 1.10 1,228
2018-05-01 $329,250 (10.0%) $468,541 (10.4%) 1.10 1,367
2018-06-01 $325,000 (8.1%) $461,995 (7.0%) 1.08 1,582
2018-07-01 $318,750 (-0.1%) $450,046 (0.7%) 1.06 1,745
2018-08-01 $315,000 (-1.6%) $448,761 (-1.8%) 1.06 1,772
2018-09-01 $309,250 (-3.1%) $447,667 (-1.1%) 1.04 1,742
2018-10-01 $301,225 (-6.5%) $447,610 (-2.1%) 1.02 1,680
2018-11-01 $309,500 (-5.3%) $454,225 (-2.6%) 1.05 1,582
2018-12-01 $310,500 (-5.6%) $466,265 (-1.0%) 1.07 1,374
2019-01-01 $309,892 (-5.4%) $466,426 (1.3%) 1.07 1,248
2019-02-01 $305,350 (-6.1%) $463,499 (0.5%) 1.03 1,211
2019-03-01 $318,314 (-2.0%) $468,494 (2.3%) 1.04 1,211
2019-04-01 $324,950 (0.0%) $470,011 (1.3%) 1.03 1,227
2019-05-01 $329,000 (-0.1%) $473,545 (1.1%) 1.03 1,345
2019-06-01 $329,900 (1.5%) $479,102 (3.7%) 1.03 1,530
2019-07-01 $330,000 (3.5%) $483,432 (7.4%) 1.03 1,606
2019-08-01 $329,155 (4.5%) $481,978 (7.4%) 1.04 1,595
2019-09-01 $327,886 (6.0%) $477,557 (6.7%) 1.05 1,564
2019-10-01 $338,541 (12.4%) $487,750 (9.0%) 1.09 1,350
2019-11-01 $349,000 (12.8%) $502,983 (10.7%) 1.14 1,075
2019-12-01 $349,450 (12.5%) $510,393 (9.5%) 1.17 970
2020-01-01 $349,000 (12.6%) $513,515 (10.1%) 1.17 872
2020-02-01 $369,000 (20.8%) $536,054 (15.7%) 1.21 786
2020-03-01 $379,900 (19.4%) $541,905 (15.7%) 1.19 775
2020-04-01 $387,400 (19.2%) $542,869 (15.5%) 1.21 799
2020-05-01 $395,000 (20.1%) $560,489 (18.4%) 1.20 856
2020-06-01 $399,450 (21.1%) $576,902 (20.4%) 1.18 877
2020-07-01 $389,450 (18.0%) $594,494 (23.0%) 1.13 766
2020-08-01 $385,000 (17.0%) $595,020 (23.5%) 1.10 712
2020-09-01 $379,800 (15.8%) $593,811 (24.3%) 1.09 611
2020-10-01 $379,900 (12.2%) $622,348 (27.6%) 1.09 544
2020-11-01 $388,500 (11.3%) $646,632 (28.6%) 1.14 464
2020-12-01 $379,200 (8.5%) $638,267 (25.1%) 1.13 421
2021-01-01 $389,000 (11.5%) $592,696 (15.4%) 1.16 342
2021-02-01 $410,000 (11.1%) $633,807 (18.2%) 1.19 274
2021-03-01 $424,400 (11.7%) $700,259 (29.2%) 1.20 270
2021-04-01 $427,100 (10.3%) $715,891 (31.9%) 1.16 260
2021-05-01 $449,000 (13.7%) $717,080 (27.9%) 1.19 317
2021-06-01 $475,000 (18.9%) $749,391 (29.9%) 1.25 354
2021-07-01 $450,000 (15.6%) $739,264 (24.4%) 1.19 372
2021-08-01 $455,000 (18.2%) $732,227 (23.1%) 1.21 388
2021-09-01 $450,000 (18.5%) $740,610 (24.7%) 1.20 376
2021-10-01 $434,900 (14.5%) $742,207 (19.3%) 1.16 355
2021-11-01 $424,900 (9.4%) $762,077 (17.9%) 1.14 312
2021-12-01 $429,900 (13.4%) $773,135 (21.1%) 1.16 261
2022-01-01 $450,000 (15.7%) $793,090 (33.8%) 1.22 237
2022-02-01 $453,450 (10.6%) $811,637 (28.1%) 1.18 204
2022-03-01 $492,500 (16.1%) $844,214 (20.6%) 1.23 206
2022-04-01 $485,000 (13.6%) $862,664 (20.5%) 1.16 214
2022-05-01 $499,000 (11.1%) $857,224 (19.5%) 1.14 298
2022-06-01 $499,500 (5.2%) $860,393 (14.8%) 1.11 389
2022-07-01 $534,950 (18.9%) $813,042 (10.0%) 1.21 507
2022-08-01 $520,000 (14.3%) $790,376 (7.9%) 1.20 529
2022-09-01 $506,750 (12.6%) $780,532 (5.4%) 1.18 483
2022-10-01 $499,950 (15.0%) $764,063 (2.9%) 1.18 472
2022-11-01 $481,050 (13.2%) $748,948 (-1.7%) 1.16 430
2022-12-01 $479,900 (11.6%) $763,714 (-1.2%) 1.18 361
2023-01-01 $464,950 (3.3%) $773,499 (-2.5%) 1.15 286
2023-02-01 $485,975 (7.2%) $786,699 (-3.1%) 1.17 293
2023-03-01 $486,475 (-1.2%) $794,078 (-5.9%) 1.15 293
2023-04-01 $499,000 (2.9%) $809,578 (-6.2%) 1.16 315
2023-05-01 $534,000 (7.0%) $827,017 (-3.5%) 1.21 367
2023-06-01 $524,500 (5.0%) $811,622 (-5.7%) 1.18 451
2023-07-01 $497,500 (-7.0%) $772,506 (-5.0%) 1.13 508
2023-08-01 $495,000 (-4.8%) $757,657 (-4.1%) 1.14 514
2023-09-01 $499,000 (-1.5%) $755,802 (-3.2%) 1.16 556
2023-10-01 $499,000 (-0.2%) $747,081 (-2.2%) 1.17 565
2023-11-01 $477,250 (-0.8%) $722,174 (-3.6%) 1.14 559
2023-12-01 $485,000 (1.1%) $724,312 (-5.2%) 1.18 469
2024-01-01 $459,188 (-1.2%) $675,119 (-12.7%) 1.12 390
2024-02-01 $459,375 (-5.5%) $694,065 (-11.8%) 1.11 391
2024-03-01 $480,000 (-1.3%) $700,635 (-11.8%) 1.13 428
2024-04-01 $464,950 (-6.8%) $723,188 (-10.7%) 1.08 489
2024-05-01 $481,200 (-9.9%) $751,047 (-9.2%) 1.09 566
Traverse City's median listing price for 2024-05-01 was $481,200, a difference of $-52,800 (-9.9%) versus the prior year and $16,250 versus the prior month.

Traverse City's median listing price comes in at 109% of the national average.

Traverse City's average listing price for 2024-05-01 was $751,047, a difference of $-75,970 (-9.2%) versus the prior year and $27,859 versus the prior month.

For the 2024-05-01 period, Traverse City had 566 MLS listings, a difference of 77 listings (16%) versus the prior month and 199 listings (54%) versus the prior year.

Median Listing Time on Market & Square Footage

Realtor.com - Traverse City (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
Date Median Listing Time on Market Median Square Footage
2018-01-01 121 days 1,703 sqft
2018-02-01 122 days 1,700 sqft
2018-03-01 127 days 1,719 sqft
2018-04-01 84 days 1,718 sqft
2018-05-01 55 days 1,750 sqft
2018-06-01 48 days 1,778 sqft
2018-07-01 56 days 1,771 sqft
2018-08-01 66 days 1,793 sqft
2018-09-01 75 days 1,800 sqft
2018-10-01 80 days 1,739 sqft
2018-11-01 85 days 1,717 sqft
2018-12-01 100 days 1,725 sqft
2019-01-01 111 days 1,681 sqft
2019-02-01 117 days 1,638 sqft
2019-03-01 101 days 1,631 sqft
2019-04-01 76 days 1,641 sqft
2019-05-01 50 days 1,660 sqft
2019-06-01 46 days 1,700 sqft
2019-07-01 54 days 1,709 sqft
2019-08-01 60 days 1,713 sqft
2019-09-01 67 days 1,719 sqft
2019-10-01 76 days 1,732 sqft
2019-11-01 89 days 1,722 sqft
2019-12-01 101 days 1,692 sqft
2020-01-01 114 days 1,651 sqft
2020-02-01 106 days 1,628 sqft
2020-03-01 78 days 1,618 sqft
2020-04-01 83 days 1,652 sqft
2020-05-01 81 days 1,732 sqft
2020-06-01 72 days 1,781 sqft
2020-07-01 60 days 1,967 sqft
2020-08-01 68 days 1,888 sqft
2020-09-01 73 days 1,827 sqft
2020-10-01 64 days 1,792 sqft
2020-11-01 67 days 1,665 sqft
2020-12-01 77 days 1,604 sqft
2021-01-01 80 days 1,608 sqft
2021-02-01 79 days 1,584 sqft
2021-03-01 49 days 1,625 sqft
2021-04-01 44 days 1,660 sqft
2021-05-01 37 days 1,708 sqft
2021-06-01 38 days 1,823 sqft
2021-07-01 40 days 1,794 sqft
2021-08-01 40 days 1,758 sqft
2021-09-01 42 days 1,771 sqft
2021-10-01 54 days 1,753 sqft
2021-11-01 58 days 1,744 sqft
2021-12-01 66 days 1,622 sqft
2022-01-01 68 days 1,545 sqft
2022-02-01 72 days 1,510 sqft
2022-03-01 64 days 1,515 sqft
2022-04-01 44 days 1,531 sqft
2022-05-01 30 days 1,672 sqft
2022-06-01 31 days 1,806 sqft
2022-07-01 33 days 1,800 sqft
2022-08-01 47 days 1,770 sqft
2022-09-01 58 days 1,741 sqft
2022-10-01 61 days 1,700 sqft
2022-11-01 70 days 1,648 sqft
2022-12-01 87 days 1,603 sqft
2023-01-01 81 days 1,628 sqft
2023-02-01 60 days 1,567 sqft
2023-03-01 56 days 1,567 sqft
2023-04-01 52 days 1,632 sqft
2023-05-01 42 days 1,684 sqft
2023-06-01 38 days 1,763 sqft
2023-07-01 40 days 1,766 sqft
2023-08-01 51 days 1,716 sqft
2023-09-01 48 days 1,708 sqft
2023-10-01 51 days 1,719 sqft
2023-11-01 59 days 1,610 sqft
2023-12-01 80 days 1,585 sqft
2024-01-01 82 days 1,528 sqft
2024-02-01 67 days 1,526 sqft
2024-03-01 47 days 1,550 sqft
2024-04-01 44 days 1,539 sqft
2024-05-01 43 days 1,550 sqft
Traverse City's median listing age (time on market) for 2024-05-01 was 43 days. This is 2% longer than the same period one year ago.

Traverse City's median square footage for active listings during the 2024-05-01 period was 1,550 sqft. One year prior, the average listing was 1,684 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).