Michigan State Housing Development Authority
MI Home Loan Lender Requirements and Application (Formerly known as MI First)
Why should I become a MI Home Loan lender?
Borrowers may be eligible for Michigan Down Payment on FHA, RD and Conventional 97% loans up to a maximum of $7,500. This can be applied to down payment, closing costs and prepaid expenses (taxes and insurance).Maximum financing required.
Low interest rates mean more purchasing power for the buyer.
MSHDA financing can be used easily with most loan types; Conventional, FHA, VA, or RD.
The loan commitment is valid 90 days for an existing home and 180 days for new construction.
Lenders can enhance their CRA performance.
Participating lenders receive free MSHDA marketing materials and a preferred lender listing on MSHDA's website.
If you have questions please contact the Business Development Specialist for your area.
Lender Application and Approval
If your company meets all of the requirements listed below, MSHDA welcomes your application to participate in our Homeownership loan program. Please complete the MSHDA Lender Application, review the MSHDA Lender Agreement, and return both to Christine Blank at MSHDA's Division of Homeownership, 735 East Michigan Avenue, P.O. Box 30044, Lansing, MI 48909.
What are the MI Home Loan lender requirements?
Eligible lenders must be one of the following:
A state or federally chartered bank
A state or federally chartered credit union
Licensed or registered under the Michigan Mortgage Lenders and Servicers Licensing Act
Eligible lenders must meet ALL of the following criteria:
Have a net worth of at least $250,000
Have Mortgagee Errors and Omissions insurance coverage of at least $300,000
Have Fidelity Bond insurance coverage of at least $300,000
Must be licensed to service mortgage loans in Michigan
Eligible lenders must also have one of the following designations:
A FNMA, FHLMC, or Federal Home Loan Bank approved seller/servicer, if you intend to originate MSHDA Conventional loans.
A FHA Direct Endorsement approved mortgage lender, if you intend to originate MSHDA FHA loans.
A VA-Automatic approved mortgagee, if you intend to originate MSHDA VA loans.
A USDA Rural Development Guaranteed mortgagee, if you intend to originate MSHDA RD loans
How are lending institutions compensated for loans?
Generally, approved Lenders can earn 3% on MI First Home loans
1% origination fee from the borrower
1.75% Service Release Premium (SRP)
0.25% for timely submission of closing paperwork
Where are the MI Home Loan lenders listed?
Access our Experienced Loan Officer list