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MI Home Lender Requirements

MI Home Loan Lender Requirements and Application

Why should I become a MI Home Loan lender?

  • Borrowers may be eligible for MI 10K DPA Loan on FHA, RD and Conventional loans up to a maximum of $10,000. This can be applied to down payment, closing costs and prepaid expenses (taxes and insurance). Maximum financing is not required. Available statewide.
  • 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.
  • Producing Loan Officers are listed on the Experienced Loan Officer Locator. Top producing Loan Officers have a dedicated page on MSHDA’s website.


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 physical presence in Michigan
  • 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?