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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.
- If you have questions, please contact the Business Development Specialist for your area.
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 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 Locator