MI Home Lender Requirements

MI Home Loan Lender Requirements

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 or email MSHDA-NewLenderInfo@michigan.gov for more information.

FAQ’s

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