Best Mortgage Lenders in Michigan

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Contributor, Benzinga
October 31, 2023

Buying a home can be an exciting experience — but it also involves a lot of big decisions such as choosing the right mortgage lender. Since different lenders offer different types of mortgages and incentives, it’s important to find a lender who will work with you to meet your financial goals. The dream of homeownership will come with private mortgage insurance, property taxes, Fannie Mae or Freddie Mac loans, government-backed loans like an FHA, USDA or VA loan, varying loan terms and potentially competitive interest rates.

With that in mind, use these insights to walk through everything you should know about getting a mortgage in Michigan, complete with a list of the best mortgage companies in Michigan so you know you’re getting the best lender for you.

The Best Mortgage Lenders in Michigan

Now that you know more about the mortgage process, it’s time to find your mortgage lender. Here’s a quick review of the top 7 lenders in Michigan, grouped into categories so you can find the right fit for you.

1. Best for Online Service: Rocket Mortgage®

Rocket Mortgage® is one of the top mortgage lenders in the state and offers a fully online mortgage application process and intuitive interface. Quicken Loans® lets you move at your own pace and has a fast income verification process to speed up your application timeframe. Quicken Loans® also provides 24/7 customer service assistance.

Loan types offered: Conventional, FHA, VA and USDA

Pros

  • Apply online through their website
  • Faster loan processing times
  • Variety of mortgage options

Cons

  • Lack of personal interaction
  • Inability to negotiate terms

2. Best for Down Payment Assistance: guaranteed Rate

Need help securing a down payment and have a good credit score? guaranteed Rate may be able to help. guaranteed Rate has an entirely online mortgage process complete with low down payment options and down payment assistance programs. This lender also has a strong customer satisfaction rating.

Loan types offered: Conventional, FHA, VA and USDA

Pros

  • Competitive interest rates for home loans
  • Streamlined application process and quick approval times
  • Wide range of loan products

Cons

Operates mainly as an online mortgage lender

3. Best for Flexible Mortgage Options: Angel Oak Mortgage Solutions

Angel Oak Mortgage Solutions is a full-service mortgage lender that offers both traditional and non-conforming mortgage options for homeowners across America. FHA, conventional and jumbo loans are available along with refinancing. You can even access loans for portfolios or new investors, depending on your personal situation.

Pros

  • You can choose from several loan types and get the flexibility you need
  • You can handle your entire loan online and make the process that much simpler

Cons

  • Their qualification requirements can be much stricter than the competition

4. Best for Self-Employed: CrossCountry Mortgage

CrossCountry Mortgage makes it easy for all types of home buyers to get approved for a mortgage. Their flexible requirements can help you get financing, with no employment or income verification and no minimum DTI. CrossCountry Mortgage offers traditional loan terms, as well as more flexible home payment plans with their 40-year loan program.

It's also easier to get approved if you're self-employed. Tax returns are not required and you'll only need one year of self-employment income history and a minimum credit score of 580. CrossCountry Mortgage can also help you get approved on assets alone, like your bank statements, stocks and bonds, or retirement accounts.

Pros

  • Long-term loan programs
  • Low minimum credit score
  • No minimum DTI

Cons

  • Service not available in all 50 states

Mortgages Explained

There are several types of mortgages available for Michigan home buyers. They’re financed differently, have specific eligibility requirements and provide distinct benefits. Let’s look at 5 of the most common mortgage types below.

Conventional. A conventional loan is a home loan that’s funded through traditional means, from a bank or credit union. Conventional loans often have high interest rates, since they aren’t backed by the government. On the upside, these loans offer more flexible requirements, which makes it easier for many buyers to get approved for financing.

Many conventional loans have low down payment options, which is perfect if you don’t have a lot of cash saved to put down on your home. Let’s say you put less than 20% down. You’ll have to purchase private mortgage insurance (PMI), which you’ll pay monthly. PMI protects your lender in the event that you default on your loan.

FHA Loans. An FHA mortgage is a home loan that’s funded through the U.S. Federal Housing Administration. It’s popular among first time home buyers. FHA loans often have lower-than-market interest rates, low down payment options (starting at 3.5%) and low credit score minimums (starting at 580).

You’ll be required to purchase an FHA mortgage insurance premium (MIP) if you put less than 20% down on your home — it protects your lender if you default on your loan. MIP costs 1.75% of the loan amount at the time of closing and between 0.45% and 1.05% of your loan amount each year.

Most conventional lenders offer FHA loans.

VA Loans. A VA loan is a home loan that’s funded through the U.S. Department of Veterans Affairs. It’s designed to help current and former military members and their families buy a home. VA loans often have lower-than-market interest rates, no down payment requirements and no set credit score minimums (unless determined by your lender).

VA loans do not require mortgage insurance but do charge an origination fee for processing your loan. This fee is typically 1% of your loan’s value and can be rolled into the loan amount.

Most conventional lenders and VA-only lenders offer VA loans.

USDA Loans. A USDA mortgage is a home loan that’s funded through the U.S. Department of Agriculture, for homes that are purchased in rural areas of the country. USDA loans often have lower-than-market interest rates, no down payment requirements (in some cases) and low credit score minimums (starting at 640). They also have low rates on mortgage insurance.

Let’s say you put down less than 20% down on your home. You’ll need to purchase USDA mortgage insurance. USDA mortgage insurance costs 1% of your home loan amount at the time of closing and 0.35% of your loan amount every year.

Most conventional lenders offer USDA loans.

Jumbo Loans. A jumbo loan is a home loan used to buy high-value homes, typically over $484,350, depending on where you buy in Michigan. Jumbo loans are either conventional or FHA loans and they typically have stricter requirements for down payments and credit scores. You should expect to put down 20% to be approved for a jumbo loan, though some online lenders like Quicken Loans® only require a 10% down payment.

Next, let’s look at some common mortgage terms so you can better understand how different terms can impact your mortgage rate.

30-Year Fixed. This type of mortgage term has a fixed monthly payment and rate that lasts for the 30-year term. You should expect to have more affordable monthly payments, though you’ll ultimately pay more interest than you would with a shorter length fixed-rate loan. 

15-Year Fixed. This type of mortgage term has a fixed monthly payment and rate that lasts for the 15-year term. You should expect to have higher monthly payments, though you’ll ultimately pay less interest than you would with a longer length fixed-rate loan.

5/1 ARM. This type of mortgage term does not have a fixed monthly payment or rate. 5/1 adjustable-rate mortgages, or ARMs, have a set rate for a 5-year introductory period. After 5 years, your monthly payment and rate vary based on the housing market.

Which Mortgage Lender is Best for You?

Knowing which mortgage lender is right for you depends on a variety of factors. Many lenders offer the same types of mortgages, so spotting the differences can be difficult.

Here are some key factors to keep in mind as you research mortgage lenders:

  • Lender type: There are 2 types of mortgage lenders: traditional and online lenders. A traditional lender can work with you face-to-face to walk you through the mortgage process. Online lenders typically offer online or phone customer service to guide you, but allow you to move through the mortgage process at your own speed. Both lenders provide different mortgage experiences but typically offer the same mortgage options.
  • Incentives: Mortgage incentives are important to keep in mind as you compare lenders. Some lenders might offer down payment assistance loans or rate discounts for existing customers. Decide which incentives could be the most helpful for you before you choose a lender.
  • Loan requirements: Each lender has specific loan requirements you’ll need to meet to get approved for a mortgage. Review these requirements before you apply so you know your chances of approval ahead of time.
  • Loan processing time: Each lender processes loans differently and has its own processing time. Learn more about your lender’s typical closing time period so you can determine how soon you’ll be in your new home. 

Lender Credit Score Minimums in Michigan

Your lender will use your credit score to understand how you handle debt. Your credit score is one of the most important factors that will determine your mortgage approval chances and mortgage rate.

Every lender has its own requirements for credit scores. We’ve gathered minimum scores from the top 5 lenders in Michigan.

LenderMinimum Credit Score Required
Quicken Loans®620
PNC Financial Services700
guaranteed Rate620
Bank of America620
CitiBank620

Current Mortgage Rates in Michigan

The interest rate on your loan is referred to as your mortgage rate. This is primarily determined by your credit score, but your down payment, home location, mortgage type and mortgage term also play a role in determining your mortgage rate. 

Mortgage rate averages range from city to city but you can get a good idea of your expected rate by viewing your state’s average rates. Here’s a quick look at average mortgage rates for the most popular mortgage terms in Michigan.

Loan TypeRateAPR
30-year fixed N/A N/A
15-year fixed N/A N/A
7/1 ARM (adjustable rate) N/A N/A
5/1 ARM (adjustable rate) N/A N/A
Rates based on an average home price of $173,277 and a down payment of 20%.
See more mortgage rates on Zillow

Average Days to Close on a Loan

When you close on your loan, you’ll finalize all of your financial paperwork, take a final walkthrough of your home, pay your down payment and closing costs and lastly, receive the keys to your new home.

The closing process can take between 30 and 45 days, depending on your lender. Here are some average closing time frames from the top lenders in Michigan.

LenderAverage Days to Close
Quicken Loans®30 days
better.com21 days
CitiBank30 days
Bank of America45 days
SunTrust60 days

Browse Best Mortgage Lenders by City

Detroit
Grand Rapids
Kalamazoo
Lansing
Saginaw

Buy Your Michigan Home with Confidence

It’s important to explore your different mortgage options as you decide how to finance your new home in Michigan. Take your time figuring out which mortgage incentives will make your purchase easier, then find a lender that can meet your needs.

Still have questions on mortgage rates in Michigan? Benzinga can provide you with individualized purchase or refinance mortgage rates for your home.

Frequently Asked Questions

Q

Can I get a mortgage in Michigan if I have a low credit score?

A

Absolutely! While your credit score is an important factor, there are mortgage lenders in Michigan who specialize in working with borrowers with less than perfect credit.

Q

How much can I borrow for a mortgage in Michigan?

A

The amount you can borrow for a mortgage in Michigan depends on various factors, including your income, credit score, and the property’s value. It’s best to consult with a mortgage lender to determine your specific borrowing capacity.

Q

Can I refinance my mortgage in Michigan?

A

Yes, refinancing your mortgage in Michigan is possible and can be a smart move if it helps you secure a lower interest rate, reduce monthly payments, or access funds for other purposes. Consult with a mortgage lender to assess if refinancing is right for you.

Get Ready for Take Off

Rocket Mortgage® is an online mortgage experience developed by the firm formerly known as Quicken Loans®, America’s largest mortgage lender. Rocket Mortgage® makes it easy to get a mortgage — you just tell the company about yourself, your home, your finances and Rocket Mortgage® gives you real interest rates and numbers. You can use Rocket Mortgage® to get approved, ask questions about your mortgage, manage your payments and more.

You can work at your own pace and someone is always there to answer your questions — 24 hours a day, 7 days a week. Want a fast, convenient way to get a mortgage? Give Rocket Mortgage® a try.

About Melinda Sineriz

Melinda specializes in writing about mortgages. student loans, personal loans, insurance, managing credit and debt, and credit cards.