FHA Loan Limits in Michigan
FHA loans, which are backed by the Federal Housing Administration (FHA), help homebuyers with less-than-perfect credit qualify. Although an FHA loan is often easier to get than a conventional home loan, there are limits buyers must be mindful of when searching for their dream home.
In Michigan, homebuyers can use an FHA loan to purchase a single-family home for up to $472,030.
Michigan FHA loan limits by county
| County name | One unit | Two unit | Three unit | Four unit | Median sale price |
|---|---|---|---|---|---|
| ALCONA | $472,030 | $604,400 | $730,525 | $907,900 | $110,000 |
| ALGER | $472,030 | $604,400 | $730,525 | $907,900 | $124,000 |
| ALLEGAN | $472,030 | $604,400 | $730,525 | $907,900 | $225,000 |
| ALPENA | $472,030 | $604,400 | $730,525 | $907,900 | $112,000 |
| ANTRIM | $472,030 | $604,400 | $730,525 | $907,900 | $160,000 |
| ARENAC | $472,030 | $604,400 | $730,525 | $907,900 | $120,000 |
| BARAGA | $472,030 | $604,400 | $730,525 | $907,900 | $85,000 |
| BARRY | $472,030 | $604,400 | $730,525 | $907,900 | $200,000 |
| BAY | $472,030 | $604,400 | $730,525 | $907,900 | $115,000 |
| BENZIE | $472,030 | $604,400 | $730,525 | $907,900 | $299,000 |
| BERRIEN | $472,030 | $604,400 | $730,525 | $907,900 | $173,000 |
| BRANCH | $472,030 | $604,400 | $730,525 | $907,900 | $140,000 |
| CALHOUN | $472,030 | $604,400 | $730,525 | $907,900 | $140,000 |
| CASS | $472,030 | $604,400 | $730,525 | $907,900 | $179,000 |
| CHARLEVOIX | $472,030 | $604,400 | $730,525 | $907,900 | $250,000 |
| CHEBOYGAN | $472,030 | $604,400 | $730,525 | $907,900 | $250,000 |
| CHIPPEWA | $472,030 | $604,400 | $730,525 | $907,900 | $178,000 |
| CLARE | $472,030 | $604,400 | $730,525 | $907,900 | $80,000 |
| CLINTON | $472,030 | $604,400 | $730,525 | $907,900 | $215,000 |
| CRAWFORD | $472,030 | $604,400 | $730,525 | $907,900 | $120,000 |
| DELTA | $472,030 | $604,400 | $730,525 | $907,900 | $104,000 |
| DICKINSON | $472,030 | $604,400 | $730,525 | $907,900 | $95,000 |
| EATON | $472,030 | $604,400 | $730,525 | $907,900 | $215,000 |
| EMMET | $472,030 | $604,400 | $730,525 | $907,900 | $185,000 |
| GENESEE | $472,030 | $604,400 | $730,525 | $907,900 | $163,000 |
| GLADWIN | $472,030 | $604,400 | $730,525 | $907,900 | $119,000 |
| GOGEBIC | $472,030 | $604,400 | $730,525 | $907,900 | $108,000 |
| GRAND TRAVERSE | $472,030 | $604,400 | $730,525 | $907,900 | $299,000 |
| GRATIOT | $472,030 | $604,400 | $730,525 | $907,900 | $115,000 |
| HILLSDALE | $472,030 | $604,400 | $730,525 | $907,900 | $140,000 |
| HOUGHTON | $472,030 | $604,400 | $730,525 | $907,900 | $114,000 |
| HURON | $472,030 | $604,400 | $730,525 | $907,900 | $188,000 |
| INGHAM | $472,030 | $604,400 | $730,525 | $907,900 | $215,000 |
| IONIA | $472,030 | $604,400 | $730,525 | $907,900 | $293,000 |
| IOSCO | $472,030 | $604,400 | $730,525 | $907,900 | $120,000 |
| IRON | $472,030 | $604,400 | $730,525 | $907,900 | $116,000 |
| ISABELLA | $472,030 | $604,400 | $730,525 | $907,900 | $150,000 |
| JACKSON | $472,030 | $604,400 | $730,525 | $907,900 | $153,000 |
| KALAMAZOO | $472,030 | $604,400 | $730,525 | $907,900 | $198,000 |
| KALKASKA | $472,030 | $604,400 | $730,525 | $907,900 | $299,000 |
| KENT | $472,030 | $604,400 | $730,525 | $907,900 | $293,000 |
| KEWEENAW | $472,030 | $604,400 | $730,525 | $907,900 | $114,000 |
| LAKE | $472,030 | $604,400 | $730,525 | $907,900 | $72,000 |
| LAPEER | $472,030 | $604,400 | $730,525 | $907,900 | $309,000 |
| LEELANAU | $472,030 | $604,400 | $730,525 | $907,900 | $299,000 |
| LENAWEE | $472,030 | $604,400 | $730,525 | $907,900 | $168,000 |
| LIVINGSTON | $472,030 | $604,400 | $730,525 | $907,900 | $309,000 |
| LUCE | $472,030 | $604,400 | $730,525 | $907,900 | $76,000 |
| MACKINAC | $472,030 | $604,400 | $730,525 | $907,900 | $118,000 |
| MACOMB | $472,030 | $604,400 | $730,525 | $907,900 | $309,000 |
| MANISTEE | $472,030 | $604,400 | $730,525 | $907,900 | $130,000 |
| MARQUETTE | $472,030 | $604,400 | $730,525 | $907,900 | $165,000 |
| MASON | $472,030 | $604,400 | $730,525 | $907,900 | $140,000 |
| MECOSTA | $472,030 | $604,400 | $730,525 | $907,900 | $140,000 |
| MENOMINEE | $472,030 | $604,400 | $730,525 | $907,900 | $105,000 |
| MIDLAND | $472,030 | $604,400 | $730,525 | $907,900 | $170,000 |
| MISSAUKEE | $472,030 | $604,400 | $730,525 | $907,900 | $180,000 |
| MONROE | $472,030 | $604,400 | $730,525 | $907,900 | $193,000 |
| MONTCALM | $472,030 | $604,400 | $730,525 | $907,900 | $293,000 |
| MONTMORENCY | $472,030 | $604,400 | $730,525 | $907,900 | $103,000 |
| MUSKEGON | $472,030 | $604,400 | $730,525 | $907,900 | $160,000 |
| NEWAYGO | $472,030 | $604,400 | $730,525 | $907,900 | $130,000 |
| OAKLAND | $472,030 | $604,400 | $730,525 | $907,900 | $309,000 |
| OCEANA | $472,030 | $604,400 | $730,525 | $907,900 | $96,000 |
| OGEMAW | $472,030 | $604,400 | $730,525 | $907,900 | $151,000 |
| ONTONAGON | $472,030 | $604,400 | $730,525 | $907,900 | $70,000 |
| OSCEOLA | $472,030 | $604,400 | $730,525 | $907,900 | $150,000 |
| OSCODA | $472,030 | $604,400 | $730,525 | $907,900 | $81,000 |
| OTSEGO | $472,030 | $604,400 | $730,525 | $907,900 | $291,000 |
| OTTAWA | $472,030 | $604,400 | $730,525 | $907,900 | $293,000 |
| PRESQUE ISLE | $472,030 | $604,400 | $730,525 | $907,900 | $107,000 |
| ROSCOMMON | $472,030 | $604,400 | $730,525 | $907,900 | $128,000 |
| SAGINAW | $472,030 | $604,400 | $730,525 | $907,900 | $121,000 |
| SANILAC | $472,030 | $604,400 | $730,525 | $907,900 | $142,000 |
| SCHOOLCRAFT | $472,030 | $604,400 | $730,525 | $907,900 | $167,000 |
| SHIAWASSEE | $472,030 | $604,400 | $730,525 | $907,900 | $215,000 |
| ST. CLAIR | $472,030 | $604,400 | $730,525 | $907,900 | $309,000 |
| ST. JOSEPH | $472,030 | $604,400 | $730,525 | $907,900 | $150,000 |
| TUSCOLA | $472,030 | $604,400 | $730,525 | $907,900 | $129,000 |
| VAN BUREN | $472,030 | $604,400 | $730,525 | $907,900 | $170,000 |
| WASHTENAW | $472,030 | $604,400 | $730,525 | $907,900 | $330,000 |
| WAYNE | $472,030 | $604,400 | $730,525 | $907,900 | $309,000 |
| WEXFORD | $472,030 | $604,400 | $730,525 | $907,900 | $180,000 |
How are FHA loan limits determined?
The U.S. Department of Housing and Urban Development (HUD) sets FHA loan limits annually based on conforming loan limits, or the limits on conventional mortgages. Changes in FHA loan limits reflect the changes in the conforming loan limits, so when conforming loan limits increase, so do FHA loan limits.
The minimum FHA loan limit – also called the “floor” – is $472,030, equal to 65% of conforming loan limits. However, in some high-cost parts of the country FHA loan limits equal to 150% of conforming loan limits. This is called the FHA “ceiling” and is $1,089,300. No counties in Michigan exceed the FHA floor limit.
How to qualify for an FHA loan in Michigan
Many borrowers prefer FHA loans to conventional loans because of the flexible lending requirements. Generally, qualifying for an FHA is easier, so it is a great alternative when a conventional loan isn’t an option. Like with all loans, a review of the borrower’s credit, income and employment history is completed before the loan is approved.
To qualify, borrowers must meet the following FHA loan requirements:
- Minimum credit score of 500: A minimum credit score of 500 qualifies borrowers for an FHA loan.
- Minimum down payment of 3.5%: The minimum down payment is 3.5% for borrowers with a credit score of 580 or higher. The down payment is 10% for borrowers with a credit score between 500 and 579.
- Debt-to-income ratio (DTI) of 43% or lower: Debt-to-income ratio measures a borrower’s ability to repay the mortgage. Borrowers with a DTI of 50% may still qualify depending on their credit scores.
- FHA appraisal: An FHA-approved appraiser inspects the home and assesses its value and condition to ensure it meets the Property Acceptability Criteria.
- Mortgage insurance: Mortgage insurance covers the lender’s cost in the event the home is foreclosed on. An upfront cost of 1.75% of the loan amount is paid by the borrower, as well as an annual premium ranging from 0.15% and 0.75%.
- Occupancy: You must the home you purchase with an FHA loan must be your primary residence for at least 12 months.
Buying a multifamily property with an FHA loan
Borrowers interested in buying a multifamily home also have the option to use an FHA loan to make their purchase. However, you’ll have to live in one of the units for at least one year after purchase. And since the same requirements apply, those with a credit score of at least a 580 get access to a 3.5% down payment.
FHA lenders in Michigan
Here are a few options for FHA lenders in Michigan.
| Lender name | LT rating | Minimum FHA credit score |
|---|---|---|
| Chase Mortgage | 5 stars | Not disclosed |
| Better Mortgage | 5 stars | 620 |
| Wells Fargo | 5 stars | Not disclosed |
| Rocket Mortgage | 5 stars | 580 |
| Bank of America | 5 stars | Not disclosed |