FHA Loans in Michigan

Picking the perfect home in the “Great Lake State” should be smooth sailing, but often leaves home buyers drowning in home financing options.

That’s why many first-time homebuyers are turning to Michigan FHA loans for low down payment opportunities and generally lower credit score requirements when compared to conventional loans. Continue reading to learn more about why and FHA loan in Michigan could be right for you.

Why Use an FHA Loan in Michigan

As of April 2019, the total value of FHA loans in Michigan was a little more than $225 million! So whether you are looking to be near the great lakes, or closer inland, an FHA home loan may be the best option for you.

Benefits of choosing an FHA Loan

• FHA loans are great for first-time homebuyers, especially those who can’t or don’t want to put down a large down payment.
• FHA mortgage rates are typically lower than conventional mortgage rates.
• FHA down payment and credit score requirements are typically lower than conventional loans
• Sellers can contribute up to 6% of the purchase price or appraised value (whichever is less) towards the buyers’ closing costs.
• FHA loans are assumable

FHA Loan Limits in Michigan

While there is a maximum loan limit on Michigan FHA loans, the goal of the program is to ensure that most people can qualify for the loan and purchase a house, regardless of where they choose to live. In most of Michigan, the baseline limit of $534,225 applies, but the maximum loan limit varies from location to location. Check the table below to see the full list of Michigan FHA loan limits for 2025.

Are You Eligible for an FHA Loan in MI?

You may be eligible for an FHA loan, if you:

• Have 2 years of steady employment, preferably with the same employer.
• Have had steady income (or increasing income) in the past two years.
• Have had less than two 30-day periods of late payments on your credit report.
• Have declared bankruptcy no less than two years ago and have maintained good credit since.
• Have not been a party in a foreclosure for at least three years and have maintained good credit since.
• Anticipate your mortgage payment will be equal to or less than 30% of your gross income.

Learn More About FHA Loan Requirements

Credit Requirements
Employment Requirements
Mortgage Insurance Premium Requirements

What Do You Need to Apply for an FHA Loan in MI?

Buyers must be able to provide the following information and documents as requested by lenders:

• The addresses of all your residences over the past two years.
• The names of your employers over the past two years.
• W2's for the past two years and current paycheck stubs.
• Your current gross monthly salary.
• Your Social Security Number.
• Names, addresses, and account numbers with balances on all checking and savings accounts.
• Addresses and loan information of any other real estate you owned.
• Self-employed individuals will need to provide personal tax returns for the past two years and a current income statement and balance sheet for the business.
• Students will need to provide evidence of enrollment. If you have student loans, you need to provide verification information.

Note: Facts and figures sourced from the latest statistics available at the time of this writing including data from the United States Department of Labor, United States Census Bureau and the United States Department of Housing and Urban Development.