Michigan FHA Loan

FHA-backed loans offer reduced risk for lenders, creating increased benefits for borrowers.
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What is a Michigan FHA Loan?

A Michigan FHA loan is simply Michigan's regional version of an FHA loan, a mortgage intended for the purchase of a primary residence guaranteed by the government via the Federal Housing Administration (FHA) or HUD, the Department of Housing and Urban Development. FHA loans are desirable because with government backing comes significantly reduced interest rates. Although the government isn't directly offering mortgages, third-party lending institutions are at much less risk with government backing and are thus happy to lower rates to open up alternative avenues to home ownership for qualifying applicants. Below, we at Online Loans have broken down the assorted information available across the web into a convenient need-to-know to make getting you FHA loan as simple as possible. You can use our mortgage calculator as well to get a better idea of the costs.


FHA Loan requirements vary state by state. In Michigan, it is expected that applicants will have a minimum credit score of 580. Similarly, applicants must be able to cover a minimum down payment of 3.5%. Applicants don't need to be US citizens, but they must be legal residents. Likewise, applicants must have held the same job for at least two years (this requirement can be waived by providing a satisfactory letter of explanation).

There are many kinds of FHA loans available to prospective applicants for a variety of circumstances, such as refinances, rehabilitation projects, credit building, and standard purchases. If you fear you won't meet the basic requirements to receive an FHA loan, or if you're simply on the hunt for more information, HUD has compiled resources for Michigan-based FHA applicants here.

Rates (%)

In the world of lending, there is never a guaranteed, set rate. Rates fluctuate in proportion to the risk an individual applicant represents to the lending institution in question. While each lending institution has its own sets of criteria for rate calculation, traditionally an applicant's credit score, credit history, and current and past income will weigh on the process (check out our definitive guide to rebuilding your credit). That being said, given that FHA loans are government-backed, the risk is inherently lower for lenders, and rates will reflect this.

Maximum ($) Limits - By County

Maximum loan limits vary county to county within Michigan. For a complete breakdown of loan limits by county and home type please consult the interactive table below. Download Formats: Excel (.xslx) & CSV