FHA Loans in Michigan
The FHA loan limit in Michigan is $472,030 for a single-family home. FHA loans require just 3.5% down payment and accept credit scores as low as 580.
Michigan's FHA limits at the baseline are more than adequate for the state's affordable housing market. FHA loans are extremely popular in Michigan, accounting for a large share of first-time purchases in metro Detroit and Grand Rapids. The state's extensive inventory of affordable homes means the 3.5% FHA down payment often amounts to less than $7,000 — an accessible entry point for many buyers. However, Michigan's older housing stock means FHA appraisals frequently identify issues with roofs, furnaces, and foundation problems that must be addressed before closing.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: HUD, Zillow
FHA Loan Limit
$472,030
Min Down Payment
$16,521
3.5%
Est. Monthly Payment
$3,658
PITI + MIP
Min Credit Score
580
for 3.5% down
Monthly Payment Breakdown at FHA Limit
| Home Price | $472,030 |
| Down Payment (3.5%) | $16,521 |
| Loan Amount | $455,509 |
| Monthly Costs | |
| Principal & Interest (6.5%) | $2,879 |
| FHA Mortgage Insurance (MIP) | $209 |
| Property Tax | $452 |
| Homeowners Insurance | $118 |
| Total Monthly Payment | $3,658 |
* Estimated at 6.5% interest rate, 30-year fixed. MIP at 0.55% annual. Property tax at Michigan's average rate of 1.15%. Includes upfront MIP of 1.75% rolled into loan.
FHA Loan Requirements
Credit Score
580+ for 3.5% down payment. 500-579 requires 10% down.
Down Payment
Minimum 3.5% of purchase price. Can be a gift from family.
Debt-to-Income
Maximum 43% DTI ratio (up to 50% with compensating factors).
Property Requirements
Must be primary residence. FHA appraisal required (stricter than conventional).
Employment
2 years of steady employment history. Self-employed need 2 years of tax returns.
Mortgage Insurance
1.75% upfront MIP + 0.55% annual MIP. Required for life of loan (unless refinanced).
FHA vs Conventional in Michigan
| Feature | FHA | Conventional |
|---|---|---|
| Min Down Payment | 3.5% | 3-5% |
| Min Credit Score | 580 | 620 |
| Mortgage Insurance | Life of loan | Until 20% equity |
| Loan Limit (Michigan) | $472,030 | $766,550+ |
| Best For | Lower credit, small savings | Good credit, 20%+ down |
