Michigan FHA Loans at a Glance: just 3.5% down · FICO from 580 · statewide limit $541,287 · pairs with the MI 10K DPA loan · sub-national-median prices · NMLS #1826020
Michigan FHA Home Loans · Direct Lender Since 1998

FHA Loans Michigan

Buy a Michigan home with as little as 3.5% down and a credit score from 580. With home values below the national median and the auto/EV economy driving jobs, FHA is a powerful entry point – and it pairs with MSHDA’s MI 10K down-payment loan, now available statewide.

  • 3.5% down with a 580+ FICO (10% down from 500-579)
  • Add the MI 10K DPA loan – up to $10,000, 0% deferred
  • Uniform statewide FHA limit of $541,287 (one-unit)
  • Some of the strongest FHA entry-point value in the country
  • Gift funds welcome; seller can pay up to 6% of closing costs

Start My Michigan FHA Application →

Get Pre-Approved for a Michigan FHA Loan

Fast, friendly, no obligation.

Get Your Free Quote! No Credit Pull Required.

★ 3.5% down★ 580 credit OK★ MI 10K DPA★ Below-median prices★ First-time friendly★ Serving MI since 1998

Why an FHA loan works in Michigan

An FHA loan is a government-insured mortgage that helps Michigan buyers qualify with flexible credit, a low down payment and higher debt-to-income than conventional financing. With prices below the national median, 3.5% down goes a long way in Michigan.

Michigan pairs affordability with the auto and EV economy from Detroit to Grand Rapids. Whether you are buying your first home in Detroit or a place near Novi’s top schools, an FHA loan stacked with MSHDA’s MI 10K DPA gets you to closing with very little cash down. Start your application →

2026 Michigan FHA loan limits by county

FHA loan limits are set by county, but in 2026 every Michigan county uses the same one-unit floor – so your limit is simple statewide:

All Michigan counties (1-unit)$541,287 – uniform statewide, including Metro Detroit (Wayne, Oakland, Macomb, Livingston) and Washtenaw/Ann Arbor
2-unit properties$693,050
3-unit properties$837,700
4-unit properties$1,041,125

2026 one-unit FHA limits set annually by HUD; 2-4 unit limits are higher. We confirm the exact limit for your Michigan county before you write an offer.

Ready to see how much home you can buy in Michigan with 3.5% down? Get pre-approved today.
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Michigan FHA loan requirements (2026)

Minimum down payment3.5% with a 580+ credit score (10% down with a 500-579 score)
Minimum credit scoreFrom 580; we also work with buyers rebuilding credit
Mortgage insurance (MIP)1.75% upfront (financed into the loan) plus an annual MIP around 0.15%-0.55%, paid monthly
Debt-to-income (DTI)Generally up to 43%-50% with compensating factors and automated approval
Down-payment sourceYour own funds, gift funds from family, or eligible down-payment assistance
Seller concessionsThe seller can contribute up to 6% toward your closing costs
Property typesSingle-family, FHA-approved condos, townhomes, and 2-4 unit owner-occupied Michigan homes
OccupancyPrimary residence (you will live in the home)
Co-borrowersNon-occupant co-borrowers (e.g., a parent) are allowed to help you qualify

Michigan down payment assistance you can pair with FHA

Your FHA loan pairs with the Michigan State Housing Development Authority (MSHDA), whose flagship MI 10K DPA loan is now available statewide:

MI 10K DPA Loan

Up to $10,000 for down payment, closing costs and prepaids as a 0% interest, no-payment deferred second – repaid only when you sell, refinance or pay off.

MI Home Loan

MSHDA’s 30-year fixed first mortgage (works with FHA) that carries the MI 10K DPA.

Who qualifies

640+ credit, household income under the county limit, at least 1% of your own funds, and a homebuyer education course.

First-time – waived in Targeted Areas

First-time buyer required statewide, but waived in designated Targeted Areas (e.g., parts of Downriver).

Statewide in 2026

The MI 10K DPA is now offered across all of Michigan, not just select areas.

Gift funds & seller credits

Combine gift funds and up to 6% in seller credits with FHA and MSHDA help to buy with almost no cash.

Ask about the MI 10K DPA loan – up to $10,000 in down-payment help.
See If You Qualify

Assistance programs have income, price and funding limits, are first-come while funds last, and are subject to change and eligibility. We confirm what you qualify for.

First-time buyer, family, or 55+ mover – we have a Michigan FHA program for you.
Start My Application

Michigan FHA loan calculators

Run the numbers on your Michigan FHA loan in seconds. These estimators are for planning only – apply for your exact, personalized figures.

1. FHA monthly payment

Estimate your full monthly payment including FHA mortgage insurance.

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Total monthly payment
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Principal, interest & MIP

2. Down payment & cash to close

See your down payment and estimated cash after seller credits.

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Estimated cash to close
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Down payment amount

3. How much home can I afford?

Estimate your FHA price range from income and monthly debts.

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Estimated home price
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Max housing payment

4. FHA loan amount + MIP

See your base loan plus the 1.75% upfront MIP financed in.

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Total financed (with UFMIP)
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Base loan / 1.75% UFMIP

Estimates only and not a commitment to lend. FHA charges 1.75% upfront MIP (financed) plus a monthly annual premium (~0.55% here for illustration). Actual figures depend on your property, credit and qualification.

Add the MI 10K DPA loan to your FHA loan - check your eligibility.
See If I Qualify
Buy a Michigan home with an FHA loan - apply nowYour Michigan home is closer than you think →

Michigan FHA highlights

  • 3.5% down - keep more cash in your pocket
  • 580 credit accepted; flexible, common-sense underwriting
  • Gift funds & MSHDA help can cover your down payment
  • Buy a home, condo or up to a 4-unit you live in
  • Refinance later with an FHA Streamline - no appraisal needed

Get My FHA Pre-Approval →

Best Michigan places for families & top schools

Buying where the schools are strong protects your family and your home's value. These Michigan districts consistently earn top marks:

Northville (Oakland/Wayne)

Top-rated, charming district northwest of Detroit.

Novi (Oakland)

Highly rated, fast-growing suburb with strong schools.

Troy (Oakland)

Well-regarded district with diverse, family-friendly neighborhoods.

Rochester / Rochester Hills

Sought-after schools and downtown living in northern Oakland County.

Forest Hills (Grand Rapids)

One of west Michigan's best districts.

Okemos (Lansing)

Top-rated district near Michigan State University.

Best Michigan 55+ & active-adult communities

Michigan has a growing 55+ market, and FHA can finance a home in an age-restricted community (condos must be FHA-approved). Popular options include:

Del Webb / active-adult (Oakland & Macomb)

New-build 55+ neighborhoods in the northern Detroit suburbs.

Cook's Crossing & similar (Novi/Northville area)

Low-maintenance active-adult condos and ranch homes.

Active-adult sections (Grand Rapids)

55+ neighborhoods within west-Michigan master plans.

Waterford & Commerce Township communities

Lake-area active-adult options in Oakland County.

Epcon Courtyards (statewide)

Ranch-style 55+ neighborhoods across Michigan.

Condominium communities (metro Detroit)

FHA-approved 55+ condos with low upkeep.

Michigan cities we serve for FHA loans

As a direct FHA lender since 1998, we help buyers across every Michigan metro. A few of the cities where we finance FHA purchases and refinances:

  • Detroit
  • Grand Rapids
  • Warren
  • Sterling Heights
  • Ann Arbor
  • Lansing
  • Flint
  • Dearborn
  • Livonia
  • Troy
  • Kalamazoo
  • Rochester Hills
  • Novi
  • Farmington Hills
  • Southfield
  • Royal Oak
  • Wyoming
  • Dearborn Heights
  • Taylor
  • Pontiac

Do not see your city? Start your application → - we lend statewide across Michigan.

Start your Michigan FHA loan today

Whether it is your first home, a bigger place near great schools, or a fresh start in a 55+ community, we match you to the right FHA program and get you pre-approved fast - with as little as 3.5% down.

  • Same-week pre-approval
  • Down-payment assistance and gift funds welcome
  • Friendly, local Michigan guidance since 1998

Apply for My Michigan FHA Loan →

Apply for your Michigan FHA home loanGet pre-approved with 3.5% down →

Michigan housing & FHA outlook for 2027

What Michigan FHA buyers should watch heading into 2027:

Motor City affordability

Home values remain below the U.S. median, and Detroit's low median listing creates unusually strong FHA entry-point value.

Buyer-friendly Detroit

Inventory is up around 15% year over year with values expected to rise only 1-2% - room for FHA buyers to negotiate.

Grand Rapids & strong suburbs tighten

Affordability is firming as prices held up while rates stayed elevated - value hunting in established areas.

Steady, moderate growth

Statewide, expect stable growth rather than rapid appreciation, with rates the main drag on volume into 2027.

Outlook only, not a guarantee or financial advice. Market conditions change; we give you current, personalized numbers when you apply.

Michigan FHA loan programs

FHA Purchase

3.5% down to buy a Michigan home, condo or 2-4 unit you live in.

FHA Streamline Refinance

Lower your rate or payment with reduced documentation and no new appraisal required.

FHA 203(k) Renovation

Roll the purchase price and renovation costs into one FHA loan.

FHA Cash-Out Refinance

Tap your Michigan home equity up to FHA limits.

FHA Condo Loans

Financing for units in FHA-approved Michigan condominium projects.

Down-Payment Assistance

Pair your FHA loan with Michigan DPA and gift funds to buy with less cash.

How to get a Michigan FHA loan

Get pre-approved

Apply online in minutes and we confirm your budget, rate and down payment - with as little as 3.5% down.

Find your home

Shop with confidence in the Michigan community and school zone you want; your pre-approval makes your offer stronger.

Underwrite & appraise

We handle the FHA appraisal and approval - flexible on credit, gift funds and DTI.

Close & move in

Sign, get your keys, and start building equity in your Michigan home.

Michigan FHA loan FAQ

What are the 2026 FHA loan limits in Michigan?

In 2026, every Michigan county uses the same one-unit FHA limit of $541,287 - including all of Metro Detroit (Wayne, Oakland, Macomb, Livingston) and Washtenaw/Ann Arbor. No Michigan county exceeds the floor. Two-to-four unit limits are higher.

How does the MI 10K DPA loan work with FHA?

The MSHDA MI 10K DPA gives you up to $10,000 for down payment and closing costs as a 0% interest, no-payment deferred second, repaid only when you sell or refinance. It pairs with the MI Home Loan (an FHA-eligible first), needs 640+ credit and 1% of your own funds, and is now available statewide.

How much down payment do I need for an FHA loan in Michigan?

Just 3.5% of the purchase price with a credit score of 580 or higher (10% down if your score is 500-579). Your down payment can come from savings, a gift from family, or eligible down-payment assistance.

Can I use an FHA loan to buy a condo in Michigan?

Yes - the condominium project must be on the FHA-approved list, or we can request single-unit (spot) approval. We check your specific building.

Can I use an FHA loan as a first-time buyer in Michigan?

Absolutely - FHA is the most popular loan for first-time buyers thanks to 3.5% down, a 580 credit minimum and gift-fund allowance, and it pairs with the MSHDA MI 10K down-payment loan.

Is CambridgeHomeLoan.com a direct FHA lender?

Yes - we are a direct lender (NMLS #1826020) serving homebuyers since 1998, with friendly guidance from application to closing.

Apply for your Michigan FHA loan

Get pre-approved in minutes - 3.5% down, credit from 580, gift funds and down-payment assistance welcome. A direct FHA lender serving Michigan since 1998.

Get Pre-Approved for a Michigan FHA Loan

Fast, friendly, no obligation.

Get Your Free Quote! No Credit Pull Required.

Start My Application →

Serving Michigan homebuyers Since 1998!
© 2026 CambridgeHomeLoan.com  ·  NMLS #1826020  ·  4830 W Kennedy Blvd, Tampa, FL 33609  ·  (800) 826-5077  ·  Equal Housing Lender  ·  NMLS Consumer Access

Rates, terms, FHA loan limits and program guidelines are for 2026, subject to change, and depend on the property, credit and qualification. Not a commitment to lend. This is not a government agency. Equal Housing Lender.


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