FHA loans in Michigan

FHA loans are insured by the Federal Housing Administration, which means the government protects the lender if a borrower doesn't repay the loan. That protection lets FHA lenders approve buyers with lower credit scores and smaller down payments than many conventional programs allow.

Michigan-specific things to know

• FHA loan limits are set per county and updated annually, and Michigan counties don't all share the same limit. A loan officer can tell you the current limit for your specific county — connect with one here.
• FHA loans can often be paired with Michigan down payment assistance programs — see our down payment assistance page.
• The home must pass an FHA appraisal confirming it meets minimum property standards, in addition to a standard home inspection (which is separate and still strongly recommended).

Key points

• Generally more flexible credit score requirements than conventional loans.
• Requires both an upfront and an ongoing mortgage insurance premium (MIP), which — unlike conventional PMI — often lasts for the life of the loan unless you refinance.
• The home must meet FHA minimum property standards, confirmed through an FHA appraisal.
• Loan limits vary by county and are set annually — ask your lender for the current limit in your area.