Michigan FHA Loan Requirements 2026
This guide to Michigan FHA loan requirements covers loan limits for every Michigan county, credit score and down payment requirements, MIP costs, and how FHA financing pairs with Michigan’s MSHDA assistance programs.
FHA Loan Limits by Michigan County (2026)
FHA loan limits are set by HUD and updated annually based on local median home prices. For 2026, every Michigan county — including the Detroit, Grand Rapids, and Ann Arbor metros — sits at the national floor, since HUD has not designated any Michigan county as high-cost.
| County | 1-Unit | 2-Unit | 3-Unit | 4-Unit |
|---|---|---|---|---|
| Wayne (Detroit) | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Oakland | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Macomb | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Kent (Grand Rapids) | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Washtenaw (Ann Arbor) | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Ingham (Lansing) | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Kalamazoo | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Genesee (Flint) | $541,287 | $693,050 | $837,700 | $1,041,125 |
| All other Michigan counties (75) | $541,287 | $693,050 | $837,700 | $1,041,125 |
Every Michigan county is at the national FHA floor. Unlike states with high-cost metro counties, all 83 Michigan counties share the same $541,287 limit for 2026, effective January 1, 2026 per HUD Mortgagee Letter 2025-23. Always confirm your exact county limit using HUD’s official FHA Mortgage Limits lookup tool before making an offer.
Michigan FHA Loan Requirements Overview
| Requirement | Standard FHA | Notes |
|---|---|---|
| Credit score | 580 (3.5% down); 500–579 (10% down) | Most MI lenders require 620+ |
| Down payment | 3.5% | Can combine with MI 10K DPA assistance |
| DTI ratio | Up to 57% with strong factors | 43% preferred |
| Primary residence | Required | Owner-occupied only |
| Property condition | Must meet FHA Minimum Property Standards | Michigan winters make heating system and roof condition important inspection points |
FHA Mortgage Insurance Premiums (MIP)
| MIP Type | Rate | On a $300,000 Loan |
|---|---|---|
| Upfront MIP (UFMIP) | 1.75% of loan amount | $5,250 (typically financed) |
| Annual MIP (monthly) | 0.55%/yr (30-yr, LTV 95%+) | ~$138/mo |
MIP cancellation: FHA MIP is permanent on loans originated after June 3, 2013, with less than 10% down payment. For Michigan buyers who put down 10% or more, MIP cancels after 11 years. Many Michigan borrowers refinance into a conventional loan once they reach 20% equity to eliminate MIP.
FHA vs. Conventional in Michigan
| Factor | FHA | Conventional |
|---|---|---|
| Min credit score | 580 | 620 |
| Down payment | 3.5% | 3–20% |
| Mortgage insurance | MIP (permanent with <10% down) | PMI (cancels at 80% LTV) |
| Max loan limit (statewide) | $541,287 | Conforming limit applies ($832,750) |
| MSHDA pairing | Ask lender — not published by loan type | Ask lender — not published by loan type |
| Best for | Lower credit, gift/assistance funds, first-time buyers | 680+ credit, plans to cancel PMI, stronger assets |
MSHDA + FHA Combination
Michigan’s MSHDA MI Home Loan is a common option for pairing state assistance with an FHA first mortgage. Here’s an illustrative example on a $300,000 purchase:
| Item | Amount |
|---|---|
| Purchase price | $300,000 |
| FHA down payment (3.5%) | $10,500 |
| MI 10K DPA assistance (flat amount) | Up to $10,000 |
| Remaining buyer contribution toward down payment | As little as $500, plus any closing costs not covered |
Unlike percentage-based assistance, MI 10K DPA is a fixed $10,000 regardless of loan size — which means it covers a larger share of the down payment on lower-priced Michigan purchases than on higher-priced ones. Confirm current terms and find a participating lender at michigan.gov/mshda.
