FHA Loans: What You Need to Know in 2022
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2022 FHA Loan Limits in Michigan

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Mortgages with backing from the Federal Housing Administration (FHA) feature less stringent requirements than conventional mortgages, and could help you afford a home in Michigan. The Michigan FHA loan limit for 2022 is $420,680.

Michigan FHA loan limits by county

County nameOne unitTwo unitsThree unitsFour unitsMedian sales price
ALCONA$420,680$538,650$651,050$809,150$100,000
ALGER$420,680$538,650$651,050$809,150$115,000
ALLEGAN$420,680$538,650$651,050$809,150$190,000
ALPENA$420,680$538,650$651,050$809,150$88,000
ANTRIM$420,680$538,650$651,050$809,150$154,000
ARENAC$420,680$538,650$651,050$809,150$74,000
BARAGA$420,680$538,650$651,050$809,150$87,000
BARRY$420,680$538,650$651,050$809,150$175,000
BAY$420,680$538,650$651,050$809,150$100,000
BENZIE$420,680$538,650$651,050$809,150$290,000
BERRIEN$420,680$538,650$651,050$809,150$160,000
BRANCH$420,680$538,650$651,050$809,150$126,000
CALHOUN$420,680$538,650$651,050$809,150$130,000
CASS$420,680$538,650$651,050$809,150$162,000
CHARLEVOIX$420,680$538,650$651,050$809,150$215,000
CHEBOYGAN$420,680$538,650$651,050$809,150$166,000
CHIPPEWA$420,680$538,650$651,050$809,150$88,000
CLARE$420,680$538,650$651,050$809,150$73,000
CLINTON$420,680$538,650$651,050$809,150$191,000
CRAWFORD$420,680$538,650$651,050$809,150$95,000
DELTA$420,680$538,650$651,050$809,150$90,000
DICKINSON$420,680$538,650$651,050$809,150$89,000
EATON$420,680$538,650$651,050$809,150$191,000
EMMET$420,680$538,650$651,050$809,150$177,000
GENESEE$420,680$538,650$651,050$809,150$145,000
GLADWIN$420,680$538,650$651,050$809,150$110,000
GOGEBIC$420,680$538,650$651,050$809,150$85,000
GRAND TRAVERSE$420,680$538,650$651,050$809,150$290,000
GRATIOT$420,680$538,650$651,050$809,150$95,000
HILLSDALE$420,680$538,650$651,050$809,150$127,000
HOUGHTON$420,680$538,650$651,050$809,150$90,000
HURON$420,680$538,650$651,050$809,150$114,000
INGHAM$420,680$538,650$651,050$809,150$191,000
IONIA$420,680$538,650$651,050$809,150$250,000
IOSCO$420,680$538,650$651,050$809,150$97,000
IRON$420,680$538,650$651,050$809,150$74,000
ISABELLA$420,680$538,650$651,050$809,150$130,000
JACKSON$420,680$538,650$651,050$809,150$142,000
KALAMAZOO$420,680$538,650$651,050$809,150$183,000
KALKASKA$420,680$538,650$651,050$809,150$290,000
KENT$420,680$538,650$651,050$809,150$250,000
KEWEENAW$420,680$538,650$651,050$809,150$90,000
LAKE$420,680$538,650$651,050$809,150$62,000
LAPEER$420,680$538,650$651,050$809,150$280,000
LEELANAU$420,680$538,650$651,050$809,150$290,000
LENAWEE$420,680$538,650$651,050$809,150$152,000
LIVINGSTON$420,680$538,650$651,050$809,150$280,000
LUCE$420,680$538,650$651,050$809,150$60,000
MACKINAC$420,680$538,650$651,050$809,150$131,000
MACOMB$420,680$538,650$651,050$809,150$280,000
MANISTEE$420,680$538,650$651,050$809,150$120,000
MARQUETTE$420,680$538,650$651,050$809,150$153,000
MASON$420,680$538,650$651,050$809,150$131,000
MECOSTA$420,680$538,650$651,050$809,150$130,000
MENOMINEE$420,680$538,650$651,050$809,150$94,000
MIDLAND$420,680$538,650$651,050$809,150$145,000
MISSAUKEE$420,680$538,650$651,050$809,150$165,000
MONROE$420,680$538,650$651,050$809,150$175,000
MONTCALM$420,680$538,650$651,050$809,150$250,000
MONTMORENCY$420,680$538,650$651,050$809,150$80,000
MUSKEGON$420,680$538,650$651,050$809,150$141,000
NEWAYGO$420,680$538,650$651,050$809,150$125,000
OAKLAND$420,680$538,650$651,050$809,150$280,000
OCEANA$420,680$538,650$651,050$809,150$91,000
OGEMAW$420,680$538,650$651,050$809,150$82,000
ONTONAGON$420,680$538,650$651,050$809,150$87,000
OSCEOLA$420,680$538,650$651,050$809,150$133,000
OSCODA$420,680$538,650$651,050$809,150$75,000
OTSEGO$420,680$538,650$651,050$809,150$170,000
OTTAWA$420,680$538,650$651,050$809,150$250,000
PRESQUE ISLE$420,680$538,650$651,050$809,150$85,000
ROSCOMMON$420,680$538,650$651,050$809,150$107,000
SAGINAW$420,680$538,650$651,050$809,150$111,000
SANILAC$420,680$538,650$651,050$809,150$127,000
SCHOOLCRAFT$420,680$538,650$651,050$809,150$139,000
SHIAWASSEE$420,680$538,650$651,050$809,150$191,000
ST. CLAIR$420,680$538,650$651,050$809,150$280,000
ST. JOSEPH$420,680$538,650$651,050$809,150$135,000
TUSCOLA$420,680$538,650$651,050$809,150$118,000
VAN BUREN$420,680$538,650$651,050$809,150$150,000
WASHTENAW$420,680$538,650$651,050$809,150$295,000
WAYNE$420,680$538,650$651,050$809,150$280,000
WEXFORD$420,680$538,650$651,050$809,150$165,000

How are FHA loan limits determined?

The U.S. Department of Housing and Urban Development (HUD) establishes FHA loan limits based on the limits for conventional mortgages, also called conforming loan limits.

The lower FHA limit, the FHA “floor,” applies to most of the country and is calculated as 65% of the conforming loan limit. The FHA “ceiling” is 150% of the conforming loan limit and applies only to high-cost areas.

Both types of loan limits are, at their crux, based on the average home sales price over the last year. For 2022, both loan limits and home prices increased by 18%.

How to qualify for an FHA loan in Michigan

FHA loan applicants should meet the following criteria to qualify for a mortgage in Michigan:

  • A mortgage amount less than the FHA loan limit: If the house you want to buy is more expensive than the local FHA loan limit allows, you could make a larger down payment to cover the difference.
  • A minimum 3.5% down payment: You may qualify for an FHA loan with a down payment as small as 3.5%, depending on your credit score.
  • A minimum 500 credit score: If you have a credit score of at least 580, your down payment can be as low as 3.5%. Homebuyers with scores between 500 and 579 may still qualify with a 10% down payment.
  • A debt-to-income (DTI) ratio of 43% or less: Your DTI ratio represents how much you spend on debt payments compared with how much you earn. FHA loans typically require a maximum 43% DTI. Some lenders may offer exceptions, however.
  • FHA home appraisal: You must get an FHA home appraisal in order to qualify for an FHA loan.
  • Mortgage insurance: You must have two types of mortgage insurance for an FHA mortgage: The annual mortgage insurance premium (MIP), which ranges from 0.45% to 1.05% of your mortgage amount, is divided by 12 and then added to your monthly mortgage payments, and the upfront mortgage insurance premium (UFMIP), which costs 1.75% of your loan amount and is typically rolled into your mortgage.
If you are a first-time homebuyer, be sure to check out Michigan’s first-time homebuyer programs.

Buying a multifamily property with an FHA loan

FHA loans allow buyers to purchase multifamily homes with up to four separate living spaces.  As long as you’re living in one of the units, you won’t need an investment property mortgage. The same FHA loan limits and requirements apply for multifamily properties, like getting an FHA home appraisal and having a minimum 3.5% down payment.

FHA lenders in Michigan

Here are five highly rated mortgage lenders that operate in Michigan. Click on their names to read a full review.

Lender nameLT ratingMinimum FHA credit score
Bank of America8 / 10Not disclosed
Fairway Independent Mortgage8 / 10600
BMO Harris Bank8 / 10580
Zillow Home Loans8 / 10580
BNC National Bank7 / 10Not disclosed

 

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