FHA Loan Requirements, Limits, How to Apply and Best Lenders
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2023 FHA Loan Limits in Michigan

Updated on:
Content was accurate at the time of publication.

FHA loans, which are backed by the Federal Housing Administration (FHA), help homebuyers with less-than-perfect credit qualify. Although an FHA loan is often easier to get than a conventional home loan, there are limits buyers must be mindful of when searching for their dream home.

In Michigan, homebuyers can use an FHA loan to purchase a single-family home for up to $472,030 in 2023.

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Michigan FHA loan limits by county

County nameOne unitTwo unitThree unitFour unitMedian sale price
ALCONA$472,030$604,400$730,525$907,900$110,000
ALGER$472,030$604,400$730,525$907,900$124,000
ALLEGAN$472,030$604,400$730,525$907,900$225,000
ALPENA$472,030$604,400$730,525$907,900$112,000
ANTRIM$472,030$604,400$730,525$907,900$160,000
ARENAC$472,030$604,400$730,525$907,900$120,000
BARAGA$472,030$604,400$730,525$907,900$85,000
BARRY$472,030$604,400$730,525$907,900$200,000
BAY$472,030$604,400$730,525$907,900$115,000
BENZIE$472,030$604,400$730,525$907,900$299,000
BERRIEN$472,030$604,400$730,525$907,900$173,000
BRANCH$472,030$604,400$730,525$907,900$140,000
CALHOUN$472,030$604,400$730,525$907,900$140,000
CASS$472,030$604,400$730,525$907,900$179,000
CHARLEVOIX$472,030$604,400$730,525$907,900$250,000
CHEBOYGAN$472,030$604,400$730,525$907,900$250,000
CHIPPEWA$472,030$604,400$730,525$907,900$178,000
CLARE$472,030$604,400$730,525$907,900$80,000
CLINTON$472,030$604,400$730,525$907,900$215,000
CRAWFORD$472,030$604,400$730,525$907,900$120,000
DELTA$472,030$604,400$730,525$907,900$104,000
DICKINSON$472,030$604,400$730,525$907,900$95,000
EATON$472,030$604,400$730,525$907,900$215,000
EMMET$472,030$604,400$730,525$907,900$185,000
GENESEE$472,030$604,400$730,525$907,900$163,000
GLADWIN$472,030$604,400$730,525$907,900$119,000
GOGEBIC$472,030$604,400$730,525$907,900$108,000
GRAND TRAVERSE$472,030$604,400$730,525$907,900$299,000
GRATIOT$472,030$604,400$730,525$907,900$115,000
HILLSDALE$472,030$604,400$730,525$907,900$140,000
HOUGHTON$472,030$604,400$730,525$907,900$114,000
HURON$472,030$604,400$730,525$907,900$188,000
INGHAM$472,030$604,400$730,525$907,900$215,000
IONIA$472,030$604,400$730,525$907,900$293,000
IOSCO$472,030$604,400$730,525$907,900$120,000
IRON$472,030$604,400$730,525$907,900$116,000
ISABELLA$472,030$604,400$730,525$907,900$150,000
JACKSON$472,030$604,400$730,525$907,900$153,000
KALAMAZOO$472,030$604,400$730,525$907,900$198,000
KALKASKA$472,030$604,400$730,525$907,900$299,000
KENT$472,030$604,400$730,525$907,900$293,000
KEWEENAW$472,030$604,400$730,525$907,900$114,000
LAKE$472,030$604,400$730,525$907,900$72,000
LAPEER$472,030$604,400$730,525$907,900$309,000
LEELANAU$472,030$604,400$730,525$907,900$299,000
LENAWEE$472,030$604,400$730,525$907,900$168,000
LIVINGSTON$472,030$604,400$730,525$907,900$309,000
LUCE$472,030$604,400$730,525$907,900$76,000
MACKINAC$472,030$604,400$730,525$907,900$118,000
MACOMB$472,030$604,400$730,525$907,900$309,000
MANISTEE$472,030$604,400$730,525$907,900$130,000
MARQUETTE$472,030$604,400$730,525$907,900$165,000
MASON$472,030$604,400$730,525$907,900$140,000
MECOSTA$472,030$604,400$730,525$907,900$140,000
MENOMINEE$472,030$604,400$730,525$907,900$105,000
MIDLAND$472,030$604,400$730,525$907,900$170,000
MISSAUKEE$472,030$604,400$730,525$907,900$180,000
MONROE$472,030$604,400$730,525$907,900$193,000
MONTCALM$472,030$604,400$730,525$907,900$293,000
MONTMORENCY$472,030$604,400$730,525$907,900$103,000
MUSKEGON$472,030$604,400$730,525$907,900$160,000
NEWAYGO$472,030$604,400$730,525$907,900$130,000
OAKLAND$472,030$604,400$730,525$907,900$309,000
OCEANA$472,030$604,400$730,525$907,900$96,000
OGEMAW$472,030$604,400$730,525$907,900$151,000
ONTONAGON$472,030$604,400$730,525$907,900$70,000
OSCEOLA$472,030$604,400$730,525$907,900$150,000
OSCODA$472,030$604,400$730,525$907,900$81,000
OTSEGO$472,030$604,400$730,525$907,900$291,000
OTTAWA$472,030$604,400$730,525$907,900$293,000
PRESQUE ISLE$472,030$604,400$730,525$907,900$107,000
ROSCOMMON$472,030$604,400$730,525$907,900$128,000
SAGINAW$472,030$604,400$730,525$907,900$121,000
SANILAC$472,030$604,400$730,525$907,900$142,000
SCHOOLCRAFT$472,030$604,400$730,525$907,900$167,000
SHIAWASSEE$472,030$604,400$730,525$907,900$215,000
ST. CLAIR$472,030$604,400$730,525$907,900$309,000
ST. JOSEPH$472,030$604,400$730,525$907,900$150,000
TUSCOLA$472,030$604,400$730,525$907,900$129,000
VAN BUREN$472,030$604,400$730,525$907,900$170,000
WASHTENAW$472,030$604,400$730,525$907,900$330,000
WAYNE$472,030$604,400$730,525$907,900$309,000
WEXFORD$472,030$604,400$730,525$907,900$180,000

How are FHA loan limits determined?

The U.S. Department of Housing and Urban Development (HUD) sets FHA loan limits annually based on conforming loan limits, or the limits on conventional mortgages. Changes in FHA loan limits reflect the changes in the conforming loan limits, so when conforming loan limits increase, so do FHA loan limits.

In 2023, the minimum FHA loan limit – also called the “floor” – is $472,030, equal to 65% of conforming loan limits. However, in some high-cost parts of the country FHA loan limits equal to 150% of conforming loan limits. This is called the FHA “ceiling” and in 2023, is $1,089,300. No counties in Michigan exceed the FHA floor limit.

How to qualify for an FHA loan in Michigan

Many borrowers prefer FHA loans to conventional loans because of the flexible lending requirements. Generally, qualifying for an FHA is easier, so it is a great alternative when a conventional loan isn’t an option. Like with all loans, a review of the borrower’s credit, income and employment history is completed before the loan is approved.

To qualify, borrowers must meet the following FHA loan requirements:

  • Minimum credit score of 500: A minimum credit score of 500 qualifies borrowers for an FHA loan.
  • Minimum down payment of 3.5%: The minimum down payment is 3.5% for borrowers with a credit score of 580 or higher. The down payment is 10% for borrowers with a credit score between 500 and 579.
  • Debt-to-income ratio (DTI) of 43% or lower: Debt-to-income ratio measures a borrower’s ability to repay the mortgage. Borrowers with a DTI of 50% may still qualify depending on their credit scores.
  • FHA appraisal: An FHA-approved appraiser inspects the home and assesses its value and condition to ensure it meets the Property Acceptability Criteria.
  • Mortgage insurance: Mortgage insurance covers the lender’s cost in the event the home is foreclosed on. An upfront cost of 1.75% of the loan amount is paid by the borrower, as well as an annual premium ranging from 0.15% and 0.75%.
  • Occupancy: You must the home you purchase with an FHA loan must be your primary residence for at least 12 months.

Buying a multifamily property with an FHA loan

Borrowers interested in buying a multifamily home also have the option to use an FHA loan to make their purchase. However, you’ll have to live in one of the units for at least one year after purchase. And since the same requirements apply, those with a credit score of at least a 580 get access to a 3.5% down payment.

FHA lenders in Michigan

Here are a few options for FHA lenders in Michigan.

Lender nameLT ratingMinimum FHA credit score
Chase Mortgage5 starsNot disclosed
Better Mortgage5 stars620
Wells Fargo5 starsNot disclosed
Rocket Mortgage5 stars580
Bank of America5 starsNot disclosed

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