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Michigan FHA Loan

What are Michigan FHA Loans?
FHA stands for Federal Housing Authority. FHA Loans provide low-cost insured Home Mortgage Loans that suit a variety of purchasing options. Whether you're buying a home or want to refinance your mortgage, FHA loans might be right for you. If you're unsure about your credit rating, or have concerns about a down payment, FHA loans can give you piece of mind with super low closing costs and flexible payment options.


What factors determine if I am eligible for an FHA Loan in Michigan?
To be eligible for FHA Mortgage Loans, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be fairly considered. You must be able to make a down payment, cover closing costs and have enough income to pay your monthly debt.

What is the maximum amount that I can borrow?
The maximum amount for an FHA Mortgage is determined by:

Maximum Loan Amount in Michigan: The Maximum FHA Loan amount allowed for FHA Home Mortgages varies from county to county in Michigan. The highest maximum FHA Home Loan right now in Michigan is $271,050. The lowest maximum amount available in any county is $271,050. To see what the limit is in the county in which you're interested, please refer to the Michigan FHA Loan Limit chart at the bottom of this page.

Maximum financing: In Michigan, the maximum FHA financing will be 97.75% of the appraised value of the home or its selling price, whichever is lower.

How much money will I need for the down payment and closing costs?
Michigan FHA loans require the home buyer to invest at least 3.5% of the sales price in cash for the down payment and closing costs. If the sales price is $100,000 for example, the home buyer must invest at least $3,500. However, the home buyer can use gifts from family, funds from local, state or government agencies, or other sources for the down payment.

What property types are allowed for FHA Loans in Michigan?
While FHA Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and 1-4 family residences, in which the borrower intends to occupy one part of the multi-unit residence.

More information on FHA Mortgages

What types of refinance programs does FHA offer in Michigan?
There are three main types of FHA Refinance loans available in Michigan.

FHA Rate/Term Refinance
The FHA Rate/Term Refinance is for borrowers who currently have a conventional fixed rate or ARM mortgage and wish to refinance into an FHA Mortgage. This program helps borrowers who wish to have a stable, fixed rate FHA Insured Loan.

Cash-Out Refinance
An FHA Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.


Streamline Refinance

The FHA Streamline Refinance is designed to lower the interest rate on a current FHA House Loan or convert a current FHA adjustable rate mortgage into a fixed rate. An FHA Streamline Refinance can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification.

How much can I refinance in Michigan?
The maximum amount for an FHA loan is determined by

Maximum Loan Amount in Michigan
The maximum FHA Loan Amount allowed for FHA Mortgage Refinance varies from county to county in Michigan. The highest maximum FHA Home Refinance amount right now in Michigan is $271,050. The lowest maximum amount available in any county is $271,050. To see what the limit is in the county in which you're interested, please refer to the MI FHA Loan Limit chart at the bottom of this page.

Maximum financing: In Michigan, the maximum financing for an FHA Rate Term Refinance (No Cash-Out) or FHA Streamline Refinance Program (No Cash-Out) will be 97.75% of the appraised value of the home or its selling price, whichever is lower. The maximum financing for an FHA Cash-Out Refinance in Michigan is 85%.

What factors determine if I am eligible for an FHA Refinance Loan?
To be eligible for an FHA Mortgage Loan Refinance in Michigan, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be fairly considered. You must be able to make a down payment, cover closing costs and have enough income to pay your monthly debt.

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Michigan FHA Mortgage Limits by County

MSA Name County Name
One-Family
Two-Family
Three-Family
Four-Family
NON-METRO ALCONA $271,050 $347,000 $419,425 $521,250
NON-METRO ALGER $271,050 $347,000 $419,425 $521,250
ALLEGAN, MI (MICRO) ALLEGAN $271,050 $347,000 $419,425 $521,250
ALPENA, MI (MICRO) ALPENA $271,050 $347,000 $419,425 $521,250
NON-METRO ANTRIM $271,050 $347,000 $419,425 $521,250
NON-METRO ARENAC $271,050 $347,000 $419,425 $521,250
NON-METRO BARAGA $271,050 $347,000 $419,425 $521,250
GRAND RAPIDS-WYOMING, MI (MSA) BARRY $271,050 $347,000 $419,425 $521,250
BAY CITY, MI (MSA) BAY $271,050 $347,000 $419,425 $521,250
TRAVERSE CITY, MI (MICRO) BENZIE $271,050 $347,000 $419,425 $521,250
NILES-BENTON HARBOR, MI (MSA) BERRIEN $271,050 $347,000 $419,425 $521,250
COLDWATER, MI (MICRO) BRANCH $271,050 $347,000 $419,425 $521,250
BATTLE CREEK, MI (MSA) CALHOUN $271,050 $347,000 $419,425 $521,250
SOUTH BEND-MISHAWAKA, IN-MI (MSA) CASS $271,050 $347,000 $419,425 $521,250
NON-METRO CHARLEVOIX $271,050 $347,000 $419,425 $521,250
NON-METRO CHEBOYGAN $271,050 $347,000 $419,425 $521,250
SAULT STE. MARIE, MI (MICRO) CHIPPEWA $271,050 $347,000 $419,425 $521,250
NON-METRO CLARE $271,050 $347,000 $419,425 $521,250
LANSING-EAST LANSING, MI (MSA) CLINTON $271,050 $347,000 $419,425 $521,250
NON-METRO CRAWFORD $271,050 $347,000 $419,425 $521,250
ESCANABA, MI (MICRO) DELTA $271,050 $347,000 $419,425 $521,250
IRON MOUNTAIN, MI-WI (MICRO) DICKINSON $271,050 $347,000 $419,425 $521,250
LANSING-EAST LANSING, MI (MSA) EATON $271,050 $347,000 $419,425 $521,250
NON-METRO EMMET $271,050 $347,000 $419,425 $521,250
FLINT, MI (MSA) GENESEE $271,050 $347,000 $419,425 $521,250
NON-METRO GLADWIN $271,050 $347,000 $419,425 $521,250
NON-METRO GOGEBIC $271,050 $347,000 $419,425 $521,250
TRAVERSE CITY, MI (MICRO) GRAND TRAVERSE $271,050 $347,000 $419,425 $521,250
ALMA, MI (MICRO) GRATIOT $271,050 $347,000 $419,425 $521,250
NON-METRO HILLSDALE $271,050 $347,000 $419,425 $521,250
HOUGHTON, MI (MICRO) HOUGHTON $271,050 $347,000 $419,425 $521,250
NON-METRO HURON $271,050 $347,000 $419,425 $521,250
LANSING-EAST LANSING, MI (MSA) INGHAM $271,050 $347,000 $419,425 $521,250
GRAND RAPIDS-WYOMING, MI (MSA) IONIA $271,050 $347,000 $419,425 $521,250
NON-METRO IOSCO $271,050 $347,000 $419,425 $521,250
NON-METRO IRON $271,050 $347,000 $419,425 $521,250
MOUNT PLEASANT, MI (MICRO) ISABELLA $271,050 $347,000 $419,425 $521,250
JACKSON, MI (MSA) JACKSON $271,050 $347,000 $419,425 $521,250
KALAMAZOO-PORTAGE, MI (MSA) KALAMAZOO $271,050 $347,000 $419,425 $521,250
TRAVERSE CITY, MI (MICRO) KALKASKA $271,050 $347,000 $419,425 $521,250
GRAND RAPIDS-WYOMING, MI (MSA) KENT $271,050 $347,000 $419,425 $521,250
HOUGHTON, MI (MICRO) KEWEENAW $271,050 $347,000 $419,425 $521,250
NON-METRO LAKE $271,050 $347,000 $419,425 $521,250
WARREN-TROY-FARMINGTON HILLS, MI METROPO LAPEER $271,050 $347,000 $419,425 $521,250
TRAVERSE CITY, MI (MICRO) LEELANAU $271,050 $347,000 $419,425 $521,250
ADRIAN, MI (MICRO) LENAWEE $271,050 $347,000 $419,425 $521,250
WARREN-TROY-FARMINGTON HILLS, MI METROPO LIVINGSTON $271,050 $347,000 $419,425 $521,250
NON-METRO LUCE $271,050 $347,000 $419,425 $521,250
NON-METRO MACKINAC $271,050 $347,000 $419,425 $521,250
WARREN-TROY-FARMINGTON HILLS, MI METROPO MACOMB $271,050 $347,000 $419,425 $521,250
NON-METRO MANISTEE $271,050 $347,000 $419,425 $521,250
MARQUETTE, MI (MICRO) MARQUETTE $271,050 $347,000 $419,425 $521,250
NON-METRO MASON $271,050 $347,000 $419,425 $521,250
BIG RAPIDS, MI (MICRO) MECOSTA $271,050 $347,000 $419,425 $521,250
MARINETTE, WI-MI (MICRO) MENOMINEE $271,050 $347,000 $419,425 $521,250
MIDLAND, MI (MICRO) MIDLAND $271,050 $347,000 $419,425 $521,250
CADILLAC, MI (MICRO) MISSAUKEE $271,050 $347,000 $419,425 $521,250
MONROE, MI (MSA) MONROE $271,050 $347,000 $419,425 $521,250
NON-METRO MONTCALM $271,050 $347,000 $419,425 $521,250
NON-METRO MONTMORENCY $271,050 $347,000 $419,425 $521,250
MUSKEGON-NORTON SHORES, MI (MSA) MUSKEGON $271,050 $347,000 $419,425 $521,250
GRAND RAPIDS-WYOMING, MI (MSA) NEWAYGO $271,050 $347,000 $419,425 $521,250
WARREN-TROY-FARMINGTON HILLS, MI METROPO OAKLAND $271,050 $347,000 $419,425 $521,250
NON-METRO OCEANA $271,050 $347,000 $419,425 $521,250
NON-METRO OGEMAW $271,050 $347,000 $419,425 $521,250
NON-METRO ONTONAGON $271,050 $347,000 $419,425 $521,250
NON-METRO OSCEOLA $271,050 $347,000 $419,425 $521,250
NON-METRO OSCODA $271,050 $347,000 $419,425 $521,250
NON-METRO OTSEGO $271,050 $347,000 $419,425 $521,250
HOLLAND-GRAND HAVEN, MI (MSA) OTTAWA $271,050 $347,000 $419,425 $521,250
NON-METRO PRESQUE ISLE $271,050 $347,000 $419,425 $521,250
NON-METRO ROSCOMMON $271,050 $347,000 $419,425 $521,250
SAGINAW-SAGINAW TOWNSHIP NORTH, MI (MSA) SAGINAW $271,050 $347,000 $419,425 $521,250
NON-METRO SANILAC $271,050 $347,000 $419,425 $521,250
NON-METRO SCHOOLCRAFT $271,050 $347,000 $419,425 $521,250
OWOSSO, MI (MICRO) SHIAWASSEE $271,050 $347,000 $419,425 $521,250
WARREN-TROY-FARMINGTON HILLS, MI METROPO ST. CLAIR $271,050 $347,000 $419,425 $521,250
STURGIS, MI (MICRO) ST. JOSEPH $271,050 $347,000 $419,425 $521,250
NON-METRO TUSCOLA $271,050 $347,000 $419,425 $521,250
KALAMAZOO-PORTAGE, MI (MSA) VAN BUREN $271,050 $347,000 $419,425 $521,250
ANN ARBOR, MI (MSA) WASHTENAW $271,050 $347,000 $419,425 $521,250
DETROIT-LIVONIA-DEARBORN, MI METROPOLITAN DIVISION WAYNE $271,050 $347,000 $419,425 $521,250
CADILLAC, MI (MICRO) WEXFORD $271,050 $347,000 $419,425 $521,250

Michigan's Top Cities:

Ann Arbor Michigan FHA Loans Battle Creek Michigan FHA Loans Canton Michigan FHA Loans
Clinton Michigan FHA Loans Dearborn Michigan FHA Loans Dearborn Heights Michigan FHA Loans
Detroit Michigan FHA Loans Flint Michigan FHA Loans Farmington Hills Michigan FHA Loans
Grand Rapids Michigan FHA Loans Kalamazoo Michigan FHA Loans Lansing Michigan FHA Loans
Livonia Michigan FHA Loans Pontiac Michigan FHA Loans Redford Michigan FHA Loans
Royal Oak Michigan FHA Loans Saginaw Michigan FHA Loans Rochester Hills Michigan FHA Loans
Shelby Michigan FHA Loans Southfield Michigan FHA Loans St. Clair Shores Michigan FHA Loans
Sterling Heights Michigan FHA Loans Taylor Michigan FHA Loans Troy Michigan FHA Loans
Warren Michigan FHA Loans Waterford Michigan FHA Loans West Bloomfield Michigan FHA Loans
Westland Michigan FHA Loans Wyoming Michigan FHA Loans
                                                                                                                                    

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 Why choose an FHA Home Loan?

  • Michigan FHA Loan Programs require a Low 3.5% down payment.
  • Non-occupant, co-borrower are permitted to qualify for an FHA Home Loan.
  • Michigan FHA Loan Income requirements use expanded qualifying ratios.
  • There are no prepayment penalties for FHA Mortgage Home Loans.
  • An Michigan FHA Loan is fully assumable.
  • FHA Mortgage Insurance has lower premiums.
  • FHA Loan Requirements allow for non-income qualifying, streamline refinance.
  • An FHA Home Mortgage is available in all areas of the country, provided a market exists for the property and the home meets HUD's minimum property standards.
  • An FHA Home Loan may be used to purchase or refinance a new or existing one to four family home in urban and rural areas, including manufactured homes on permanent foundations.
  • Michigan FHA Loan Terms are offered at periods of 15 or 30 years.

 FHA Refinance Programs

FHA Rate/Term Refinance
The FHA Rate/Term Refinance is for borrowers who currently have a conventional fixed rate or ARM mortgage and wish to refinance into an FHA Mortgage. This program helps borrowers who wish to have a stable, fixed rate HUD FHA Loan.

Cash-Out Refinance
An FHA Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.

FHA Streamline Refinance
The FHA Streamline Refinance is designed to lower the interest rate on a current FHA mortgage or convert a current FHA adjustable rate mortgage into a fixed rate. An FHA Streamline Refinance can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification.


 FHA Refinance Questions & Answers

What are the guidelines for an FHA Refinance?
If the borrower wishes to take cash out of the property, then the maximum financing amount is 85% of the appraised value, depending on the borrowers qualifications. If the borrower does not take cash out then the maximum financing will be either 98.75% or 97.75% of the appraised value of the home or the amount you are refinancing plus closing costs, whichever is lower.

Why should I consider refinancing into a FHA-insured mortgage?
FHA refinance mortgages do not come with prepayment penalties, have no teaser rates nor balloon payments. They are offered at market rate with terms up to 30 years and are fully amortized, meaning that you pay towards principal and interest every month.

What if I have a prepayment penalty and other refinancing costs and there isn’t enough equity in my home to refinance?
If you do not have sufficient equity in your home to add your prepayment penalty and/or other refinancing costs into your new HUD FHA Mortgage, then you should ask your lender to consider a second mortgage to pay the difference or a short payoff on your existing loan. Offering either of these options is at the discretion of the lender.

Does it matter that the value of my home is now less than what I still owe?
Not to The FHA, but your current lender will have to be willing to accept a short payoff on the existing loan OR to hold a second mortgage to make up the difference needed to pay off the existing mortgage and the home’s value.


FHA Mortgage   |   FHA Refinance   |   FHA LOAN REQUIREMENTS   |   FHA MORTGAGE CALCULATOR   |   FHA MORTGAGE RATES

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