Median Sale Price
$293,956
Michigan statewide median — below the national $417,700 median
+5.4% YoYMichigan · FHA LoansFHA Loans in Michigan:
FHA Loans in Michigan:
Requirements, Limits & Assistance Programs
3.5%Min. down payment
580Min. credit score
$541,287FHA loan limit — every Michigan county
43%Max debt-to-income ratio
The short version
FHA in Michigan at a Glance
FHA loans are government-backed mortgages that let Michigan buyers put as little as 3.5% down with a credit score of 580 or higher.
3.5%
Min. down payment (580+ score)
10%
Down payment if score 500–579
1.75%
Upfront mortgage insurance premium (MIP)
FHA loans are insured by the Federal Housing Administration and originated by FHA-approved lenders like Intra-Mortgage. Michigan's affordability and its statewide MSHDA assistance make FHA a strong fit here — and Detroit stands out, with a city program offering up to $25,000 in down payment help. The one thing to plan for is Michigan's older housing stock, which the FHA appraisal scrutinizes.
Michigan-specific note: Every Michigan county uses the 2026 FHA one-unit limit of $541,287 — Michigan has no high-cost counties, so the same figure applies statewide, from Wayne (Detroit) and Kent (Grand Rapids) to Washtenaw (Ann Arbor). With a statewide median near $294,000, most buyers have comfortable room under the limit.
Michigan housing market
Market Snapshot
Michigan pairs Midwest affordability with rising prices — and one of the most generous city down payment programs in the country in Detroit.
Days on Market
33 days
Statewide average — competitive in Grand Rapids and Ann Arbor
StableHomes Sold
9,713
Statewide, May 2026 — a deep, active market
StableFHA Share (National)
17%
Of U.S. purchase loans are FHA — the flexible-credit path many MI buyers use
National avgMichigan's +5.4% year-over-year price growth is among the stronger figures in our footprint, and Grand Rapids and Ann Arbor are the most competitive metros. Detroit is a different story: prices are lower, the city's $25,000 down payment program is unusually generous, and older homes mean the FHA appraisal deserves attention up front.
Down payment help
Michigan First-Time Buyer Programs
These programs can be layered on top of an FHA loan to reduce your out-of-pocket costs at closing.
MSHDA MI 10K DPA
Michigan State Housing Development Authority
- Benefit
- Up to $10,000
- Structure
- Interest-free, non-amortizing second loan with no monthly payment. Must be paired with a MSHDA MI Home Loan. Repayment is deferred until sale, refinance, payoff of the first mortgage, or the home is no longer owner-occupied. Homebuyer education required.
Source: Michigan State Housing Development Authority · Verified Sep 8, 2026
Detroit Down Payment Assistance Program
City of Detroit Housing and Revitalization Department
- Benefit
- Up to $25,000
- Structure
- Grant toward down payment, closing costs, prepaids (including a rate buydown), and principal reduction. Total assistance cannot exceed 50% of the purchase price. First-time buyers (no ownership interest in the last three years) at or below 80% AMI who have lived in Detroit for the last 12 months (or lost a Detroit home to tax foreclosure between 2010 and 2016). $1,000 minimum borrower contribution. Housing payment-to-income ratio capped at 30% (Round 3, per March 2026 policy). Funding is first-come, first-served. Occupancy required for three years or the grant is repaid on a prorated basis.
Source: City of Detroit Housing and Revitalization Department · Verified Sep 8, 2026
Stack these programs. MSHDA MI 10K DPA is designed to sit on top of an FHA (or conventional) first mortgage from a participating lender — up to $10,000 in help can pair with the 3.5% FHA down payment. In Detroit, the city's program can add up to $25,000 more for qualifying residents who have lived in the city for the last 12 months. MSHDA generally wants a 640+ credit score, above FHA's 580 floor.
Real scenarios
Michigan FHA Borrower Profiles
Common buyer combinations we see in Michigan — and how FHA works for each.
Profile A
Long-term Detroit resident
Has lived in Detroit 12 months, buying a $185,000 home in the city. Credit 652, W-2 income. May combine the FHA 3.5% down payment, MSHDA MI 10K DPA, and the Detroit program (up to $25,000) — a stack that can bring cash-to-close very low. We confirm residency documentation early.
Detroit program eligibleStack MSHDA + city~40 day close
Profile B
First-time buyer, Grand Rapids
Competing for a $310,000 home in fast-moving Grand Rapids. Credit 698, stable income. FHA works, and MSHDA MI 10K DPA can add up to $10,000 — but in a competitive metro, a clean pre-approval is what wins. Comfortably below the $541,287 limit.
MSHDA eligibleGet pre-approved first30–40 day close
Profile C
Older-home buyer, Detroit / Flint
Buying a $150,000 pre-1950 home. FHA is available, but the appraisal will scrutinize lead paint (pre-1978), the roof, and mechanical systems. We flag likely repair items before the offer so the seller can address them — the most common reason an FHA deal on an older Michigan home slips.
Appraisal scrutinyRepairs before closing40–50 day close
Profile D
Self-employed buyer, Ann Arbor
2-year self-employed history, Schedule C income averaging $88,000/year after write-downs, credit 690. FHA accepts a 2-year average. Needs 2 years of tax returns, a year-to-date P&L, and business bank statements. Down payment: 3.5% (~$13,300 on a $380K home).
2-yr tax returns needed+7–10 day underwriting40–52 day close
Run the numbers
Michigan FHA Payment Estimator
Estimate your monthly payment including MIP — the piece most calculators leave out.
Michigan median: $293,956 · FHA limit: $541,287
Rates vary by credit score and lender
Monthly P&I
$1,872
Principal & interest
Monthly MIP
$130
Mortgage insurance premium (MIP)
Total Monthly
Talk to a loan officer$2,002
Before tax & insurance
Estimates only. Does not include property tax, homeowner's insurance, or HOA dues. MIP rate assumes LTV > 90% for loans ≥ 30 years. Not a commitment to lend.
Answers to real questions
Michigan FHA Loan FAQs
From the field
A Michigan Loan Officer's Take on FHA
"Michigan has two things going for FHA buyers that a lot of states don't: MSHDA statewide, and Detroit's program on top of it — up to $25,000 for long-term residents. Where we earn our keep is the appraisal. The housing stock is older, so we flag the roof, the paint, the mechanicals before the offer goes in. Handle that up front and the FHA close is smooth."
Katie Smith
VP of Operations & Senior Loan Officer, Intra-Mortgage — Licensed in FL, IN, OH, MIKatie is licensed across Michigan and works with buyers from Detroit and the surrounding metro to Grand Rapids and Ann Arbor. She specializes in helping first-time buyers stack MSHDA and city assistance with FHA — and in getting ahead of the appraisal on older Michigan homes.
What she watches for on Michigan FHA files:
- Property-condition flags on older homes — roof, lead paint, mechanicals
- Detroit program residency documentation (12 months in the city)
- Buyers at 580–639 who want MSHDA but need more credit to qualify
Sources & references
Where these figures come from
- 2026 FHA loan limits by county (every Michigan county at the $541,287 floor; no high-cost counties)U.S. Dept. of HUD
- 2026 conforming loan limit baseline ($832,750), which sets the FHA floorFederal Housing Finance Agency
- MSHDA MI Home Loan down payment assistance terms and eligibilityMichigan State Housing Development Authority
- MSHDA MI 10K DPAMichigan State Housing Development Authority
- Detroit Down Payment Assistance ProgramCity of Detroit Housing and Revitalization Department
MSHDA-Participating Lender
Access to Michigan's DPA programs
5.0 Google Rating
Verified borrower reviews
NMLS #2620605
Equal Housing Lender
Licensed in FL, IN, OH, MI
Multi-state mortgage guidance
Ready to move forward?
Talk to a Michigan FHA specialist
Get straight answers on limits, MSHDA and Detroit assistance, and what you actually need to close — no obligation.