FHA loans are designed for borrowers who need flexibility — lower down payments, more forgiving credit requirements, and competitive rates. Perfect for first-time buyers and those rebuilding credit.
An FHA loan is a government-backed mortgage insured by the Federal Housing Administration, designed for borrowers with lower credit scores or smaller down payments. FHA loans require just 3.5% down with a credit score of 580+, or 10% down with scores from 500-579. They carry mortgage insurance for the loan's life but offer easier qualification than conventional financing.
One of the lowest down payment options available. On a $300,000 home, that's just $10,500 down — making homeownership accessible sooner.
FHA is more forgiving than conventional loans. Scores as low as 580 qualify for 3.5% down, and some borrowers with lower scores may still qualify with 10% down.
Your entire down payment can come from a gift — from family, an employer, or a qualified nonprofit. No personal savings required.
Already have an FHA loan? The streamline refinance lets you lower your rate with minimal paperwork and no appraisal required.
This is the single most common question we get from first-time buyers. The honest answer is: it depends on your credit score, down payment, and how long you'll keep the loan. Here's the framework.
Rule of thumb: If your credit is below 680 or your down payment is under 10%, FHA usually wins on total cost. If your credit is 740+ with 20%+ down, conventional almost always wins. The gray zone — 680-740 credit, 5-15% down — is where running the math matters. We do that math for every client at no charge before recommending a program.
FHA loan limits cap the maximum amount you can borrow under FHA. Limits vary by county and home type. Here are the 2026 limits for the most common Michigan markets.
Limits reflect HUD 2026 published values. If your purchase price exceeds the limit, FHA isn't available — we'll route you to conventional or jumbo financing instead.
FHA loans carry two types of mortgage insurance: an upfront premium and an annual premium. Both protect the lender if you default, and both are part of the trade-off for FHA's easier qualification.
Upfront MIP (UFMIP): 1.75% of your loan amount, paid at closing. On a $300,000 FHA loan that's $5,250 — almost always financed into the loan rather than paid out of pocket.
Annual MIP: 0.55% of the loan balance per year, billed monthly. On the same $300,000 loan that's $137/month at the start, declining as you pay down principal.
When MIP comes off: If you put 10% or more down, MIP drops off after 11 years. If less than 10%, MIP lasts the life of the loan — which is why many FHA borrowers refinance to conventional once they reach 20% equity, eliminating MIP entirely.
An FHA loan is a mortgage insured by the Federal Housing Administration. This insurance allows lenders to offer more favorable terms — lower down payments and more flexible credit requirements — than they could with conventional loans.
No. While FHA loans are popular with first-time buyers, they're available to anyone who meets the requirements. You can even use an FHA loan for a refinance.
FHA loans require both an upfront mortgage insurance premium (1.75% of the loan amount, usually rolled into the loan) and annual mortgage insurance. We'll show you exactly what this costs.
FHA loan limits vary by county. In most Michigan counties, the 2026 limit is $541,287 for a single-family home. Higher limits apply in certain areas.
The information on this page reflects current program guidance from the agencies below. For the most authoritative and up-to-date details, refer directly to these primary sources or speak with our team.
Express Home Loans, LLC (NMLS #2485075) is an independent mortgage broker and is not affiliated with, endorsed by, or acting on behalf of HUD, the VA, the FHA, the CFPB, Fannie Mae, Freddie Mac, MSHDA, or any government agency. Links are provided for reference only. Program terms and availability are subject to change and to lender and agency approval.