FHA Mortgage Insurance Premiums:
FHA loans require all borrowers to have FHA Mortgage Insurance Premiums (MIPs), also known as Private Mortgage Insurance (PMI). This is additional insurance for the origination of the loan, which protects lenders from default. These premiums also exist in other loan types—your loan officer can accurately weigh your options.
Mortgage Insurance Premiums for FHA Loans change depending on the loan term, amount, and loan-to-value ratio.
Homebuyers with an FHA loan are required to place a minimum of 3.5% down. For comparison, conventional loans require 3-5% down, while USDA loans & VA loans require 0% down. Each loan program contains unique qualification requirements— the down payment is only one piece of the puzzle.
Maximum Loan Amounts:
The maximum loan amount for Michigan FHA loans in 2022 is $420,680 for single family homes/condominiums. Be sure your FHA loan financing remains below the limit!
If you have received, or plan to receive gift funds for a home down payment, FHA loans allow you to pay 100% of your down payment with gift funds. Gift funds can be sourced from your family, employer, an approved charity, or homebuyer program from the government.