5.0 · 35 five-star Google reviews · Veteran-owned · Milford, Michigan · NMLS #2497854
McKenney
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FHA Loans · Michigan

The loan built for real life.

3.5% down. Credit that's forgiving of the past. A down payment that can be a gift. FHA is how most Michigan first-time buyers actually get keys — and as a wholesale broker, I shop your FHA loan across dozens of lenders instead of locking you into one bank's price.

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Rob McKenney · NMLS #23394 · 20+ years · thousands of families helped · 5.0★ on Google
3.5%
Down With 580+ Credit
$541,287
2026 Michigan FHA Limit (1-Unit)
6%
Max Seller-Paid Closing Costs
1–4
Units — Live In One, Rent The Rest
The Benefits

Why FHA is the workhorse of Michigan first purchases.

FHA isn't a consolation prize. It's a government-insured loan designed to put buyers with real lives — student loans, thin savings, a credit ding or two — into real houses.

3.5%

Down Payment

3.5% down with a 580+ credit score. On a $250,000 Michigan house, that's $8,750 — not the 20% your parents told you about.

100%

Of It Can Be a Gift

Every dollar of your down payment can come as a gift from family. FHA doesn't make you prove you saved it yourself.

580

Credit Score Floor

580+ gets you the 3.5% down tier. Scores from 500–579 can still work with 10% down. Rebuilt credit after a rough patch? FHA was built for that.

6%

Seller Can Pay Closing Costs

FHA lets the seller contribute up to 6% of the price toward your closing costs — double what conventional allows at low down payments. We negotiate it into the offer.

2–4

Units, Same 3.5% Down

Buy a duplex, triplex, or fourplex, live in one unit, and let the rent from the others help you qualify. The most underrated wealth move in Michigan.

203(k)

Fixer? Roll In The Rehab

The FHA 203(k) loan wraps purchase price and renovation budget into one mortgage. With Michigan's older housing stock, it turns rough listings into right houses.

Is It Your Loan?

FHA is probably your loan if…

Your credit took a hit and you've rebuilt. FHA pricing doesn't punish a 620 score the way conventional pricing does.

You have less than 5% saved. 3.5% down — and it can be gifted — beats waiting three more years to save 20% while prices climb.

Your debt-to-income is on the high side. FHA is more forgiving on DTI than conventional, especially with strong compensating factors.

You're past a bankruptcy or foreclosure. FHA's waiting periods are shorter — generally two years after a Chapter 7 discharge and three after a foreclosure, with documented recovery.

You want the seller to carry closing costs. Up to 6% in seller concessions gives us real room to structure your cash-to-close down.

You're eyeing a duplex. Owner-occupied 2–4 units with 3.5% down and rental income helping you qualify — conventional can't touch that combination.

Eligible for VA? Stop reading — your VA benefit beats FHA in almost every scenario. Zero down, no monthly mortgage insurance.

The Honest Part

Let's talk about mortgage insurance.

Every FHA loan carries mortgage insurance (MIP). Anyone who glosses over it is selling you something. Here's the actual math.

You pay 1.75% upfront — rolled into the loan, not out of your pocket at closing — plus an annual premium of roughly half a percent, built into the monthly payment. With the minimum down payment, MIP stays for the life of the loan.

But "life of the loan" doesn't mean life. It means until we refinance you out. Once your equity grows — and Michigan values have done a lot of that work lately — refinancing into conventional drops the MIP entirely.

You don't have to track any of that. Every FHA client goes on my Refi Watchlist: when the numbers say dropping MIP saves you real money, you get a text from me. That's the whole system.

FHA vs. Conventional, in one minute

Conventional usually wins when your credit is roughly 680+ and you can put 5% or more down — and its PMI cancels on its own at 20% equity.

FHA usually wins when your score is in the 580–670 range, your down payment is 3.5%, or your DTI runs high — FHA rates don't climb with lower scores the way conventional rates do.

You shouldn't have to guess. I run every buyer both ways and show you the side-by-side. You pick with real numbers in front of you.

FHA Questions

What Michigan buyers ask me most.

What credit score do I need for an FHA loan in Michigan?
FHA allows 3.5% down with a credit score of 580 or higher, and scores between 500 and 579 can still qualify with 10% down. Individual lenders layer their own requirements on top — and because we broker to dozens of wholesale lenders, a score that stops one lender often doesn't stop the loan. Don't rule yourself out before we've looked at your situation together.
How much do I really need for a down payment?
3.5% of the purchase price with a 580+ score — and every dollar of it can be a gift from family. Between gift funds and seller-paid closing costs (FHA allows the seller to contribute up to 6%), plenty of Michigan buyers get keys with far less out of pocket than they expected.
What is FHA mortgage insurance and does it ever go away?
FHA loans carry an upfront mortgage insurance premium of 1.75% (rolled into the loan, not out of pocket) plus an annual premium built into your monthly payment. With the minimum down payment it stays for the life of the loan — but that's not a life sentence. Once you've built enough equity, refinancing into a conventional loan drops it entirely. That's a conversation we'll have when the math works, not something you have to track yourself.
FHA or conventional — which is better for me?
It depends on your credit and your down payment. Strong credit with 5%+ down often wins with conventional; thinner credit or a smaller down payment usually favors FHA, because FHA pricing doesn't punish lower scores the way conventional pricing does. We run your scenario both ways and show you the side-by-side — you pick with real numbers in front of you.
Can I buy a duplex or fourplex with an FHA loan?
Yes — FHA allows 2-4 unit properties with the same 3.5% down as long as you live in one of the units. The rent from the other units can even help you qualify. It's one of the most underrated wealth-building moves available to Michigan first-time buyers.
Can I use an FHA loan for a house that needs work?
Yes. The FHA 203(k) renovation loan rolls the purchase price and repair costs into a single mortgage — one closing, one payment. With Michigan's older housing stock, it's often the difference between passing on a rough listing and turning it into the right house.

Let's find out what 3.5% down actually gets you.

A quote is free, there's no obligation, and we don't need to pull your credit to give you a realistic starting picture. Tell me your situation — we'll figure it out.

Get My FHA Quote → Call / Text (248) 491-8998
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