FHA loans
An FHA loan that opens the door.
FHA loans are backed by the Federal Housing Administration and are one of the most flexible mortgage programs in the country. They're especially useful for first-time buyers, buyers with lower credit scores, or buyers who need to put less than 20% down.
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, part of the U.S. Department of Housing and Urban Development (HUD). Because the FHA guarantees the loan, lenders can offer lower down payments and more forgiving credit requirements than a conventional mortgage.
FHA loans are for primary residences only — the borrower must live in the home. They are available as fixed-rate mortgages (most common) and as adjustable-rate mortgages.
Down payment and credit requirements
With a credit score of 580 or higher, FHA borrowers can put down just 3.5% of the purchase price. With a score between 500 and 579, borrowers may still qualify with 10% down. That flexibility is what makes FHA one of the top programs for first-time buyers in Detroit and across the states we serve.
FHA also allows the entire down payment and closing costs to come from gift funds — parents, relatives, or approved down payment assistance programs.
FHA mortgage insurance
FHA loans carry two types of mortgage insurance: an upfront premium (UFMIP) equal to 1.75% of the loan amount that is usually rolled into the loan, and an annual premium (MIP) paid monthly. On most FHA loans with less than 10% down, the annual MIP stays for the life of the loan.
Borrowers who want to remove FHA mortgage insurance later often refinance into a conventional loan once they have enough equity and credit history.
Key benefits
- Down payments as low as 3.5% with a 580 credit score
- Available with credit scores as low as 500 (with 10% down)
- Gift funds allowed for entire down payment
- Debt-to-income ratios up to 56.9% with compensating factors
- FHA 203k program lets you finance eligible home repairs into the loan
Who this loan fits best
- First-time homebuyers
- Buyers with credit scores between 580 and 680
- Buyers using gift funds or down payment assistance
- Borrowers with higher debt-to-income ratios
Estimate your monthly payment
FHA payment calculator
Estimate only. Actual rate, taxes, insurance, and mortgage insurance depend on your specific loan and property. Belong Lending confirms your exact payment at pre-approval.
Serving Detroit and surrounding Michigan communities
Belong Lending helps borrowers with FHA loans across Detroit, Troy, Southfield, Ann Arbor, Flint, Livonia, Warren, Sterling Heights, Farmington Hills, Novi, Rochester Hills, Dearborn, and beyond — plus additional coverage throughout Wayne County, Oakland County, Macomb County, Washtenaw County, Livingston County, Genesee County. We also lend on eligible properties in Ohio, Florida, Georgia, and Texas.
Frequently asked questions
What credit score do I need for an FHA loan?
You can qualify for an FHA loan with a credit score as low as 580 with a 3.5% down payment. Scores between 500 and 579 may qualify with a 10% down payment. Most Belong Lending FHA borrowers are in the 620–720 range.
How much down payment do I need for an FHA loan?
FHA requires 3.5% down with a credit score of 580 or higher, or 10% down with a credit score between 500 and 579. Down payment funds can come entirely from gifts, grants, or an approved down payment assistance program.
Does FHA mortgage insurance ever come off?
On most FHA loans, annual mortgage insurance stays for the life of the loan. The most common way to remove it is to refinance into a conventional loan once you have at least 20% equity and a qualifying credit profile.
Can I use an FHA loan for a second home or investment property?
No. FHA loans are for primary residences only — the borrower must live in the home. Investors and second-home buyers typically use conventional or DSCR loans instead.
What is the FHA loan limit in Michigan?
For 2026, the baseline FHA loan limit is $524,225 in most Michigan counties, including Wayne, Oakland, and Macomb. High-cost counties can exceed that limit. Belong Lending can confirm the current limit for your specific county.