What are Conventional Loans and Conforming Loans?

By definition, a Conventional Loan is any mortgage that’s not guaranteed or insured by the federal government. Michigan conventional loans may be either “conforming” and “non-conforming”, although ‘conventional loans’ generally refer to ‘conforming loans’. Therefore Michigan conventional loan limits are the same thing as Michigan conforming loan limits.

Michigan Conventional Loan Limits

What is the maximum amount that I can borrow?

Conventional loan limits in Michigan are determined by:

  • Michigan Conventional Loan LimitsMaximum LTV Ratio:  The maximum financing loan-to-value ratio for conventional mortgages is 80% – 97% of the appraised value of the home or its selling price, whichever is lower. Learn how to calculate loan-to-value.
  • Maximum Loan Amount: Conventional loan limits in Michigan are set at the floor amount of $424,100 across the entire state. Metro areas in MI with a conforming limit of $424,100 include Detroit, Lansing and Ann Arbor.

Search all Conventional Loan Limits in Michigan:

County Name
Area
1-Unit
2-Unit
3-Unit
4-Unit
ALCONANON-METRO$424,100$543,000$656,350$815,650
ALGERNON-METRO$424,100$543,000$656,350$815,650
ALLEGANHOLLAND, MI$424,100$543,000$656,350$815,650
ALPENAALPENA, MI$424,100$543,000$656,350$815,650
ANTRIMNON-METRO$424,100$543,000$656,350$815,650
ARENACNON-METRO$424,100$543,000$656,350$815,650
BARAGANON-METRO$424,100$543,000$656,350$815,650
BARRYGRAND RAPIDS-WYOMING, MI$424,100$543,000$656,350$815,650
BAYBAY CITY, MI$424,100$543,000$656,350$815,650
BENZIETRAVERSE CITY, MI$424,100$543,000$656,350$815,650
BERRIENNILES-BENTON HARBOR, MI$424,100$543,000$656,350$815,650
BRANCHCOLDWATER, MI$424,100$543,000$656,350$815,650
CALHOUNBATTLE CREEK, MI$424,100$543,000$656,350$815,650
CASSSOUTH BEND-MISHAWAKA, IN-MI$424,100$543,000$656,350$815,650
CHARLEVOIXNON-METRO$424,100$543,000$656,350$815,650
CHEBOYGANNON-METRO$424,100$543,000$656,350$815,650
CHIPPEWASAULT STE. MARIE, MI$424,100$543,000$656,350$815,650
CLARENON-METRO$424,100$543,000$656,350$815,650
CLINTONLANSING-EAST LANSING, MI$424,100$543,000$656,350$815,650
CRAWFORDNON-METRO$424,100$543,000$656,350$815,650
DELTAESCANABA, MI$424,100$543,000$656,350$815,650
DICKINSONIRON MOUNTAIN, MI-WI$424,100$543,000$656,350$815,650
EATONLANSING-EAST LANSING, MI$424,100$543,000$656,350$815,650
EMMETNON-METRO$424,100$543,000$656,350$815,650
GENESEEFLINT, MI$424,100$543,000$656,350$815,650
GLADWINNON-METRO$424,100$543,000$656,350$815,650
GOGEBICNON-METRO$424,100$543,000$656,350$815,650
GRAND TRAVERSETRAVERSE CITY, MI$424,100$543,000$656,350$815,650
GRATIOTALMA, MI$424,100$543,000$656,350$815,650
HILLSDALEHILLSDALE, MI$424,100$543,000$656,350$815,650
HOUGHTONHOUGHTON, MI$424,100$543,000$656,350$815,650
HURONNON-METRO$424,100$543,000$656,350$815,650
INGHAMLANSING-EAST LANSING, MI$424,100$543,000$656,350$815,650
IONIAIONIA, MI$424,100$543,000$656,350$815,650
IOSCONON-METRO$424,100$543,000$656,350$815,650
IRONNON-METRO$424,100$543,000$656,350$815,650
ISABELLAMOUNT PLEASANT, MI$424,100$543,000$656,350$815,650
JACKSONJACKSON, MI$424,100$543,000$656,350$815,650
KALAMAZOOKALAMAZOO-PORTAGE, MI$424,100$543,000$656,350$815,650
KALKASKATRAVERSE CITY, MI$424,100$543,000$656,350$815,650
KENTGRAND RAPIDS-WYOMING, MI$424,100$543,000$656,350$815,650
KEWEENAWHOUGHTON, MI$424,100$543,000$656,350$815,650
LAKENON-METRO$424,100$543,000$656,350$815,650
LAPEERDETROIT-WARREN-DEARBORN, MI$424,100$543,000$656,350$815,650
LEELANAUTRAVERSE CITY, MI$424,100$543,000$656,350$815,650
LENAWEEADRIAN, MI$424,100$543,000$656,350$815,650
LIVINGSTONDETROIT-WARREN-DEARBORN, MI$424,100$543,000$656,350$815,650
LUCENON-METRO$424,100$543,000$656,350$815,650
MACKINACNON-METRO$424,100$543,000$656,350$815,650
MACOMBDETROIT-WARREN-DEARBORN, MI$424,100$543,000$656,350$815,650
MANISTEENON-METRO$424,100$543,000$656,350$815,650
MARQUETTEMARQUETTE, MI$424,100$543,000$656,350$815,650
MASONLUDINGTON, MI$424,100$543,000$656,350$815,650
MECOSTABIG RAPIDS, MI$424,100$543,000$656,350$815,650
MENOMINEEMARINETTE, WI-MI$424,100$543,000$656,350$815,650
MIDLANDMIDLAND, MI$424,100$543,000$656,350$815,650
MISSAUKEECADILLAC, MI$424,100$543,000$656,350$815,650
MONROEMONROE, MI$424,100$543,000$656,350$815,650
MONTCALMGRAND RAPIDS-WYOMING, MI$424,100$543,000$656,350$815,650
MONTMORENCYNON-METRO$424,100$543,000$656,350$815,650
MUSKEGONMUSKEGON, MI$424,100$543,000$656,350$815,650
NEWAYGONON-METRO$424,100$543,000$656,350$815,650
OAKLANDDETROIT-WARREN-DEARBORN, MI$424,100$543,000$656,350$815,650
OCEANANON-METRO$424,100$543,000$656,350$815,650
OGEMAWNON-METRO$424,100$543,000$656,350$815,650
ONTONAGONNON-METRO$424,100$543,000$656,350$815,650
OSCEOLANON-METRO$424,100$543,000$656,350$815,650
OSCODANON-METRO$424,100$543,000$656,350$815,650
OTSEGONON-METRO$424,100$543,000$656,350$815,650
OTTAWAGRAND RAPIDS-WYOMING, MI$424,100$543,000$656,350$815,650
PRESQUE ISLENON-METRO$424,100$543,000$656,350$815,650
ROSCOMMONNON-METRO$424,100$543,000$656,350$815,650
SAGINAWSAGINAW, MI$424,100$543,000$656,350$815,650
SANILACNON-METRO$424,100$543,000$656,350$815,650
SCHOOLCRAFTNON-METRO$424,100$543,000$656,350$815,650
SHIAWASSEEOWOSSO, MI$424,100$543,000$656,350$815,650
ST. CLAIRDETROIT-WARREN-DEARBORN, MI$424,100$543,000$656,350$815,650
ST. JOSEPHSTURGIS, MI$424,100$543,000$656,350$815,650
TUSCOLANON-METRO$424,100$543,000$656,350$815,650
VAN BURENKALAMAZOO-PORTAGE, MI$424,100$543,000$656,350$815,650
WASHTENAWANN ARBOR, MI$424,100$543,000$656,350$815,650
WAYNEDETROIT-WARREN-DEARBORN, MI$424,100$543,000$656,350$815,650
WEXFORDCADILLAC, MI$424,100$543,000$656,350$815,650

Michigan conforming limits can change anytime. Check back often to ensure accuracy.

What factors determine if i’m eligible for a Conventional Loan in Michigan?

Conventional conforming loans follow the terms and conditions set forth by government sponsored enterprises (GSE’s) like Fannie Mae or Freddie Mac. To be eligible for a Conforming Loan in Michigan, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. A FICO credit score of 620 or above is generally required to obtain a conventional loan approval. You must also have enough income to pay your housing costs plus all additional monthly debt.

How much money will I need for the down payment and closing costs?

Conventional home loans require the home buyer to invest between 3% and 20% of the sales price towards the down payment and closing costs. If the sales price is $100,000 for example, the mortgage applicant must invest at least $3,000 – $20,000 to meet conventional mortgage down payment requirements, depending on the program.

Minimum Michigan Conventional Loan Down Payment:

Residence UsageFixed-Rate Mortgage (FRM)Adjustable-Rate Mortgage (ARM)
1 Unit Primary3% Down Payment10% Down Payment
2 Units Primary15% Down Payment25% Down Payment
3 Units Primary25% Down Payment35% Down Payment
4 Units Primary25% Down Payment35% Down Payment
1 Unit Second Home10% Down Payment20% Down Payment
1 Unit Investment15% Down Payment25% Down Payment
2 Units Investment25% Down Payment35% Down Payment
3 Units Investment25% Down Payment35% Down Payment
4 Units Investment25% Down Payment35% Down Payment

What property types are allowed for Conventional Conforming Mortgages?

MI Conventional Mortgage Loan RequirementsConventional mortgage guidelines allow you to purchase warrantable condos, planned unit developments, modular homes, manufactured homes, and 1-4 family residences. Conventional loans can be used to finance primary residences, second homes and investment property.

Learn more about conventional mortgages.

What types of mortgage and refinance programs do Conventional Loans offer in Michigan?

There are several varieties of standard home purchase, first-time home buyer and conventional refinance loans available in Michigan:

  • Conventional Purchase Loans – Conventional loans offer a variety of programs for applicants with good credit ratings to buy a home. Both 3% down mortgage and 5% down mortgage options are available, however 20% down is the minimum amount required to avoid private mortgage insurance.
  • Conventional Rate/Term Refinance: Conventional Rate/Term refinancing loans are for borrowers who currently have an FHA, VA, USDA or conventional fixed rate mortgage or ARM loan and wish to refinance into a conventional mortgage with a lower interest rate. If you’re a homeowners considering a stable, conventional fixed-rate mortgage, this program may also eliminate your mortgage insurance if you have at 20% equity in your home.  If not, Conventional 97% loan programs may also work for you.
  • Cash-Out Refinance: A Conventional Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.

What factors determine if I am eligible for a Conventional Refinance Loan?

To meet conventional refinance mortgage requirements in Michigan, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. You must be able to cover closing costs and have enough income to pay your monthly debt.

Conventional Loan Requirements

More Michigan Mortgage Limits

You may also want to visit these additional home loan resources before deciding on a mortgage program:

 

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