FHA Loans in Royal Oak, Michigan
Buy a Royal Oak bungalow, colonial or condo with as little as 3.5% down. Tania Yatooma, a Swift Home Loans mortgage specialist with more than 10 years of mortgage experience, works just up Woodward in Birmingham and helps Royal Oak buyers get pre-approved, compare FHA with conventional, and find down payment help.
- 3.5% minimum down
- Flexible credit
- Gift funds allowed
- Free pre-approval
Check Your FHA Options
Tell Tania about your Royal Oak home search. She'll reply personally, usually the same business day.
- Minimum down
- 3.5% (580+ credit)
- 2026 FHA limit
- $541,287 (1-unit, Oakland County)
- Down payment help
- Up to $10,000 via MSHDA
- Your mortgage specialist
- Tania Yatooma · 10+ yrs
A Smart Fit for Royal Oak Buyers
Royal Oak draws first-time buyers for its walkable downtown, Woodward Avenue restaurants, the Detroit Zoo and easy access to I-75 and I-696. Much of the city's housing stock is older brick bungalows and colonials, which makes a flexible loan program especially useful.
- Smaller down payment. Put 3.5% down instead of saving for 20%, and keep more cash for moving and repairs.
- Credit that's still being built. FHA guidelines are more forgiving of lower scores and past credit bumps than most conventional loans.
- Help from family. The full down payment can come from a documented gift.
- Older homes that need work. An FHA 203(k) loan rolls repair costs into your mortgage.
- Condos near downtown. FHA works for condos in approved projects. Tania can check approval before you write an offer.
FHA vs. Conventional: What It Takes to Qualify
A side-by-side look at the two most common choices for Royal Oak buyers. Tania will run both for your situation so you can see the real numbers.
| FHA loan | Conventional loan | |
|---|---|---|
| Minimum down payment | 3.5% with 580+ credit 10% with 500–579 | 3% for eligible first-time buyers; 5% typical |
| Credit flexibility | More flexible; scores from 500 considered | Generally 620+; best pricing at higher scores |
| Mortgage insurance | 1.75% upfront (usually financed) plus annual premium, typically 0.55% for 3.5% down | Monthly PMI if under 20% down; can be removed at 20% equity |
| 2026 loan limit (Oakland County, 1-unit) | $541,287 | $832,750 conforming |
| Gift funds for down payment | Yes, 100% of down payment | Yes, with some limits |
| Occupancy | Primary residence only | Primary, second home or investment |
| Renovation option | FHA 203(k) | Conventional renovation programs |
Guidelines summarized for general information and subject to change. Swift Home Loans' own credit and underwriting requirements may be stricter. Your actual eligibility depends on full application review.
Pair Your FHA Loan with Michigan Down Payment Assistance
The Michigan State Housing Development Authority (MSHDA) offers the MI 10K DPA: up to $10,000 toward your down payment and closing costs. It's a zero-interest second loan with no monthly payment, repaid only when you sell, refinance or pay off your first mortgage.
- Used with an MSHDA first mortgage, including FHA
- Minimum credit score and household income limits apply
- Sales price limits and a homebuyer education course are required
- Generally for first-time buyers, with exceptions in targeted areas
Program rules and funding change through the year. Tania will confirm what's available for your income and target price before you start shopping.
Check My EligibilityExample: $300,000 Royal Oak home with FHA
- Purchase price
- $300,000
- Down payment (3.5%)
- $10,500
- Base loan amount
- $289,500
- Upfront MIP (1.75%, financed)
- $5,066
- Annual MIP (0.55%), per month
- ≈ $133
- MSHDA MI 10K DPA could cover
- up to $10,000*
Illustration only, not a loan offer. Doesn't include closing costs, prepaids, taxes or insurance. *MSHDA requires a minimum contribution from the buyer, and assistance depends on eligibility and funding. Ask Tania for a personalized estimate.
Buy a Royal Oak Fixer-Upper and Finance the Repairs
Found a 1940s bungalow on a great street that needs a new kitchen or roof? An FHA 203(k) renovation loan combines the purchase price and repair costs into one mortgage with one closing, based on the home's value after improvements.
- Limited 203(k) for smaller, non-structural projects like kitchens, baths, flooring, windows, furnace or roof
- Standard 203(k) for larger renovations, including structural work, with a HUD consultant
- Same 3.5% minimum down payment as a regular FHA purchase
Your path to an FHA loan
- 10-minute callTalk through your budget, savings and timeline with Tania.
- Pre-approvalGet a pre-approval letter Royal Oak agents and sellers take seriously.
- Make an offerTania checks FHA appraisal and condo requirements up front, so there are no surprises.
- CloseClear updates from contract to keys, with a local mortgage specialist who answers her phone.
FHA Loan Questions from Royal Oak Buyers
How much do I need to put down on an FHA loan in Royal Oak, MI?
FHA loans require 3.5% down with a credit score of 580 or higher, or 10% down with a score between 500 and 579. On a $300,000 Royal Oak home, 3.5% down is $10,500. The down payment can come from savings, a documented gift from family, or an approved down payment assistance program such as MSHDA's MI 10K DPA.
What is the 2026 FHA loan limit in Royal Oak and Oakland County?
For 2026, the FHA loan limit for a single-family home in Oakland County, which includes Royal Oak, is $541,287. Higher limits apply to two- to four-unit properties.
Can I use an FHA loan to buy and fix up an older Royal Oak bungalow?
Yes. An FHA 203(k) renovation loan lets you finance the purchase price and the cost of repairs or upgrades in one loan with one closing, based on the home's after-improvement value. It's a good fit for Royal Oak's many older bungalows and colonials that need a new roof, kitchen, bathroom or mechanicals.
Can I combine an FHA loan with Michigan down payment assistance?
Often, yes. MSHDA's MI 10K DPA program offers up to $10,000 as a zero-interest, deferred second loan that's repaid when you sell, refinance or pay off the first mortgage. It can be paired with an MSHDA FHA first mortgage. Credit score, income, sales price, homebuyer education and first-time buyer rules apply, so ask Tania to check your eligibility.
Can I buy a condo in Royal Oak with an FHA loan?
Yes, if the condominium project is FHA-approved or the unit qualifies for FHA single-unit approval. Tania can check a building's approval status before you make an offer.
Does an FHA loan have mortgage insurance?
Yes. FHA loans have an upfront mortgage insurance premium of 1.75% of the base loan amount, usually added to the loan, plus an annual premium paid monthly. For most buyers putting 3.5% down, the annual premium is 0.55% of the loan amount. Many homeowners later refinance into a conventional loan to remove it once they've built equity.
FHA Loans Near Royal Oak
Tania also helps FHA buyers in neighboring communities. See all loan programs and service areas.
Ready to Buy in Royal Oak with 3.5% Down?
Get a free FHA pre-approval and a side-by-side comparison from a local mortgage specialist with 10+ years of experience.