Rural Development Loans
The Michigan Rural Housing program is dedicated to the preservation of rural communities. We partner with Rural Development, a division of the US Department of Agriculture, to help home buyers throughout the state realize the American dream of home ownership. This program features 100% financing for qualified moderate-income families looking to purchase single-family homes. For borrowers with little or no cash, it’s ideal since no down payment and no funds are needed for closing.
Guaranteed Rural Development loans are insured by the USDA. If you are looking for a zero down mortgage in Michigan, the RD loan is a great option for first time home buyers and previous homeowners. RD does charge an upfront amount of mortgage insurance as well as monthly, however it is one of the lowest in the industry and the only “non-veteran” loan available with zero down payment.
- $0 down payment.
- Seller can pay up to 6% of the sale price towards your closing costs.
- Low monthly mortgage insurance (PMI).
- No loan limits.
- Geographic restrictions vary by County
- Income limits vary by County
- Gifts from immediate family members to cover closing costs is acceptable
- Condominiums must meet either Conventional or FHA guidelines for approval.
- Credit score minimum of 640.
- No foreclosure/short sales within the past 36 months.
- No bankruptcies in the past 36 months. Must have rebuilt credit.
- Must have 3 tradelines of credit. Can be a combination of traditional (reporting to credit bureaus) and non-traditional (ie, rent, utilities, etc).
- All court ordered judgments MUST be satisfied or have a satisfactory payment history for a minimum of 3 months.
- Cannot currently own adequate housing unless you sell it prior to closing on the new home.
- No investment properties allowed
- Only single-family residences or condos allowed. No “multi-family” dwellings.
Let’s Work On Getting You That Dream Home
Do you have a question? We can help. Contact us and we will be in touch to review your options. We guarantee your privacy.