Michigan Rural Development Loan

Michigan Rural Development Loan2019-01-05T14:24:43-04:00

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The Mortgage 1 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, administered through the US Department of Agriculture, features 102% 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 offered by mortgage brokers and lenders and 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 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 (click here for Rural Development Eligibility Maps for Michigan).
  • Income limits vary by County (click here for income limits).
  • Gifts from immediate family members to cover closing costs is acceptable.


General Requirements

  • Credit score minimum of 640.
  • No previous mortgage loan late payment in the past 24 months.
  • No foreclosure/short sales within the past 36 months. Must have rebuilt credit.
  • 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.