The 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 ZERO down payment for qualified moderate-income families looking to purchase single-family homes.
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.
- $0 down payment.
- Seller can pay up to 6% of the sale price towards your closing costs.
- 1% upfront mortgage insurance (financed into loan). Lower than FHA.
- Low monthly mortgage insurance (PMI). Lower than FHA. PMI payments with the Rural Development loan are paid for the life of the loan. Although you may refinance into a conventional loan later to remove the PMI if you have 20% equity.
- 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.
- 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.