Prefer pastures over pavement? A USDA loan, also known as an RD loan or Section 502, is ideal for buyers who want to buy homes in rural areas—with zero down payment. While Michigan USDA loans often falls under the radar and are underutilized by big banks, we see their value for buyers and lead in the USDA lending process. It is backed and guaranteed by the United States Department of Agriculture. The RD/USDA loan offers 100% financing of the appraised value.
Besides VA loans, RD loans are the only 0% down option available, and is the only program available to non-military buyers.
USDA loans can include closing costs, prepaid/escrow items, and the RD guarantee fee. RD Loans are subject to income limits and geographic location eligibility.
If you’re a veteran interested in an RD loan, be sure to check out our VA mortgages as well.
There are many different financing options for a home purchase. As important as buying a home is, it’s important to use the correct tool in the toolbox. It’s the key to being a successful home owner! There is no loan type with a “one size fits all” label. Talk with a Loan Officer (at no cost or obligation to you!) to figure out the best approach for your situation. Our Loan Officers are savvy. They’ll give you a hand.
Aside from having the coolest mortgage staff on the planet… working with Treadstone on your mortgage in West Michigan gives you a distinct advantage in not only getting your offer accepted, but also in becoming a more successful and enlightened home owner.
If we could tell you right here, we most certainly would. Since loan rates fluctuate greatly day-to-day and week-to-week, our Loan Officers would love to give you an idea of what to expect on your loan.
Below is a graph of current loan rate trends for Michigan USDA loans. Loan rates vary between financing options, so rates may be different between FHA and USDA loans.
The answer to this one is easy! Give us a shout, and we’ll work with you to get the process started. To get started, we usually need proof of income, assets, and ID. We’d also love to know which type of property you’d like to buy! A pre-approval will make or break your offer, so don’t pass up on a strong pre-approval!
We invest in our clients! They are our passion. Home loans aren’t the only thing we do for our clients—we do a lot more.
To qualify, you’ll need to purchase a home in a location approved by the USDA, and the property must meet the USDA requirements. Additionally, the income limit for a family of 1-4 in Michigan is $110,650. For a family of 5 or more, it can be as high as $182,550. Income figures are determined specific to location and change frequently—our Loan Officers are able to provide additional details!
USDA Loans in Michigan require no down payment, and the borrower qualifications are more lenient than other loan programs. While USDA loans don’t require mortgage insurance, there are other fees (annual and up-front) that are required for all USDA/RD Loans. Remember, only certain properties and property types are eligible for a USDA/RD loan in Michigan.
Nothing! The “rural development” loan is offered by the United States Department of Agriculture. Both RD and USDA have become interchangeable names for describing this 0% down loan program.
