USDA Loans for Michigan

What is a USDA Loan?

Prefer pastures over pavement? A USDA loan, also known as an RD loan, 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.

  • Property must be in an eligible location
  • Must be single-family, owner-occupied home
  • Income must be below USDA-set limits
  • Minimum FICO score of 640
  • Property cannot be a working farm
  • The property’s appraisal must meet USDA standards

USDA Loan Benefits & Things to Consider

USDA Loans Are Just Another Tool in the Toolbox

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.

Why Treadstone?

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.

What are USDA loan rates today?

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.

Whether you need a lender or a realtor, we can help!

Buying a Home With No Down Payment in Michigan

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.

FAQ About Rural Development Loans

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 $91,900. For a family of 5 or more, it can be as high as $121,300. 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.

 

Pre-approvals,
Puppies, & People!

  • Locally owned & operated means local street cred when trying to get your offer accepted.
  • Real people making decisions who are accountable to you, and on your side!
  • Mission & values that are transparent & common sense
  • Puppies, lunchtime yoga, and a rooftop deck that keep our employees excited to work on your loan.
  • We close on time, every time! 
  • Local appraisers & underwriters who understand the intricacies of the market
  • The highest customer reviewed mortgage company in Michigan