USDA Loans

Have questions about income limits, property eligibility, or zero-down options? We’ll walk you through the details and show you what’s possible.

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What is a USDA Loan?

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.

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USDA LOAN KEY REQUIREMENTS

  • Minimum Credit Score: 620
  • Minimum Down Payment: 0%
  • Loan Limits in Michigan: No max loan limit — it’s based on your eligibility & debt-to-income ratio
  • Mortgage Insurance: Not required
  • Property Types: Single Family, Owner Occupied
  • Property Limits: Rural areas only, no working farms, and appraisal must meet USDA standards
  • Income Limits: In 2026, the limit for 1-4 people is $110,650 & the limit for 5+ people is $182,550 (for the entire household)

Benefits & Things to Consider with USDA Loans

USDA Loan Basics

What is a Home Credit?

A home credit is a financial benefit that helps reduce the upfront costs of buying a home. In this case, the Heart & Home Project provides eligible buyers with a $500 credit that can be applied toward closing costs when purchasing a home with Treadstone.

Closing costs can include expenses like appraisal fees, title work, underwriting fees, and other costs associated with finalizing your mortgage. A home credit helps lower the amount of cash needed at closing, making the homebuying process more accessible and manageable.

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Current USDA Loan Rates

USDA Loans are known for offering competitive interest rates, often comparable to or lower than many conventional options. Because the loan is backed by the U.S. Department of Agriculture, lenders can offer strong pricing that helps keep monthly payments affordable.

When paired with $0 down financing and fixed-rate options, USDA Loans are designed to support long-term stability and budget-friendly homeownership.

Details

• Valid for home purchases or refinances in Michigan (including debt consolidation refinances)

• Can be combined with down payment assistance or low/zero down payment programs

• Complimentary budget analysis available if you’re not quite ready to buy yet

• Cannot be combined with any other closing cost promotion

Check the USDA Eligibility Map

 
  • Eligible area
  • Not eligible
Loading map…

Boundaries from the USDA Rural Development Single Family Housing ineligible-areas layer, effective July 25, 2023. Property location is one requirement; household income limits and other program rules also apply. Viewing this map is not a final determination of eligibility by Rural Development. View the official USDA eligibility map.

How to Check Your USDA Eligibility on a Map

Using our USDA location eligibility tool, please type in your desired address or coordinates to get an instant answer on its eligibility, based on our most recent data pulled from Rural Development. 

More Resources

Michigan USDA
Eligibility Map

READ MORE

USDA Loans &
Fixer Uppers

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USDA Appraisals
& Inspections

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USDA Loan FAQ

Many rural and suburban areas qualify, including parts of Kent, Barry, Allegan, Newaygo, and Mecosta counties.

CHECK ELIGIBILITY HERE  

Large urban zones like downtown Grand Rapids, Lansing, and Detroit are typically ineligible.

Yes. For 2026, household income limits are:

  • 1–4 people: $110,650
  • 5+ people: $182,550

* Exact limits depend on county and household size.

If your adjusted gross income exceeds the local USDA limit, you may not qualify. A Treadstone loan officer can help calculate it.

No, but there may be specific closing costs and loan fees due at closing.

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.

* Subject to credit approval. Not all applicants will qualify for all benefits. The examples of potential savings figures represent estimates, scenarios, and approximations for educational purposes only and may be subject to change based on transaction specifics. Potential savings will not exceed $500 of value from Treadstone. This is not an offer to extend credit. Closing credit is only available for home purchases and refinances in Michigan. Subject to terms and conditions. Fees may apply. The duration of the promotion is at the discretion Treadstone Funding while supplies last.

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