USDA Loans

Homeownership may be closer than you think.

Low or no downpayment required

Flexible credit guidelines

Eligible properties across Michigan

Buy a home with a USDA Rural Loan.

A USDA rural loan can make buying a home more accessible with no down payment required for eligible borrowers and properties. Backed by the U.S. Department of Agriculture, these 30-year, fixed-rate mortgages are designed for qualifying homebuyers purchasing a primary residence in an eligible rural or suburban area.

You do not need to be a first-time homebuyer to qualify. Income limits, property requirements and other eligibility guidelines apply, and a Michigan First Mortgage Loan Officer can help you understand whether a USDA loan may fit your needs.

Benefits of a USDA Rural Loan

A USDA loan may help reduce some of the upfront financial barriers to buying a home. Depending on your eligibility and the property, benefits can include:

No down payment required
Competitive fixed interest rates
One 30-year repayment term
Financing for eligible closing costs and home repairs
Consideration of alternative credit histories
Seller contributions of up to 6% of the purchase price
No requirement to be a first-time homebuyer

USDA loans include an upfront guarantee fee and an annual fee. Your Mortgage Loan Officer can explain how these costs affect your loan and estimated monthly payment.

Who is eligible for a USDA Loan?

Eligibility is based on both the borrower and the property. In general:

The home must be located in a USDA-eligible area.
The home must be used as your primary residence.
Your household income must fall within the limit established for the property’s location and household size.
You must demonstrate the ability and willingness to repay the loan.
The property must meet USDA and applicable housing requirements.

USDA currently states that household income generally cannot exceed 115% of the area median household income. Actual eligibility depends on the property location, household and current program requirements.

What properties can be purchased with a USDA Loan?

USDA loans can be used to purchase several types of eligible primary residences, including:

Detached single-family homes
Attached homes
Condominiums
Homes in planned unit developments
Eligible modular or manufactured homes

Despite the program’s name, a home does not necessarily need to be located far from a city. Some suburban communities qualify based on USDA’s property eligibility guidelines, and over 97% of Michigan is eligible to take advantage of USDA financing.

Explore your USDA Loan options

You do not have to determine eligibility on your own. A Michigan First Mortgage Loan Officer can help you review the program requirements, explore eligible areas and compare a USDA loan with other mortgage options.