Michigan Rural Home Loans
Many people in rural Michigan are currently taking advantage of one of the best and most affordable home loan programs in the country, Michigan USDA loans. The Michigan USDA home loan program includes directs loans from the USDA as well as 100% loan guarantees from the federal government. These loan guarantees help to alleviate the risk many lenders face when borrowing large sums of money for home loans, while making it easier for hard working Michigan families to secure the finances they need to purchase a home. Some USDA Home Loans in Michigan even have subsidized interest rates, require low mortgage insurance and are one of the only home loan programs in the country that do not require a down payment.
Michigan USDA Home Loan Benefits
Besides offering low interest rates and mortgages that require absolutely no down payment, the Michigan USDA home loan program offers a number of other important benefits as well. These include:
- Flexible 30 year fixed term
- Closing costs can be financed into the overall amount of the loan
- No PMI Insurance
- Sellers can pay closing cost to offer extra incentive
- Past, discharge bankruptcies can be accepted
- Flexible credit guidelines
- 100% financing
- USDA home loans are designed specifically for low to middle income households
USDA Eligible Areas in Michigan
One surprising component about Michigan USDA home loans is that they are not limited to only rural properties. There are actually hundreds of homes in small Michigan towns and cities that may be USDA eligible. Depending on the local USDA field office’s own population guidelines, towns with up to 25,000 residents may be USDA eligible.
Currently, residents in all of Newaygo, Mason, and Oceana counties are eligible to participate in the USDA home loan program. Any area north of Giles road in Muskegon county are eligible, as well as those who live east of Hilton Park road. Other Michigan counties that have USDA eligible properties include Oakland, Kent, Kalamazoo, Jackson, Eaton, Monroe, Midland, as well as many more. Please visit the USDA rural development home page for more information on USDA eligible properties.
How To Qualify
To qualify for a Michigan USDA home loan you must meet certain property and income requirements in order to be eligible. First of all, your prospective home must be located within a USDA approved rural area. Secondly, you must be a U.S. citizen, qualified alien, or be legally admitted to the United States for permanent residence. Your adjusted annual household income must not exceed the moderate income limit established for that area. If your total household income is above 115% of the average median income of that particular area, you will not be able to qualify for a Michigan USDA home loan.
You must have an above average credit rating of at least 640 and show a reasonable willingness in your past credit history to pay back debts as they become due. Your total debt divided by your gross monthly income must be equal to, or less than 41%. USDA home loans are not eligible for mobile homes and your USDA home must be your primary residence and cannot be rented out to others.
