A USDA Rural Development loan, commonly referred to as a "USDA loan" or "RD Loan", will allow you to buy a home with no down payment. Yes 100 percent financing loans still exist, however, few people know about the benefits. The USDA zero down home loan may be the right solution for your next home purchase.
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By choosing a USDA Rural Housing Mortgage you will get some of the lowest interest rates available. Mortgage terms include a 15 year fixed rate mortgage for the lowest rates as well as a 30 year fixed mortgage for low payments.
See our new USDA Rural Development Loan Calculator to estimate payments!
For more information on a USDA Rural Development Loans, call 1-800-555-2098 or apply online today!
The USDA RD loan is one of the best no down payment mortgage loans that most families can use to buy a home in Michigan. The program is guaranteed by the USDA so banks and lenders have reduced risk when lending. This promotes low mortgage rates and flexible terms.
Qualifying for a USDA Rural Development loan is very similar to an FHA mortgage however there are two important requirements you must meet for income limits and rural home location. Learn about no down payment mortgage programs.
Zero down loans for First time home buyers
Rural housing loans are a great option for those buying their first home or people with no down payment so you can get into the home of your dreams with little or no money out of pocket. The interest rates are great which will allow you to keep your payments low.
USDA Loan Updates: We now offer zero down USDA Loans down to a 640 Credit Score!
USDA income limits and eligibility map
Before you start shopping for a home, call us to see if you can qualify for this preferred loan type. One main qualification is that the home must be in an eligible "Rural" area. Visit our USDA Rural Development eligibility map documentation. There are also maximum income limitations which must be bet. Visit the Rural Development Income Limits on USDA website to confirm eligibility. If you qualify, a USDA Rural Development Loan may be the best mortgage available!
The Michigan USDA Rural Development loan is a great loan option that allows home buyers to buy a home with no down payment and flexible mortgage terms. You may want to consider a RD Loan if you have had credit issues in the past and do not have money saved for a down payment. Beyond the down payment, RD loans have several other benefits including low mortgage insurance (PMI) in the form of a guarantee fee, low mortgage rates, and easier requirements than a conventional loan.
List of USDA loan Benefits
- No Down Payment Required
- Low Mortgage Insurance (PMI) with the Guarantee Fee
- Buy soon after bankruptcy
- Buy soon after foreclosure
- Low interest rates
- Low total mortgage payments
- Flexible qualification guidelines
When buying a home if you do not have a 20% down payment, most loans require private mortgage insurance (PMI) which adds to your monthly payment. USDA loans are different because they have a guarantee fee in place of PMI. The current guarantee fee is 1.00% Up Front and .5% annually which is substantially less than the 1.75% Up front and .85% annually for FHA loans (Effective October 1st 2016). This allows for lower overall mortgage payments.
What are the USDA mortgage rates?
As mentioned previously, the USDA guarantees monthly mortgage payments to mortgage lenders for this loan type. That allows banks and mortgage lenders to offer very low mortgage rates compared to conventional loans. As, you may guess, the lower the interest rate, the lower the payment.
What are the qualifications for a USDA Loan in Michigan?
Lastly, qualifying for a USDA Rural Development Loan is easier than conventional financing. You may be able to eligible buy a home with only 2 years following a bankruptcy and only 3 years after a foreclosure. Conventional financing requires 4 years after bankruptcy and 7 years after a foreclosure.
