Rural Development

Rural Development

USDA Rural Development Home Loans 

Buy Your New Home with a No Down Payment Mortgage Loan
As part of its rural development program, the US Department of Agriculture (USDA) issues low interest and no down payment mortgage loans to individuals with the greatest need. Its purpose is two-fold: one, to create thriving rural communities, and two, to assist families that don’t qualify for traditional mortgage financing to become homeowners. Like VA, the USDA guarantee enables participating local lenders to offer 100% financing with low mortgage rates. 

Rural Development Loan

Find out if you are eligible for a USDA home loan program for very low-income individuals and families. Qualification is based on income, family size and property location. We can also help you find the right lender and best mortgage rates.

Rural Development Loan Highlights

There is often a general misconception that the USDA loan programs are only for farmers and ranchers. As a result, not many prospective home buyers try to access this type of loan. In reality, the eligibility is based on your income and property location, not your occupation. 
Here 3 important points to take note of: 
  • 0% down: Being no down payment mortgage loans, you can get 100% financing for a qualifying home. However, you will have to pay a mortgage insurance premium for zero or low down payments.
  • Property location: A large section of the United States falls within what the USDA considers an eligible area for home loans. While metropolitan areas are typically excluded, select suburbs may qualify. Designed to promote homeownership in less-dense communities across the country, many designated rural areas are just outside major cities. 
  • Income requirements and occupancy: You must meet the household income limit and this includes the income of all individuals 18 years or older who will live in the home. The home must also be occupied as your primary residence. 

USDA Home Eligibility 

Does you home qualify? Or is your home in a qualified area? Click here to find out! (The link takes you to USDA home Eligibility page. You have to accept the terms and conditions on the page that opens. Once you do, it has an address line in the top bar. You input the address and search. A map will pop up and show the eligibility area in a colored area. If the home is not in the area you can drill own on the map to see the actual streets on the borders to see where you can look!)

Other Benefits of the USDA Home Loan Include:

  • Flexible credit guidelines: Homebuyers with less than perfect credit may qualify. 
  • Favorable loan terms: It is available in common fixed-rate terms like 30-year and 15-year mortgages.
  • Competitive interest rates: Often, these loans have some of the lowest mortgage rates because of the USDA guarantee.
  • Home repair: The Section 504 program provides loans to low-income homeowners to repair, improve or modernize their homes as well as grants to elderly low-income homeowners who need home modifications to minimize or eliminate health and safety hazards. 
(Note: Direct loan available with local RD office)

If you are a first-time homeowner who does not mind living outside the urban area, a USDA home loan might be ideal for you. At Dividend Mortgage, we offer conventional and government-backed loans with competitive mortgage rates for homeowners in Michigan. Let us help you explore your financing options and find the best fit.

Call 269-321-8950 or contact us online to set up a consultation for a USDA home loan.

Share by: