Michigan USDA Loans

What are USDA Home Loans?

USDA stands for United States Department of Agriculture. A USDA Mortgage provides a low-cost insured home mortgage loan that suits a variety of options. A USDA mortgage is likely thebest home loan option if you want to purchase a home with no down payment. If you’re unsure about your credit rating, or have concerns about a down payment when you’re doing ahome loan comparison, USDA Rural Mortgage Loans can give you piece of mind with zero-down, super low closing costs and low monthly mortgage insurance.

What Types of Loans does USDA offer in Michigan?

Currently, there are two kinds of USDA Home Loans available in Michigan for single family households:

. USDA Guaranteed Rural Housing Loans
USDA Guaranteed Home Mortgage Loans are the most common type of USDA Loan in Michigan and allow for higher income limits and 100% financing for home purchases. USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area. Area income limits for this program can be viewed here. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.

. USDA Direct Rural Housing Loans
USDA Direct Housing Loans are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain homeownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to see area income limits for this program.

What factors determine if I am eligible for a USDA Loan in Michigan?

To be eligible for A USDA Rural Loan in Michigan, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. A 620 FICO credit score is required to obtain a USDA Rural Housing Loan approval through most lenders. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Guaranteed Loan income limits for your area can be found at here. Maximum USDA Direct Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.

What is the maximum amount that I can borrow?

The maximum amount for an USDA home loan is determined by:

Maximum Loan Amount: The is no set maximum loan amount allowed for USDA Rural Home Loans. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for your area can be found at here.

Maximum financing: The maximum USDA Rural Development Loan amount is 102% of the appraised value of the home (100% plus the 2% USDA RD Loan guarantee fee).

How much money will I need for the down payment and closing costs?

USDA Rural Development Mortgage Loans require no down payment and they allow for the closing costs to be included in the loan amount (appraisal permitting).

What property types are allowed for USDA Rural Loan Mortgages?

While USDA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.

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Additional lender offers.

Michigan USDA Loan Adjusted Maximum Income Limits by County
Updated 05/01/2012

County Name
1-4 Person Households
(Guaranteed Loans)
5-8 Person Households 
(Guaranteed Loans)
NON-METRO
ALCONA
$73,600
$97,150
NON-METRO
ALGER
$73,600
$97,150
ALLEGAN, MI (MICRO)
ALLEGAN
$73,600
$97,150
ALPENA, MI (MICRO)
ALPENA
$73,600
$97,150
NON-METRO
ANTRIM
$73,600
$97,150
NON-METRO
ARENAC
$73,600
$97,150
NON-METRO
BARAGA
$73,600
$97,150
GRAND RAPIDS-WYOMING, MI (MSA)
BARRY
$73,600
$97,150
BAY CITY, MI (MSA)
BAY
$73,600
$97,150
TRAVERSE CITY, MI (MICRO)
BENZIE
$73,600
$97,150
NILES-BENTON HARBOR, MI (MSA)
BERRIEN
$73,600
$97,150
COLDWATER, MI (MICRO)
BRANCH
$73,600
$97,150
BATTLE CREEK, MI (MSA)
CALHOUN
$73,600
$97,150
SOUTH BEND-MISHAWAKA, IN-MI (MSA)
CASS
$73,600
$97,150
NON-METRO
CHARLEVOIX
$73,600
$97,150
NON-METRO
CHEBOYGAN
$73,600
$97,150
SAULT STE. MARIE, MI (MICRO)
CHIPPEWA
$73,600
$97,150
NON-METRO
CLARE
$73,600
$97,150
LANSING-EAST LANSING, MI (MSA)
CLINTON
$73,600
$97,150
NON-METRO
CRAWFORD
$73,600
$97,150
ESCANABA, MI (MICRO)
DELTA
$73,600
$97,150
IRON MOUNTAIN, MI-WI (MICRO)
DICKINSON
$73,600
$97,150
LANSING-EAST LANSING, MI (MSA)
EATON
$73,600
$97,150
NON-METRO
EMMET
$73,600
$97,150
FLINT, MI (MSA)
GENESEE
$73,600
$97,150
NON-METRO
GLADWIN
$73,600
$97,150
NON-METRO
GOGEBIC
$73,600
$97,150
TRAVERSE CITY, MI (MICRO)
GRAND TRAVERSE
$73,600
$97,150
ALMA, MI (MICRO)
GRATIOT
$73,600
$97,150
NON-METRO
HILLSDALE
$73,600
$97,150
HOUGHTON, MI (MICRO)
HOUGHTON
$73,600
$97,150
NON-METRO
HURON
$73,600
$97,150
LANSING-EAST LANSING, MI (MSA)
INGHAM
$73,600
$97,150
GRAND RAPIDS-WYOMING, MI (MSA)
IONIA
$73,600
$97,150
NON-METRO
IOSCO
$73,600
$97,150
NON-METRO
IRON
$73,600
$97,150
MOUNT PLEASANT, MI (MICRO)
ISABELLA
$73,600
$97,150
JACKSON, MI (MSA)
JACKSON
$73,600
$97,150
KALAMAZOO-PORTAGE, MI (MSA)
KALAMAZOO
$73,600
$97,150
TRAVERSE CITY, MI (MICRO)
KALKASKA
$73,600
$97,150
GRAND RAPIDS-WYOMING, MI (MSA)
KENT
$73,600
$97,150
HOUGHTON, MI (MICRO)
KEWEENAW
$73,600
$97,150
NON-METRO
LAKE
$73,600
$97,150
WARREN-TROY-FARMINGTON HILLS, MI METROPO
LAPEER
$73,600
$97,150
TRAVERSE CITY, MI (MICRO)
LEELANAU
$73,600
$97,150
ADRIAN, MI (MICRO)
LENAWEE
$73,600
$97,150
WARREN-TROY-FARMINGTON HILLS, MI METROPO
LIVINGSTON
$92,000
$121,450
NON-METRO
LUCE
$73,600
$97,150
NON-METRO
MACKINAC
$73,600
$97,150
WARREN-TROY-FARMINGTON HILLS, MI METROPO
MACOMB
$73,600
$97,150
NON-METRO
MANISTEE
$73,600
$97,150
MARQUETTE, MI (MICRO)
MARQUETTE
$73,600
$97,150
NON-METRO
MASON
$73,600
$97,150
BIG RAPIDS, MI (MICRO)
MECOSTA
$73,600
$97,150
MARINETTE, WI-MI (MICRO)
MENOMINEE
$73,600
$97,150
MIDLAND, MI (MICRO)
MIDLAND
$73,600
$97,150
CADILLAC, MI (MICRO)
MISSAUKEE
$73,600
$97,150
MONROE, MI (MSA)
MONROE
$73,600
$97,150
NON-METRO
MONTCALM
$73,600
$97,150
NON-METRO
MONTMORENCY
$73,600
$97,150
MUSKEGON-NORTON SHORES, MI (MSA)
MUSKEGON
$73,600
$97,150
GRAND RAPIDS-WYOMING, MI (MSA)
NEWAYGO
$73,600
$97,150
WARREN-TROY-FARMINGTON HILLS, MI METROPO
OAKLAND
$73,600
$97,150
NON-METRO
OCEANA
$73,600
$97,150
NON-METRO
OGEMAW
$73,600
$97,150
NON-METRO
ONTONAGON
$73,600
$97,150
NON-METRO
OSCEOLA
$73,600
$97,150
NON-METRO
OSCODA
$73,600
$97,150
NON-METRO
OTSEGO
$73,600
$97,150
HOLLAND-GRAND HAVEN, MI (MSA)
OTTAWA
$73,600
$97,150
NON-METRO
PRESQUE ISLE
$73,600
$97,150
NON-METRO
ROSCOMMON
$73,600
$97,150
SAGINAW-SAGINAW TOWNSHIP NORTH, MI (MSA)
SAGINAW
$73,600
$97,150
NON-METRO
SANILAC
$73,600
$97,150
NON-METRO
SCHOOLCRAFT
$73,600
$97,150
OWOSSO, MI (MICRO)
SHIAWASSEE
$73,600
$97,150
WARREN-TROY-FARMINGTON HILLS, MI METROPO
ST. CLAIR
$73,600
$97,150
STURGIS, MI (MICRO)
ST. JOSEPH
$73,600
$97,150
NON-METRO
TUSCOLA
$73,600
$97,150
KALAMAZOO-PORTAGE, MI (MSA)
VAN BUREN
$73,600
$97,150
ANN ARBOR, MI (MSA)
WASHTENAW
$92,000
$121,450
DETROIT-LIVONIA-DEARBORN, MI METROPOLITAN DIVISION
WAYNE
$81,650
$107,800
CADILLAC, MI (MICRO)
WEXFORD
$73,600
$97,150

 

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