Michigan Rural Development Loans

Rural Development loans allow first time home buyers or previous home owners to purchase their new home with 0% down payment and allows the seller to pay up to 6% of the sale price towards your closing costs keeping your out of pocket expenses low!

Rural Development Loan Features

  • $0 down payment.

  • Seller can pay up to 6% of the sale price towards your closing costs.

  • Low monthly mortgage insurance (PMI).

  • No loan limits.

  • Geographic restrictions vary by County (click here for eligibility maps).

  • Income limits vary by County (click here for income limits).

  • Gifts from immediate family members to cover closing costs is acceptable.


General Requirements

  • Credit score minimum of 640.

  • No previous mortgage loan late payment in the past 24 months.

  • No foreclosure/short sales within the past 36 months.  Must have rebuilt credit.

  • No bankruptcies in the past 36 months.  Must have rebuilt credit.

  • Must have 3 tradelines of credit.  Can be a combination of traditional (reporting to credit bureaus) and non-traditional (ie, rent, utilities, etc).

  • All court ordered judgments MUST be satisfied or have a satisfactory payment history for a minimum of 3 months.