USDA Rural Development Loans: Now Available to Millions
The USDA changed rules in 2009 that makes millions of Americans eligible for its rural mortgage programs. A USDA Rural Development loan is commonly referred to as a "USDA loan" or "RD Loan". This loan program allows Arbor One Mortgage Group to provide low- and moderate-income households the opportunity to achieve the American dream of homeownership. The USDA Rural Development loan offers a zero-down payment option and expanded credit approvals, so it is a great alternative for families struggle to come up with the 20% down payment that many conventional home loans require.
Do I Qualify for a USDA Rural Development Loan?
Almost anyone outside of a major metropolitan area looking to purchase a home can qualify for a USDA loan. Eligibility varies based on area, your income, credit history, and number of dependents claimed so it's important that you call and speak with one of our experts to see if you qualify. 734-392-8300
What are the Benefits of a USDA Rural Development Loan?
- Zero money down and 100% financing is available
- USDA loans come directly from the federal government or from government approved and backed lenders
- You can have lower monthly payments with terms up to 30 years
- Flexible qualification guidelines (Bad credit can qualify)
- Low income families can qualify
- Low Mortgage Insurance (PMI) with the Guarantee Fee
- Ability to buy soon after bankruptcy
- Ability to buy soon after foreclosure
- Low interest rates
- The maximum debt-to-income ratio for USDA loans are higher than a conventional loan. (More homebuyers qualify)
What type of property qualify for a USDA Rural Development Loan?
- New Residential Home
- Pre-existing Residential Home
- Homes within city limits of many Rural Communities
Are there specific rules when it comes to qualifying for a USDA Rural Development mortgage?
First, the house must meet the geographical requirements. The house must be in an area the USDA considers "rural." This doesn't mean your new home will be miles away from your closest neighbor. In fact, many neighborhoods fall in the rural designation. Check here for USDA Rural Development Eligibility (on this page click "Single Family Housing" then select "Property Eligibility").
Second, USDA has set income limits for individuals and/or families to qualify. Your household income cannot exceed 115% of your area median income. Most moderate-income families will meet the income requirements for a rural development loan. For most areas of the county the income limit for households with 1-4 family members can range from $75,650 and up to $153,400. Many factors go into calculating your income eligibility so you should speak with one of our experts to help determine your eligibility. If you would like to check the income requirements in your county on the USDA website. Check here for USDA Rural Development Eligibility (on this page click "Single Family Housing Guaranteed”, then select” Income Eligibility").
What if I have more questions?
Arbor One Mortgage Group (a division of Mortgage 1, Inc.) is one the largest originators of USDA Rural development loans in the State of Michigan. We have over 20 years’ experience and can help answer all your questions. If you would like to speak with USDA loan Specialist about your loan options please call us at 734-392-8300 or click the free consultation button below.
If you would like our free, no obligation, USDA Rural Development Home Loan Guides please fill out the form below.
How do I get started?
Simply click the Free Consultation button below and select "Complete Application". The application only takes a few minutes to complete. Once you complete the application a USDA loan Specialist will reach out to you to answer your questions and discuss your options. We look forward to working with you!
To talk to a local Loan speciaist or to start the loan pre-approval process please click on the free consotation button below.