Mortgage Resources

The Rural Development loan is a zero down payment loan based on the location of the property and the household income of the borrower(s). The income limit is based on how many family members will live in the property and it varies from county to county. In Washtenaw County in 2012, the limit for a family or four is $93,450.00 annually and increases slightly if your family is larger. (updated 01.18.2012)

When one hears Rural Development loan, you would think that most properties would not be considered “rural” in the Ann Arbor area. However, with the exception of the City of Ann Arbor and the City of Ypsilanti, most all of the surrounding communities would be eligible. To determine whether or not a property would qualify, use the following link:
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Other than those two restrictions, a USDA Rural Development loan is very much like any other program. It is a standard 30 year fixed term without any pre-payment penalty. Today, only a very small monthly mortgage insurance payment is required even though there is no down payment.

In certain cases, some of your closing costs may be financed into the mortgage depending on the appraised value of the home. Please contact us to see if your situation fits into the program.