Prefer pastures over pavements? A Rural Development (RD) loan is ideal for buyers who’d like to build, improve, repair, or rehab homes in rural areas—with no down payment. While RD loans often fall under the radar and are underutilized by big banks, we see its great value for buyers and lead in the Rural Development lending process. To qualify for an RD loan, buyers and properties must meet the MSHDA (Michigan State Housing Development Authority) qualifications on the sale price, income limit, first-time homebuyer eligibility guidelines, and location requirements.

Backed and guaranteed by the United States Department of Agriculture, the RD loan allows a person to borrow up to 102% of the appraised value and it’s the only zero down option available to buyers who haven’t served in the military. RD loans can include closing costs, prepaid/escrow items, and the RD guarantee fee. Better yet, RD loan applicants receive almost all their earnest money back after closing.

If you’re a veteran interested in an RD loan, be sure to check out our VA mortgages as well.

  • Includes a 30-year fixed-rate mortgage
  • 0% down payment option
  • The property must be in an eligible location
  • Must be a single family, owner-occupied home
  • Not limited to first-time buyers
  • Rates are similar to conventional rates
  • No manufactured homes, must be FHA-approved condos only
  • Seller contribution allowed up to 6%
  • Maximum income is 115% of the median income in your residential area
  • Maximum loan amount cannot include repairs and or improvements to the property.

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Down payment requirements, closing costs, and loan amounts are for illustrative purposes only; subject to credit qualification, not all applicants may qualify. Not a commitment to lend. Not affiliated with or endorsed by any government institution. Please contact us for an exact quote and for more information on fees and terms.

Treadstone Funding propelled by Neighborhood Loans NMLS 222982 “Illinois Residential Mortgage Licensee No. MB.6759826. For licensing information, go to www.nmlsconsumeraccess.org