Home Point Financial is pleased to announce that we now have Michigan USDA (United States Department of Agriculture) financing. USDA Loans are intended to provide lower-income homeowners with 100% financing (with no down payment). These loans, once known as farm loans, are now available to residents in almost every county outside of major metropolitan areas (rural areas in Michigan including Crawford, Clare, Mason, Wexford, Lake, and others).
USDA Loan Requirements and Guidelines
There are a number of requirements to quality for Michigan USDA Loans:
- Monthly housing costs (mortgage principal and interest, property taxes and insurance) must meet a specified percentage of your gross monthly income (29% ratio).
- Credit background will be fairly considered. At least a 640 FICO credit score is required to obtain a USDA approval through most lenders in Michigan.
- Borrower must have enough income to pay housing costs plus all additional monthly debt (41% ratio with some flexibility).
- Income can be up to 115% of the median income for the area.
- Bankruptcy: Have been discharged from a Chapter 7 bankruptcy for three years or more (if applicable).
- Michigan property must be considered rural which is generally defined as open country with fewer than 10,000 people. Learn more here: http://eligibility.sc.egov.usda.gov.
Michigan families must be able to afford the mortgage payments, including taxes and insurance.
Michigan USDA Mortgage Rates
USDA Loan rates vary by individual and are determined by a number of factors specific to the Michigan property being financed, etc. In general, USDA rates are better than average compared to other options for qualifying individuals.
Michigan USDA Lender
Contact Home Point Financial to learn more about USDA loans in Michigan.