For home buyers
USDA Loans in Michigan
USDA loans are mortgages backed by the U.S. Department of Agriculture, with down payment options for eligible addresses and incomes. They help eligible low-to-moderate income households buy in rural and suburban areas, with an annual fee that is usually lower than FHA’s mortgage insurance.
- No credit pull to talk
- Licensed mortgage broker, NMLS 2041154
USDA Loan
Key benefits
Lower Annual Fee
An annual fee on the balance, usually less than FHA’s annual mortgage insurance.
The Whole Household Counts
Income from everyone living in the home counts toward the limit, not just the people on the loan.
Check the Address First
The map decides before anything else. A street on the edge of town can fall on either side of the line.
USDA against FHA: less cash down, but only in the right place
Of the common loans open to buyers without military service, USDA asks the least cash down. The trade is that the house and your income both have to qualify, not just you.
| What decides it | USDA | FHA |
|---|---|---|
| Where you can buy | Only in a USDA eligible area. That covers far more of Michigan than people expect, including much of the outer ring around Detroit, but it is a map and the address either qualifies or it does not. | Anywhere. |
| Is there an income limit? | Yes. Household income is capped relative to the area median, and it counts everyone in the house, not just the borrowers. | No cap. |
| Money down | The least of the common loans, for an eligible address and income. | Low, with a credit score of 580 or higher. |
| Upfront fee | An upfront fee applies, usually financed into the loan. | An upfront mortgage insurance premium applies, usually financed into the loan. |
| Annual fee | An annual fee on the balance, paid monthly, for the life of the loan. | Charged monthly, and for the life of the loan when it starts above 90% of the home’s value. |
| What usually disqualifies people | The address, or household income over the cap. | Credit or debt load. Location almost never matters. |
| When each one is the answer | A qualifying address, income under the cap, and little saved. Less cash down, and a smaller upfront fee than FHA. | The house is outside an eligible area, or the household earns too much. |
Check an address on the USDA map
Guidelines
Guidelines for this loan
What USDA lenders usually check. The address and the household income both have to qualify.
Location
Must be USDA-eligible area (rural or suburban).
Read the guideCredit Score
USDA sets no program minimum. Lenders set their own, and a higher score means a simpler credit review.
Read the guideIncome
Must fall below set income limits for your area.
Read the guideProperty
Must be primary residence and meet condition standards.
Read the guideOfficial sources
Check the rules at the source
Program guidelines change. These are the official pages we check them against.
Questions about this loan
If yours is not here, ask it on the call. There are no dumb questions.
How do I know if the house I want is in an eligible area?
Use the USDA eligibility map, or send Samantha the address and she will check it before you rely on it.
Are there income limits?
Yes. They vary by household size and location but typically cap at 115% of area median income.
Do I have to be a first-time buyer?
No. Repeat buyers can use USDA, as long as they do not already own a home in the area that meets their needs.
Can I build a new house with a USDA loan?
Yes. A new home from a builder the lender approves can qualify, as long as the address is in an eligible area and the household income fits the county limit.
Does USDA charge mortgage insurance like FHA does?
Not mortgage insurance as such. USDA charges an upfront fee, usually added to the loan, and an annual fee paid monthly. The annual fee is usually lower than FHA’s annual mortgage insurance.
What does Michigan add to a USDA purchase?
The tax line, as on any purchase. The year after a Michigan home sells, its taxable value resets to half of the assessor’s market value, so the seller’s tax bill is not your tax bill. Estimate the tax for an address, because the USDA income and payment review uses the full monthly payment, taxes included.
What our clients say
Ask Samantha whether this loan fits
Bring the address and your household income. Samantha will check the USDA map and the county income limit before you rely on either.
- 1
Tell us what you are trying to do
Not what product you want. What you are actually trying to accomplish.
- 2
We look at your situation
Samantha works out what matters most for you specifically.
- 3
You leave with a plan
Your options, the tradeoffs, and your next step. No obligation to go further.
Align Lending LLC, NMLS #2041154, is a mortgage broker. Samantha Shelton, NMLS 1647301. Equal Housing Opportunity. Licensed in Michigan, Ohio, North Carolina, Florida, Louisiana and Texas. Program guidelines on this page are general and change over time; they are not a credit decision, a preapproval, a commitment to lend, or an offer of credit. Approval depends on your full application, the property and the lender's current guidelines.
