Loan types
USDA loan
A zero-down mortgage backed by the U.S. Department of Agriculture for homes in eligible rural areas, aimed at moderate-income buyers under roughly 115% of area median income.
What does usda loan mean?
The USDA loan is the most overlooked financing tool in Michigan, because "rural" is far broader than it sounds — eligibility covers the outer edges of many metros plus nearly all of the state's smaller towns and countryside. It offers zero down and a guarantee fee cheaper than FHA's mortgage insurance. The two catches are location (the home must sit in a USDA-eligible area) and a household income cap. Buyers around Saginaw, Jackson, and much of northern Michigan routinely qualify without realizing the map includes their neighborhood.
Common questions
How do I know if a Michigan address is USDA-eligible?
Check the specific address on the USDA eligibility map — the boundary can run right through a subdivision. Much of Michigan outside its metros qualifies.
What are the USDA income limits?
Roughly 115% of the area median income, counted for the whole household and adjusted by county. A buyer who qualifies in one Michigan county may exceed the cap in a wealthier one.
Is a USDA loan really zero down?
Yes, for eligible rural properties and incomes — no down payment, plus a guarantee fee cheaper than FHA mortgage insurance. It's one of the few true zero-down options besides VA.
Related terms