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.
How to check eligibility
- Location: look up the exact address on the USDA eligibility map — the boundary can split a subdivision
- Income: confirm the whole household is under roughly 115% of the area median for that county
- Occupancy: the home must be your primary residence
Related terms