Exploring USDA RD Loan Options in Michigan

You can use this USDA eligibility map to find USDA-eligible homes in your area. Look up the address you’re interested in purchasing to verify it falls within a rural area, as determined by the U.S. Department of Agriculture.

The USDA Rural Development (RD) office provides several loan programs to support projects in rural areas across Michigan These low-interest loans can help fund a variety of projects related to housing, businesses, infrastructure and more This article will explore the key RD loan programs available in Michigan and provide guidance on eligibility, application process, and locating RD service areas.

An Overview of USDA RD Loan Programs in Michigan

The USDA RD office in Michigan offers loans across three key areas

Rural Housing Service – Provides loans and grants for single family homes, multi-family housing, farm labor housing, and more. Key programs include Section 502 Direct Loans, Section 515 Rural Rental Housing Loans, and Section 514 Farm Labor Housing Loans.
Rural Business-Cooperative Service – Offers business loan programs like the Business & Industry Loan Guarantee program and Rural Economic Development Loans. These support rural businesses and create jobs.
Rural Utilities Service – Provides infrastructure loans for electric, telecom, water and waste disposal systems. Key programs include Water & Waste Disposal Loans, Electric Infrastructure Loans, and Broadband Loans.

Within these three agencies, there are over two dozen specific loan programs offered in Michigan. The terms, rates, eligibility and parameters can vary widely, so it’s important to review each program before applying.

Checking Eligibility for RD Loans in Michigan

The main eligibility factors for RD loans in Michigan include:

Location – The project must be located in a rural area or town under 50,000 population. Some programs have additional location criteria.
Income – For housing programs, applicants must be low or moderate income. Income limits vary by county and household size.
Type of Project – The project must qualify under the parameters of the specific loan program. Each program has defined eligible projects.

The RD office provides an eligibility tool on their website to check if a location qualifies as rural. Applicants should also review eligibility details in the program description before applying.

Finding Current RD Loan Designations in Michigan

USDA RD delineates which areas qualify under its rural loan programs through rural area and rural place designations. These designations are updated periodically.

There are a few ways to find the current RD rural area eligibility map for Michigan:

Check the eligibility site and enter the project address.
Download the PDF rural area maps available on the Michigan RD website.
Contact the Michigan RD state or area office to request the current map and list of eligible places.

The RD eligibility map shows the rural area boundaries within Michigan. Applicants should cross-reference the map with the list of rural place designations before applying.

Applying for an RD Loan in Michigan

The application process will vary slightly depending on the specific loan program. But in general, these are the key steps:

Choose a program – Review loan programs and select one that matches your project.
Check eligibility – Confirm the project location and specifics meet eligibility criteria.
Gather materials – Compile required documents like financial statements, business plans, etc.
Complete application – Fill out the required forms and attachments.
Submit to RD office – Send completed application to the state or area RD office.
Review and decision – The RD office reviews the application and informs if it’s approved or denied.

It’s highly recommended to contact the Michigan RD office before applying to confirm program eligibility and get guidance on the process.

Locating Your Local RD Office in Michigan

There are several local USDA RD offices that serve different regions across Michigan:

Michigan State Office – Located in East Lansing and serves the entire state.
Western UP Area Office – Located in Iron Mountain and serves the western Upper Peninsula.
Northern Lower Michigan Area Office – Located in Cadillac and serves the northern half of the Lower Peninsula.
Southern Lower Michigan Area Office – Located in Jackson and serves the southern half of Lower Peninsula.

You can find contact information for each Michigan RD office on the RD website or by calling the state office. Contact your local office to learn more about loan programs in your area.

Key Takeaways on RD Loans in Michigan

USDA RD offers low-interest loans for rural housing, businesses, infrastructure and more across Michigan.
Loan eligibility is based on location, income, and qualifying projects that support rural development.
Use the RD eligibility mapping tool and designations list to confirm your project location qualifies.
Work with your local RD office for guidance on loan programs, the application process, and materials needed.

Exploring the USDA RD loan programs in depth can help applicants find the right funding opportunities to launch projects that boost the rural economy and support communities in Michigan.

USDA Eligibility Map: Verify an Address

Areas in red are not currently eligible for a USDA-backed loan.

USDA Loan Property Eligibility Requirements

Though USDA loans are often referred to as rural housing loans, you don’t have to live in the country or purchase farmland to use them. In fact, you might be surprised at just how much of the country is actually eligible for these loans.

According to the Housing Assistance Council, a whopping 97% of U.S. land is located within USDA-eligible boundaries. Those areas claim about 109 million Americans — or around a third of the country’s entire population.*

Buyers in large cities and more densely populated suburbs aren’t eligible for these loans, but many living in surrounding towns and cities may be. An area with a population of 35,000 or less can be considered “rural” in the USDA’s eyes.

The easiest way to determine USDA property eligibility is to look up the address in the map above. Simply type the property address into the tool, press enter, and you’ll see if the home is eligible for USDA financing. If the property shows up in a shaded area of the USDA eligibility map, it is not currently eligible.

What Areas Qualify for USDA Loans? (MAP)

FAQ

What is a RD loan for Michigan?

A USDA loan, also known as an RD loan or Section 502, is ideal for buyers who want to buy homes in rural areas—with zero down payment. While Michigan USDA loans often falls under the radar and are underutilized by big banks, we see their value for buyers and lead in the USDA lending process.

What credit do you need for a USDA RD loan?

What is the minimum credit score for a USDA loan? Approved USDA loan lenders typically require a minimum credit score of at least 620 to get a USDA home loan. However, the USDA doesn’t have a minimum credit score, so borrowers with scores below 620 may still be eligible for a USDA-backed mortgage.

What is the income limit for USDA in Michigan?

Borrower Requirements Eligible properties must be single-family, owner-occupied homes. Income must be below USDA-set limits: $110,650 for Michigan households with 4 persons or less. Minimum FICO score of 620.

How accurate is the USDA eligibility map?

If you already have a specific home in mind, you can use the USDA loan map to check that address. However, just because a property is in an area designated as rural on the USDA loan map, it doesn’t guarantee that you’ll be able to finance it with a USDA loan.