Loan Program
USDA Rural Development Loans
A USDA loan is a government-backed mortgage that allows no down payment on homes located in eligible rural and semi-rural areas. Parts of the outer Downriver area, including sections near Huron Township, Rockwood and Brownstown, can fall inside eligible USDA boundaries.
What it is
- A mortgage guaranteed by the U.S. Department of Agriculture.
- Limited to properties inside USDA-designated eligible areas.
- Includes an upfront guarantee fee and a smaller annual fee.
Who it's for
- Buyers looking at the western and southern edges of Downriver.
- Households within USDA income limits for Wayne County.
- Buyers with little saved for a down payment.
Typical requirements
- Property must be in a USDA-eligible area.
- Household income must fall within published limits.
- Primary residence occupancy.
- Stable income history and acceptable credit profile.
Guidelines vary by lender and change over time. Meeting these items does not guarantee approval, and all loans are subject to credit and property approval.
Advantages
- No down payment required.
- Annual fee is typically lower than FHA mortgage insurance.
- Fixed-rate terms only, so payments stay predictable.
Trade-offs
- Geographic and income restrictions limit who qualifies.
- Not available for investment property or second homes.
- Processing can involve an extra agency review step.
FAQ
USDA Rural Development Loans: common questions
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