Posted by: Brian Powers | April 20, 2009

USDA Rural Home Loans

One of the common myth’s being floated about the marketplace these days is that money and credit for purchasing a home has dried up.  Not only is it not true, but there are some very affordable home loans available to buyers.

You can still qualify for FHA Financing with as little as 3.5% down and a 620 credit score.

Even better is a little-known loan program offered by the USDA for Rural Home Loans.  Qualifiying rural areas vary by county.  In Macomb County pretty much anything north of 26 Mile Road qualifies, and in St.Clair County nearly the entire county qualifies with the exception of Port Huron.  If you are considering moving into a more rural area it is a fantastic time to buy.  Not only are prices historically low, but rates are still low, and now you can qualify for special USDA Rural Home Loan financing.  So what’s so great about the USDA financing?

  • Minimum credit score requirements
  • 0% Down Payment
  • Lending guidelines are more liberal than conventional and FHA financing (recent foreclosure and bankruptcy is OK if credit score still falls within guidelines)
  • Up to 6% seller concessions for closing costs
  • Still qualify for up to $8000 First Time home buyer credit

There are a few additional guidelines. If you are considering purchasing a home in northern Macomb County or in St.Clair County please give me a call so we can discuss this loan program.




  1. Brian,

    Thank you for the information! I had no idea the USDA had home loans available. Would you happen to know where the qualifying rural areas are in Genesee County, where I live? Also, can the $8,000 First-time Home Buyer credit be used to pay a portion of the closing costs or as a downpayment or on these loans, even though no downpayment is required?

    Thanks in advance for the answers to my questions!


  2. Amanda,
    Here is a map link for Genesee Co. eligibility for the USDA. Anything outside the tan box is eligible.

    As for the tax credit, the ability to use the tax credit towards down payment assistance applies to FHA loans only. You’ll still get the tax credit with a USDA loan, you’ll get it when you file your taxes.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: