Michigan Guaranteed Rural Housing Loan Program

The Rural Development Guaranteed Program provides a guarantee on approved private lenders' loans. The Guaranteed Program offers moderate income applicants the opportunity to purchase new or existing home with zero down payment, no monthly PMI payment and 102% financing based on appraised value vs. purchase price.

Rural Development, with the partnership efforts of over 200 lenders, has assisted nearly 56,000 Michigan families obtain mortgages utilizing the Guaranteed Rural Housing Loan Program. Residents in all 83 Michigan counties have benefited from these mortgages totaling over 5 billion dollars to date.

Rural Development in Michigan is proud to have led the nation in guaranteed home loans since 1995. Our sincere thanks go out to all the lenders and borrowers that have joined together to make this program so successful.

For more information, see the Program Guide.

Eligibility Requirements:

  • Unable to secure credit without a guarantee.
  • Must personally occupy the dwelling as primary residence.
  • Must have adequate and dependable income sufficient to meet all obligations. * Must have an acceptable credit history.
  • Must have adjusted household income that does not exceed the moderate income established for the county.
  • Must have legal capacity to incur the loan obligation. 
  • Must be in rural area (click here for ineligible area maps).


Loan Purposes:

  • Purchase a new or existing single family dwelling.
  • Purchase a new construction must comply with applicable building codes.
  • Closing costs, guarantee fee, legal fees, title services, establishing escrow account and other prepaid closing costs may be included in the total loan if it does not exceed the appraised value plus the guarantee fee. There is no limit on seller contributions to closing costs unless set by the lender.


Property Requirements:

  • Existing homes must be structurally sound, functionally adequate and in good repair.
  • Existing manufactured homes or mobile homes, income producing property and properties with in-ground swimming pools prohibited.
  • No restrictions on the size or design of the home.
  • Homes must be located in a rural area.
  • On site water and sewage systems must comply with local zoning and state approvals/health standards. Value of site is not to exceed 30% of appraised value.


Terms and Fees:

  • 30 year term
  • Fixed interest rate negotiated between the lender and the borrower
  • 2 percent up-front fee for purchase transactions and refinance transactions; and
  • 0.4 percent annual fee based on the average scheduled unpaid principal balance of the loan, for both purchase and refinance loans transactions.
  • No mortgage insurance is required.
  • No limit on seller contribution unless set by the lender.


How to apply:


Additional Information:




System for Award Management (sam.gov)

SAM is the new streamlined reporting system for USDA staff and other federal agencies. The consolidated system simplifies the process for loan and grant recipients and makes project tracking more transparent.

SAM replaces the following systems: Central Contractor Registration (CCR), Federal Agency Registration (FedReg), Online Representations and Certifications Application (ORCA), and the Excluded Parties List.

More information is at http://sam.gov and frequently Asked Questions/Quick Start

The web addresses for legacy systems will also automatically redirect users to sam.gov.