Purpose:  To assist low and moderate income applicants to purchase new or existing houses.  This made possible by the guarantee of loans made by approved conventional lenders.

Eligibility Requirements:

• Does not current own adequate housing.

• Unable to secure credit without a guarantee.

• Must be a U.S citizen or have qualified alien status.

• 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 show adequate repayment ability for the loan request. 

• PITI no more than 29% of gross monthly income and TD 41%.

• 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.

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:

• Contact and apply with an approved Michigan lender ( click here to see them listed by county).

• Contact and apply with an approved national lender.

Additional Information:

 Administrative Notices

RHS Eligibility Site

Historical Fannie Mae Rates

Approved Dealer Contractors

Origination and closing documentation

Forms:         

·       

Don't have Excel?  Click here to download the viewer. (3.8MB)
(486 or higher,  Windows 95/NT, 8MB memory for 95/16MB for NT, 7MB hard drive space, VGA or higher, and mouse required)