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Waterfront & Homes For Sale in Manistee

Understanding Rural Development Loans


Quick Guide to Rural Housing Loans
April 2013
Not every community qualifies—but if it does, it’s the best thing since sliced bread! 
Manistee County is eligible for USDA RURAL DEVELOPMENT loans- also known as an RD loan.  Many of my buyers choose to use this program because of the $0 down payment option. 
Buyer Qualifications Highlights
·         No Down Payment
·         30 year fixed rate
·         102% LTV (100% plus 2% guarantee fee)
·         Finance Closing Costs If Appraisal Is Higher Than Sales Contract
·         No Mortgage Insurance
·         No cash contribution required from borrower.
·         Income Limits (by county)
·         Unrestricted gifts, no need to document source.
·         No Maximum Loan Amount
·         No Cash Reserve Requirements
Property Qualification Highlights
§         Existing Home
§         New Construction
§         New Manufactured Homes
§         Modular Homes
§         Condos & Town homes (Must be approved projects)
Prohibited Loan Purposes
·         Co-signors not residing in the household
·         In-ground swimming pools
·         Construction draws
·         Furniture and personal property
·         Income producing property
·         Non-essential buildings and land
·         Previously occupied manufactured homes
Income Guidelines
Like most goverment guaranteed loans, the Rural Development loan has income guidelines.  For Manistee County, the guidelines for 2009 are as follows:
  • 1 - 4 people - maximum income of $73,600
  • 5-8 people - maximum income of $97,150