Michigan bore the brunt of a slowed down economy with a real estate market that saw the value of homes and demand fall. The market is on an upswing in most states and this includes Michigan. USDA Rural Development is doing a lot to improve the real estate market by making it easier for those who wish to invest in property in rural Michigan to do so. You may be asking what is USDA rural development in general, not just for Michigan. The short answer is that it's a mortgage option that helps families buy their homes with very little cash needed at the closing table. Let's take a closer look at what that means for Michigan home buyers. Since 2011, at least 7, 051 families in the Great Lakes State have been able to purchase homes thanks to the Michigan USDA rural development. The program offers assistance in various categories including loans and grants for business programs and community programs. For homes, assistance is given for multi-family financing and single family financing. The Single Family Housing Program offers assistance to families living in rural Michigan who are in the low and moderate income bracket. This is done through a number of loan and guarantee programs. With the program offering loans to those who would not qualify for a conventional loan, it helps many who would otherwise not have been able to get a mortgage to be able to own a home. The loans can be taken to buy a ready home or to construct a new home. Guaranteed Home Loans are the kind of loan that the Michigan USDA rural development offers. Under this program, the USDA guarantees loans that are given by lenders in the private sector. This means that in case a borrower defaults on their loan, it will be paid by the USDA. Individuals collaborate with the private lender and makes the repayments to them. With Guaranteed Home Loans, it is allowed for the individual or family to borrow up to 100 percent of the appraised value of the home. This means that a down payment is not necessary. For most people, one of the major hindrances to owning a home is saving up enough money to put down a deposit. Being able to borrow this much makes a big difference to many people in rural Michigan. Check out the map below for an example of what's covered (and not covered) by the term "rural." You might be surprised at how many smaller towns are covered.
