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Michigan Rural Housing Loans... APPLY
NOW!
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County Eligibility Maps |
County Income Limits
Michigan Guaranteed Rural
Housing Loan Program
Guaranteed Home Ownership Loans
Objective
Assist eligible applicants in buying
their homes by guaranteeing private lenders' loans.
Applicant
Families and individuals apply to
an intermediary
Uses
Loans may be made to purchase new
or existing homes that are modest in cost.
Population
Rural areas and populations of
10,000 or less.
Loan/Grant
Loan guarantee
Terms/Conditions
Loan is for 30 year, fixed rate interest negotiated between lender and
borrower. Loan up to 100 percent of market value. Fee is 2% of loan.
APPLICANT ELIGIBILITY
INCOME CRITERIA
Click here to view
county income limits.
The applicants "Eligibility Income"
may not exceed the moderate income
level listed in the Rural Development instruction
Annual eligibility income includes all income received by the
applicant, co-applicant and all other adult members of the household.
Income calculations should be based on a projection of the next
twelve months if possible
The following items are subtracted from eligibility income to
calculate "Adjusted Income"
- $480 per each minor child or full time student age 18 or older
- $480 per household member, who is not the applicant or
co-applicant, who is disabled
- $400 per family for an elderly or disabled applicant
- For elderly families, medical expenses that exceed 3% of gross
annual income
- Certain child care expenses for children 12 years and under
"Qualifying Income"
is used to determine ratios. This income is
that which comes from the applicant and co-applicant only. Could be
significantly different than eligibility income
PITI (Principal, Interest, Taxes and Insurance) cannot exceed
29% of qualifying income without compensating factors (current housing cost
equal or exceeds proposed PITI)
Total Debt Ratio cannot exceed 41%
- Total Debt Ratio consist of PITI plus long term debt with more
than six months remaining
PROPERTY REQUIREMENTS
RHS loans are restricted from loaning in "Urban" areas.
Ineligible areas are described on
maps available by clicking here.
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