The Section 502 Direct Loan Program, also known as USDA Direct Loans, is a program that aids low and very-low-income individuals purchase decent healthy, safe and clean housing in eligible rural areas. That’s accomplished though offering payment assistance which boosts a borrower’s capacity to repay. This payment assistance can be described as a form of subsidy that lowers the mortgage repayment for a brief period, and the amount of assistance is contingent upon the adjusted family income. USDA Section 502 Direct Loans in Michigan aren’t the same thing as USDA Section 502 Guaranteed Loans in Michigan. The USDA Guaranteed Loan Program is more popular and accommodates a wider range of applicant incomes.

Can I get a USDA Direct Loan in Michigan?

USDA Loan RequirementsUSDA Direct Loans in Michigan are low income loans that can be used to purchase homes in rural areas. To qualify for Direct Loans, applicants must have low or very low income, which is defined by the USDA as 50% to 80% of the Area Median Income (AMI). Like other rural housing loan programs, USDA Direct Loans are a mortgage with no down payment. The median income for the entire state of MI is $57,144, although that figure may vary from county to county. The maximum yearly income limits for Michigan USDA Direct Loan approval are listed below. Other than meeting Michigan USDA Direct Loan income limits, applicants must adhere to the following criteria to be eligible:

  • You have no decent clean, safe, and sanitary housing presently.
  • You can’t be able to get a mortgage from another source with terms and conditions that could reasonably expected to be met.
  • You must use this property for your primary residence.
  • You must possess the legal capacity to be able to contract a loan
  • You must meet citizenship or eligible noncitizen requirements.
  • You can’t be barred or suspended from participation in federal programs.

Additionally, the subject property must meet the following conditions:

  • Be a modestly sized home for that area.
  • Market value can’t be in excess of the areas applicable loan limit.
  • Can’t be designed for the production of income.

What areas in MI are eligible for USDA Direct Loans?

The property in question must be in an approved rural area. USDA Rural Development provides a webpage where you can search specific addresses in MI here.

How much can I borrow with a USDA Direct Home Loan?

The size of the mortgage that an applicant’s eligible for depends on their ability to repay. Rural Development takes into account income, assets, debt, and payment assistance when weighing eligibility for USDA Direct home loans. No matter what the repayment ability is, you can’t borrow more than the local loan limit for the county where the home is located.

Are there other mortgage options with low down payment or no down payment in Michigan?

Yes, there may be other low down payment mortgage options, and no down payment mortgage options in Michigan besides USDA Direct Loans. You can begin by researching Michigan USDA Guaranteed Loans, Michigan FHA Loans, and Michigan VA Loans if you’re a veteran in MI or qualified family member. You may also want to look into helpful programs for down payment assistance in Michigan.

Michigan USDA Direct Loan Maximum Income Limits

1 Person
2 Person
3 Person
4 Person
5 Person
Alcona County, MI $48,900$48,900 $48,900$48,900 $64,550
Alger County, MI $48,900$48,900 $48,900$48,900 $64,550
Allegan County, MI $57,700$57,700 $57,700$57,700 $76,150
Alpena County, MI $48,900$48,900 $48,900$48,900 $64,550
Ann Arbor, MI MSA $75,500$75,500 $75,500$75,500 $99,650
Antrim County, MI $49,300$49,300 $49,300$49,300 $65,100
Arenac County, MI $48,900$48,900 $48,900$48,900 $64,550
Baraga County, MI $48,900$48,900 $48,900$48,900 $64,550
Barry County, MI HUD Metro FMR Area $57,200$57,200 $57,200$57,200 $75,500
Battle Creek, MI MSA $51,350$51,350 $51,350$51,350 $67,800
Bay City, MI MSA $48,900$48,900 $48,900$48,900 $64,550
Benzie County, MI $51,100$51,100 $51,100$51,100 $67,450
Branch County, MI $48,900$48,900 $48,900$48,900 $64,550
Cass County, MI HUD Metro FMR Area $50,150$50,150 $50,150$50,150 $66,200
Charlevoix County, MI $52,300$52,300 $52,300$52,300 $69,050
Cheboygan County, MI $48,900$48,900 $48,900$48,900 $64,550
Chippewa County, MI $48,900$48,900 $48,900$48,900 $64,550
Clare County, MI $48,900$48,900 $48,900$48,900 $64,550
Crawford County, MI $48,900$48,900 $48,900$48,900 $64,550
Delta County, MI $48,900$48,900 $48,900$48,900 $64,550
Detroit-Warren-Livonia, MI HUD Metro FMR Area $61,050$61,050 $61,050$61,050 $80,600
Dickinson County, MI $48,900$48,900 $48,900$48,900 $64,550
Emmet County, MI $54,400$54,400 $54,400$54,400 $71,800
Flint, MI MSA $48,900$48,900 $48,900$48,900 $64,550
Gladwin County, MI $48,900$48,900 $48,900$48,900 $64,550
Gogebic County, MI $48,900$48,900 $48,900$48,900 $64,550
Grand Rapids-Wyoming, MI HUD Metro FMR Area $61,300$61,300 $61,300$61,300 $80,900
Grand Traverse County, MI $62,000$62,000 $62,000$62,000 $81,850
Gratiot County, MI $48,900$48,900 $48,900$48,900 $64,550
Hillsdale County, MI $48,900$48,900 $48,900$48,900 $64,550
Holland-Grand Haven, MI HUD Metro FMR Area $67,200$67,200 $67,200$67,200 $88,700
Houghton County, MI $48,900$48,900 $48,900$48,900 $64,550
Huron County, MI $48,900$48,900 $48,900$48,900 $64,550
Ionia County, MI $49,600$49,600 $49,600$49,600 $65,450
Iosco County, MI $48,900$48,900 $48,900$48,900 $64,550
Iron County, MI $48,900$48,900 $48,900$48,900 $64,550
Isabella County, MI $51,050$51,050 $51,050$51,050 $67,400
Jackson, MI MSA $51,700$51,700 $51,700$51,700 $68,250
Kalamazoo-Portage, MI MSA $59,100$59,100 $59,100$59,100 $78,000
Kalkaska County, MI $48,900$48,900 $48,900$48,900 $64,550
Keweenaw County, MI $48,900$48,900 $48,900$48,900 $64,550
Lake County, MI $48,900$48,900 $48,900$48,900 $64,550
Lansing-East Lansing, MI MSA $59,450$59,450 $59,450$59,450 $78,450
Leelanau County, MI $60,300$60,300 $60,300$60,300 $79,600
Lenawee County, MI $62,500$62,500 $62,500$62,500 $82,500
Livingston County, MI HUD Metro FMR Area $75,500$75,500 $75,500$75,500 $99,650
Luce County, MI $48,900$48,900 $48,900$48,900 $64,550
Mackinac County, MI $48,900$48,900 $48,900$48,900 $64,550
Manistee County, MI $48,900$48,900 $48,900$48,900 $64,550
Marquette County, MI $55,350$55,350 $55,350$55,350 $73,050
Mason County, MI $48,900$48,900 $48,900$48,900 $64,550
Mecosta County, MI $48,900$48,900 $48,900$48,900 $64,550
Menominee County, MI $48,900$48,900 $48,900$48,900 $64,550
Midland, MI MSA $59,700$59,700 $59,700$59,700 $78,800
Missaukee County, MI $48,900$48,900 $48,900$48,900 $64,550
Monroe, MI MSA $63,200$63,200 $63,200$63,200 $83,400
Montcalm County, MI HUD Metro FMR Area $48,900$48,900 $48,900$48,900 $64,550
Montmorency County, MI $48,900$48,900 $48,900$48,900 $64,550
Muskegon, MI MSA $49,700$49,700 $49,700$49,700 $65,600
Newaygo County, MI $48,900$48,900 $48,900$48,900 $64,550
Niles-Benton Harbor, MI MSA $53,200$53,200 $53,200$53,200 $70,200
Oceana County, MI $48,900$48,900 $48,900$48,900 $64,550
Ogemaw County, MI $48,900$48,900 $48,900$48,900 $64,550
Ontonagon County, MI $48,900$48,900 $48,900$48,900 $64,550
Osceola County, MI $48,900$48,900 $48,900$48,900 $64,550
Oscoda County, MI $48,900$48,900 $48,900$48,900 $64,550
Otsego County, MI $49,300$49,300 $49,300$49,300 $65,100
Presque Isle County, MI $48,900$48,900 $48,900$48,900 $64,550
Roscommon County, MI $48,900$48,900 $48,900$48,900 $64,550
Saginaw, MI MSA $50,900$50,900 $50,900$50,900 $67,200
Sanilac County, MI $48,900$48,900 $48,900$48,900 $64,550
Schoolcraft County, MI $48,900$48,900 $48,900$48,900 $64,550
Shiawassee County, MI $51,850$51,850 $51,850$51,850 $68,450
St. Joseph County, MI $48,900$48,900 $48,900$48,900 $64,550
Tuscola County, MI $48,900$48,900 $48,900$48,900 $64,550
Wexford County, MI $48,900$48,900 $48,900$48,900 $64,550

More USDA Loan Resources

USDA Direct Loan Income Limits (Low Income)
USDA Direct Loan Limits (Low Income)

All USDA Loan Limits
All USDA Loan Income Limits
USDA Loan Requirements
USDA Loan Programs
USDA Loan Calculator

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