USDA loans
A zero-down mortgage for eligible rural and suburban buyers.
USDA loans, backed by the U.S. Department of Agriculture, are designed to make homeownership possible in eligible rural and suburban areas. Despite the name, USDA loans cover a lot more of Michigan than most people expect — including many communities just outside the metro Detroit area.
What is a USDA loan?
A USDA loan is a mortgage guaranteed by the U.S. Department of Agriculture through its Section 502 Guaranteed Loan Program. Private lenders like the ones Belong Lending works with fund the loan, and USDA guarantees a portion — which is what allows for 0% down financing.
USDA loans are for primary residences only and are limited to properties in USDA-designated eligible areas.
Property and income eligibility
USDA loans have two eligibility layers: the property must be in an eligible area, and the household income must fall under a limit set for the county. Income limits are typically around 115% of the area median income and account for household size.
The USDA eligibility map covers a lot more Michigan than most buyers realize. Communities like Milan, Flushing, Fowlerville, Chelsea, and even parts of Livingston and Genesee counties often qualify. Belong Lending checks eligibility on the specific property address at pre-approval.
USDA guarantee fee
USDA loans replace mortgage insurance with a two-part guarantee fee: an upfront fee of 1.00% of the loan amount (usually financed into the loan) and an annual fee of 0.35% of the loan balance (paid monthly). These fees are lower than FHA mortgage insurance.
Key benefits
- 0% down payment for eligible borrowers
- Lower monthly mortgage insurance equivalent than FHA
- Fixed 30-year term with competitive rates
- Closing costs may be gifted or come from seller concessions
- Available in many suburban Michigan communities, not just remote rural areas
Who this loan fits best
- First-time buyers in eligible rural and suburban Michigan communities
- Buyers who cannot put money down but have steady income
- Households with moderate income who fall under USDA income limits
Estimate your monthly payment
USDA payment calculator
Estimate only. Actual rate, taxes, insurance, and mortgage insurance depend on your specific loan and property. Belong Lending confirms your exact payment at pre-approval.
Serving Detroit and surrounding Michigan communities
Belong Lending helps borrowers with USDA loans across Detroit, Troy, Southfield, Ann Arbor, Flint, Livonia, Warren, Sterling Heights, Farmington Hills, Novi, Rochester Hills, Dearborn, and beyond — plus additional coverage throughout Wayne County, Oakland County, Macomb County, Washtenaw County, Livingston County, Genesee County. We also lend on eligible properties in Ohio, Florida, Georgia, and Texas.
Frequently asked questions
Where can I use a USDA loan in Michigan?
USDA eligibility covers most of Michigan outside the immediate Detroit metro. Communities like Milan, Flushing, Fowlerville, Chelsea, Manchester, and parts of Livingston and Genesee counties qualify. Belong Lending checks the exact address on the USDA eligibility map during pre-approval.
What is the income limit for a USDA loan?
USDA income limits are based on the county and household size, and typically top out around 115% of the area median income. In many Michigan counties, that is roughly $110,000 – $135,000 for a household of four. Belong Lending confirms the limit for your county.
Do USDA loans require mortgage insurance?
USDA loans do not have traditional mortgage insurance, but they carry a two-part guarantee fee: 1.00% upfront (which can be rolled into the loan) and 0.35% annually (paid as part of the monthly payment). This is generally lower than FHA mortgage insurance.
Can I use a USDA loan on a manufactured home?
Yes, in some cases. USDA loans are available on new manufactured homes that meet specific requirements. Belong Lending will confirm eligibility with the lender before you shop.