Wondering if you will ever be able to buy an affordable home? The task of saving for a down payment can be harder than it seems. But if the thought of living in a peaceful and quiet rural area sounds appealing than there is good news for you! The Michigan State Housing Development Authority (MSHDA) offers a 30-year fixed rate Rural Development Guaranteed loan which is available to low-to-moderate income families. Those who meet the eligibility requirements can take advantage of no down payment and no monthly PMI.
We sat down with Jeff from Lake Michigan Credit Union to get the scoop on the self-titled “RD Loan”. A few of the highlights from our conversation revolved around the exciting perks one would have from going with this type. You have the option to use the RD Loan two ways: you can purchase an already built home with $0 down, or you can also finance your land purchase as well as construction of a new home in one loan. Financing the construction of a new home with the RD loan is particularly favorable because there is no down payment required like other construction loan programs. Imagine your first home being brand new and customized by you! Jeff mentioned also that interest rates have dropped in the last year so now is a great time to buy. Another bright spot we discussed were the millage rates in rural areas. Since these rates are typically lower than within city limits, you will enjoy lower property taxes. This could potentially amount to a savings of over a hundred thousand dollars over the life of the loan.
Several of the communities Maplewood Homes builds in are located within the RD Loan eligible areas such as Allendale, West Olive and Ludington. With new inventory homes available to purchase and the option to custom build, the options are endless. If you’d like to learn more about the communities we build in, visit our website for more information: https://maplewoodhomes.com/communities/