There are specific income caps for Rural Development loans in Calhoun County, Michigan. Each County in the State has a specified income requirements assigned by USDA Rural Development that oversees the guidelines for this loan program.
In Calhoun County, a household income of 1 to 4 people cannot exceed $74,050.00 per year. The
household income of 5-8 people cannot exceed $97,750.00 per year. The income is verified by the lender by obtaining a copy of the prior year's W-2 and recent pay stub of each working member of the household over 18 years old. This can include adult children living in the household.
Another credit guideline is that the borrower must have a credit score of 620 minimum if they have clean credit. If they have a challenged credit history, they must have a credit score of 660 and a letter of explanation for the challenged credit history. A challenged credit history may include bankruptcy discharged for less than 3 years, a foreclosure in less than 2 years and/or judgments and recent non-medical collections within the last 12 months.
The house must also meet USDA rural development requirements in terms of location. They must be located in a rural area as defined by their maps. To review this map, visit my website at: www.michaeldelaware.com and look for the ‘Rural Development Eligibility' link on the left hand column. The home must also have a passing well inspection, septic inspection and water quality test.
Rural Development loans in Calhoun County, Michigan are a great first time home buyer program and allow the buye
r to obtain 100% financing with no down payment. The buyer can also ask for the seller to cover up to 6% of the closing costs, and any closing costs not covered by the seller concessions can be rolled into the financing for the loan.
Additional items the loan will allow to be rolled into the loan are specific appliances like a refrigerator and stove. They will also allow upgrades to higher energy efficient models of a water heater and furnace, and also repairs required by the appraisal. Rural Development loans in Calhoun County, Michigan are a great first time home buyer program, and it is the first program I usually try to get home buyers into because of all the added benefits.
As a local Realtor in Battle Creek, I have helped many first time home buyers with this program and am very familiar with all its requirements. I can be reached at: 269-441-8182 or you can contact me through my website at: www.michaeldelaware.com.
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