2016 USDA / Rural Development Changes!
HUGE Announcement!!!!
The USDA made some major improvements to the Single Family Housing Guaranteed Loan Program also know as a Rural Development loan. The upfront guarantee fee changed from 2.75% to 1% of the loan amount and the annual fee changed from .5% to .35% of the average scheduled unpaid principal balance for the life of the loan. What’s that mean????
Here is a 150,000 example:
| Old Program | New Program | |
|---|---|---|
| Upfront Fee | $ 4,241.63 | $ 1,515 |
| Monthly Fee | $63.75 | $43.84 |
Now the really cool thing is the RD loan program is once again in many cases much more attractive to home buyers than an FHA loan. Lets run a quick comparison.
FHA VS RD $150,000 price, assuming 4% interest rate, $200 for property taxes, & $80 for insurance
| FHA | Rural Development | |
|---|---|---|
| Principle & Interest | $703.15 | $723.36 |
| Insurance | $80 | $80 |
| Taxes | $200 | $200 |
| Mortgage Ins. (PMI) | $101.71 | $43.84 |
| Total payment: | $1,084.86 | $1,047.20 |
| Down Payment Required | $5,250 | $0 |
| So RD saves $38 per month and is zero down! | ||
For more information feel free to reach out to me or download this flyer!
Latest Blog Post
Conventional vs USDA Loan Michigan: Your 2026 Mortgage Flight Plan
The “obvious” choice for your mortgage might actually be the most expensive path if you don’t account for the unique terrain of the West Michigan housing market. While you might assume a massive down payment is the only way to avoid financial turbulence, comparing a Conventional vs USDA Loan Michigan reveals that the right flight plan often involves much less upfront cash than expected.
We understand that staring at a map of geographic eligibility or weighing monthly mortgage insurance costs can feel like flying through heavy fog. It’s frustrating when you’re ready to move but feel grounded by confusing requirements. This guide will help you compare these options with the precision of a seasoned navigator. You’ll learn how to identify if your dream neighborhood is USDA-eligible, how the 2026 loan limit of $832,750 impacts your Conventional path, and how the $119,850 income limit affects your USDA eligibility. By the end of this flight plan, you’ll have the expert coordinates needed to choose a loan that offers maximum lift for your West Michigan home journey.