RD/USDA Mortgage Loans

Dreaming of owning a home in a rural area? People Driven Credit Union can help make that dream a reality with our RD/USDA Mortgage Loan. These loans, backed by the United States Department of Agriculture (USDA), offer favorable terms and benefits designed to promote homeownership in eligible rural and suburban areas. An RD/USDA Mortgage Loan is a government-backed loan program aimed at helping low-to-moderate-income households purchase homes in eligible rural areas. These loans offer competitive interest rates and flexible credit requirements, making homeownership accessible for more families.

Membership and eligibility requirements apply, with approval subject to application, credit, and property considerations.

Benefits of an RD/USDA Mortgage Loan

No Down Payment: One of the standout benefits of USDA loans is the ability to purchase a home with no down payment, reducing the upfront cost of homeownership.

Competitive Interest Rates: USDA loans typically offer lower interest rates compared to conventional loans, helping you save money over the life of your loan.

Flexible Credit Requirements: USDA loans are designed to accommodate a range of credit scores, making it easier for more people to qualify.

Low Monthly Mortgage Insurance: USDA loans have lower mortgage insurance costs compared to FHA and conventional loans with low down payments.

Finance Closing Costs: In some cases, closing costs can be included in the loan, reducing your out-of-pocket expenses.

Why Choose People Driven Credit Union for Your RD/USDA Loan?

At People Driven Credit Union, we are committed to helping you achieve your homeownership goals. Our team of experienced mortgage specialists will guide you through the RD/USDA loan process, ensuring you understand your options and get the best possible terms.

Expert Guidance: Our mortgage specialists have extensive knowledge of USDA loan requirements and will support you through every step of the application process.

Member Focused: As a member-owned credit union, we prioritize your best interests and strive to offer competitive rates and low fees.

Local Market Knowledge: We have a deep understanding of the local housing market and can offer valuable insights to help you make informed decisions.

Frequently Asked Questions

Who is People Driven Credit Union's Mortgage Specialist?

Meet Our PDCU Mortgage Specialist

Michelle Dzon is authorized to act as an agent on behalf of People Driven Credit Union. Contact her for personalized assistance with your mortgage needs.

Michelle Dzon

Member First Mortgage

michelle.dzon@memberfirstmortgage.com

616-301-1714 | NMLS ID: #401292

What is an RD/USDA Mortgage Loan?

An RD/USDA Mortgage Loan is a home loan backed by the United States Department of Agriculture (USDA), designed to help low-to-moderate-income households purchase homes in eligible rural and suburban areas. These loans offer favorable terms, including no down payment and competitive interest rates.

Who is eligible for an RD/USDA Mortgage Loan?

Eligibility for a USDA loan is based on income and location. Applicants must meet income limits, which vary by area and household size, and the property must be located in an eligible rural or suburban area as defined by the USDA. You can check eligibility on the USDA’s website or contact one of our mortgage specialists for assistance.

What are the benefits of a USDA Mortgage Loan?

No Down Payment: Purchase a home without needing a down payment.
Competitive Interest Rates: Benefit from lower interest rates compared to conventional loans.
Flexible Credit Requirements: Qualify with a range of credit scores.
Low Monthly Mortgage Insurance: Enjoy lower mortgage insurance costs compared to FHA and conventional loans.
Finance Closing Costs: In some cases, closing costs can be included in the loan amount.

What types of properties can be financed with a USDA loan?

USDA loans can be used to finance single-family homes in eligible rural and suburban areas. The property must be used as the borrower’s primary residence and meet certain quality standards set by the USDA.

How much can I borrow with a USDA Mortgage Loan?

The amount you can borrow with a USDA loan depends on your income, debts, and the property’s value. There are no set maximum loan limits for USDA loans, but the loan amount must not exceed your ability to repay.

What Factors Impact My USDA Loan Amount?

While USDA loans don’t have official loan limits like FHA loans or conventional loans, several factors still influence how much you can borrow. These include your gross household income, monthly debts, credit profile, and the appraised value of the home. The USDA requires that your total monthly mortgage payment (including taxes and insurance) stays within a specific debt-to-income (DTI) ratio—usually around 41%.

Don’t Forget About USDA Income Limits

USDA loans are designed to help moderate-income families, which means your eligibility—and loan amount—will depend in part on where you live. Each area has specific income limits based on household size and median income. If your household income exceeds the local limit, you may not qualify for a USDA loan, regardless of the property price.

Getting Prequalified Is the Best First Step

If you're wondering how much you can borrow, the best next move is to get prequalified by a USDA-approved lender. Prequalification gives you a clearer idea of your loan potential based on your income, credit, and debts—so you can shop for homes with confidence and stay within your budget.

Have More Questions? Contact PDCU to Learn More

If you are considering a USDA loan, contact our loan specialist to learn more. We also have a variety of other mortgage products that might meet your needs. When you have questions, People Driven Credit Union has answers.

Do USDA loans require mortgage insurance?

Yes, USDA loans require mortgage insurance. There is an upfront guarantee fee, which can be financed into the loan, and an annual fee that is paid monthly. However, these costs are generally lower than the mortgage insurance premiums for FHA and conventional loans with low down payments.

Buying a Fixer-Upper? USDA Loans May Not Be the Right Fit

USDA loans are designed for move-in-ready homes. If you’re thinking about purchasing a fixer-upper or a property that needs significant work, this loan type may not be ideal. That said, the USDA does offer separate programs—such as the Section 504 Home Repair loan—for eligible homeowners who want to make limited improvements or repairs.

How Long Does it Take to Get a USDA Loan Approval?

While the timeline to close on a USDA loan can be similar to conventional loans, it often takes a bit longer due to an additional approval step by the USDA itself. After your lender completes underwriting, the loan must also be reviewed and signed off by the USDA, which adds a few extra days to the timeline. Typically, you can expect the process to take between 30 and 45 days, depending on your location and how quickly documents are submitted.

Contact PDCU to Learn More About USDA Loans

If you think a USDA loan might be right for you, contact our loan specialist to learn more. We also have a variety of other mortgage products that might meet your needs. People Driven Credit Union is here for you for every step of your home ownership journey.

What is the USDA loan process?

The USDA loan process involves several steps:

Pre-qualification: Determine if you meet basic eligibility requirements.
Pre-approval: Submit financial documents for a more detailed evaluation.
Property Selection: Find a home in an eligible rural or suburban area.
Loan Application: Complete a formal loan application and provide necessary documentation.
Underwriting: The lender reviews your application and the property’s appraisal.
Approval and Closing: Once approved, you’ll sign the final loan documents and close on your new home.

Can I use a USDA loan to refinance my existing mortgage?

Yes, USDA loans can be used to refinance an existing mortgage through the USDA's Streamlined Refinancing Program, which offers reduced documentation requirements and can help lower your interest rate or adjust your loan term.

What documentation is required for a USDA loan application?

Typical documentation includes proof of income, tax returns, employment verification, credit history, and details of your current financial obligations. Our mortgage specialists will provide a comprehensive list of required documents based on your specific situation.

How do I apply for a USDA Mortgage Loan with People Driven Credit Union?

Apply online or contact our mortgage specialist, Michelle Dzon, who will guide you through the application process, help you understand your options, and determine your eligibility. Michelle Dzon is authorized to act as an agent on behalf of People Driven Credit Union. Contact her for personalized assistance with your mortgage needs.

Michelle Dzon

Member First Mortgage

michelle.dzon@memberfirstmortgage.com

616-301-1714 | NMLS ID: #401292

Disclosures

Equal Housing Lender. Member First Mortgage, LLC (MFM) NMLS ID# 149532. All loans are subject to credit approval. Terms and conditions apply. Program availability is subject to change without notice.

Available to all members using a conventional mortgage loan program on a purchase transaction with People Driven Credit Union in the State of Michigan. Not eligible on multi-unit properties, condos, townhomes, or manufactured houses. The Loan Example is current as of 9/9/2025 and based on a $200,000 loan amount with a conventional 30-year fixed rate term (360 monthly principal and interest payments of $1,231.43); 0% Down Payment; 6.25% Interest Rate with an Annual Percentage Rate (APR) of 6.465%. Rates quoted assume excellent borrower credit history. Payment example does not include taxes and insurance; the actual payment obligation will be higher. The cost of Private Mortgage Insurance (PMI) is waived as part of this promotion, to be paid by the Lender. This is not a commitment to lend. All lending products are subject to credit and property approval. Additional restrictions may apply. Member First Mortgage, LLC (MFM) is a partner of People Driven Credit Union. Michelle Dzon #401292, is authorized to act as agent of People Driven Credit Union (24333 Lahser Road, Southfield, MI 48033 | (248) 263.4100 | NMLS ID: 776727) and is authorized to represent Member First Mortgage, LLC, a licensed Mortgage Lender/Servicer (Corporate Office: 616 44th Street SE, Grand Rapids, MI 49548 | (616) 538.1818 | NMLS ID: 149532). For licensing information, please visit www.nmlsconsumeraccess.org. Equal Housing Opportunity.

SAFE Act Compliance Testing:
We conduct annual independent testing of our mortgage compliance in accordance with the SAFE Act (Reg G) requirements.

All other trademarks are the property of their respective owners.

People Driven Credit Union is an Equal Housing Opportunity Lender NMLS #776727

Membership Requirement:

All accounts and loans require membership at People Driven Credit Union. Membership is available to individuals who live, work, worship, or attend school in the State of Michigan, as well as relatives of current members. To complete an application for any account or loan, you will need the following information:

A valid Driver's License, State ID, or Passport with your current address
Your Social Security Number

A Membership Share Savings Account is required to establish membership at People Driven Credit Union. A $5 deposit secures your ownership share in the credit union and unlocks access to our full suite of products and services. This account earns 0.01% APY with a $5 minimum deposit.

RD/USDA Mortgage Loans

Helping low-to-moderate-income households purchase homes in eligible rural areas.