Rural Housing Site Loans in Michigan

The Rural Housing Site Loans program provides financing to purchase and develop housing sites for low- and moderate-income families in rural areas. The program offers two loan types: Section 523 loans, which are used to acquire and develop sites exclusively for housing constructed by the Self-Help method, and Section 524 loans, which finance the acquisition and development of sites for low- or moderate-income families without construction method restrictions. Low income is defined as 50 to 80 percent of the area median income (AMI), while moderate income extends up to 115 percent of the AMI.

Eligible applicants include private or public non-profit organizations and Federally-recognized Tribes. Applicants must demonstrate the legal authority to operate a revolving loan fund as well as the financial, technical, and managerial capacity to comply with applicable federal and state regulations. For Section 523 loans, entities must commit sites solely for self-help housing. For Section 524 loans, building sites must be sold to low- or moderate-income families utilizing USDA Single Family Housing loan programs or other mortgage financing serving low- and moderate-income households.

Eligible projects must be located in rural areas meeting USDA eligibility criteria. Loan funds must be utilized to purchase and develop housing sites complying with site development standards and policies in RD Instructions 1924-A and 1924-C. Loans have a 5-year term, with Section 523 loans carrying a fixed 3 percent interest rate and Section 524 loans carrying a below-market interest rate established monthly and fixed at closing.

Applications are accepted on an ongoing, year-round basis. Applicants must apply directly through the USDA Rural Development Michigan State Office.