Lake Michigan Credit Union approved to offer guaranteed rural housing construction-perm loans through USDA
GRAND RAPIDS, MI (May 18, 2018) — Lake Michigan Credit Union (LMCU) is proud to have been approved to offer Guaranteed Rural Housing Construction-Perm loans through the United States Department of Agriculture (USDA).
The Rural Development loan program was primarily designed to allow low to moderate income households to purchase existing structures in designated rural areas. The program has since been expanded to include a pilot program that finances new residential construction – the Guaranteed Rural Housing Construction-Perm program.
Lake Michigan Credit Union was one of the first financial institutions in Michigan to be approved for this pilot program.
The Guaranteed Rural Housing Construction-Perm program is a one-time close government mortgage, guaranteed by U.S.D.A. – Rural Development (RD). The interest rate is fixed for the entire term of the loan, including the construction period. This program provides home ownership opportunities for low and moderate income families in rural areas.
From the USDA website:
https://www.rd.usda.gov/programs-services/single-family-housing-guaranteed-loan-program/mi
“This program helps lenders work with low and moderate income families living in rural areas to make homeownership a reality. Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas.”
Property requirements: http://eligibility.sc.egov.usda.gov
Household income eligibility: https://www.rd.usda.gov/files/RD-GRHLimitMap.pdf
LMCU’s Mortgage Sales Manager, Jim Paquette (Brighton) said, “At the origination level, we are very excited to offer Guaranteed Rural Housing Construction financing. This program opens up new construction financing to buyers who may not have the funds to invest, or the credit profile needed, to meet existing draw loan requirements.
“Lake Michigan Credit Union is the #1 construction lender in Michigan. I think this program is a perfect fit, given our expertise in the draw loan process and our focus on member service. The timing of this approval could not have been more favorable. With the lack of existing home inventory, the only option many buyers have is the construction of a new home.”
Paquette stated that Rural Development mortgages are not applicable for agricultural properties, farms and other commercial business entities. “Anything income-producing will disqualify the property. The focus of a Rural Development loan is standard, single family housing located in a rural development-designated area. In some counties, a family of five or more could have a household income of $100,000 per year and still fall within the moderate income range. This loan program has the potential to fit the needs of a many traditional home owners.”
About Lake Michigan Credit Union
Lake Michigan Credit Union (LMCU) is the largest credit union in Michigan. Employing a staff of over 1,550 and serving over 520,000 members, LMCU's assets exceed $11.5 billion, with a mortgage servicing portfolio of over $13 billion. LMCU has 65 convenient branch locations overall, including 19 in southwest Florida. LMCU members have access to over 55,000 Allpoint ATMs worldwide. LMCU provides a full range of financial services, from high interest-bearing checking accounts to personal loans, mortgages, investments, and commercial banking.
To find out more, visit LMCU.org.
