USDA Rural Development Mortgage
USDA rural development loans are low-interest mortgages with zero down payments designed for Americans who are planning agricultural business development.
What are USDA rural development loans are used for?
Not everyone can take a USDA rural loan. You must fall into one of the following categories:
1. Agrarian. The loan is provided for the purchase of plant protection products, as well as fuels and lubricants and fertilizers, planting material, transport and spare parts for repaired equipment;
2. Livestock breeder. The borrowed money can be spent on the purchase of young animals and feed, as well as veterinary drugs, as well as used to pay insurance premiums;
3. Individual entrepreneurs whose activities are related to the processing of agricultural products. Borrowed funds can be used to buy young cattle, feed and veterinary drugs, industrial equipment and transport, flour, grain, etc. You can also use the money to pay for insurance.
What are the loan requirements?
Individuals who meet the following requirements can get a USDA rural development loan Michigan:
- borrower’s age – 18-65 years;
- U.S. citizenship;
- official employment and income;
- you must not participate in other U.S. grant program.;
- no credit debt;
- a farm registration certificate or a farm specialization license;
- official sureties and collateral (this can be a future harvest, machinery, buildings, land).
The applicant provides the banking institution with an application and identity documents. If there is a third-party guarantor, the surety procedure must be formalized through the court, and the relevant documents must be submitted to the banking institution.