These specialty loans are administered by the U.S. Department of Agriculture. The program was designed to improve the economy and quality of life in rural America. These mortgages are given to qualified individuals buying homes in rural areas, small towns, and even some suburban areas. Applicants need to be U.S. citizens or permanent resident aliens with a qualifying debt-to-income ratio, have a qualifying credit score, and have a two-year employment history.
Rural development mortgages are designed for homebuyers who might not otherwise be able obtain a traditional mortgage. Thus, borrowers must have an income below the published income limits for their location and family size. There are several key benefits that make rural development mortgages helpful. USDA mortgages do not require a down payment or monthly mortgage insurance, making it more affordable for those purchasing a home. It also offers purchasers the option of financing closing costs or some home repairs along with the mortgage.
Who can apply for this program?
A number of factors are considered when determining an applicant’s eligibility for USDA loans. At a minimum, applicants must have an adjusted income that is at or below the applicable low-income limit for the area where they wish to buy a house and they must demonstrate a willingness and ability to repay debt.
Properties financed with direct loan funds must:
Let us know if you have questions and/or think you may be interested in a rural development loan.
Make sure you go over your financial situation with your loan officer before making the decision. Our team will help you decide on a solution for you and your family. Call 877.312.9033 to get started.