Are you looking to purchase a home in a rural community but wondering where to begin looking for help with a home mortgage? Good news! The U.S. Dept. of Agriculture (USDA) has developed a home loan guarantee program that can help you find a lender and obtain a home loan mortgage. The USDA Rural Development program offers partnered lenders a guarantee on loans provided to qualified borrowers for housing in rural communities.
The United States Department of Agriculture (USDA) sets lending guidelines for the program, which is why it is also called the USDA Rural Development (RD) Loan. This mortgage type reduces costs for home buyers in rural and suburban areas. It is one of the most cost effective home buying programs in the marketplace today. Since its inception in 1949, the USDA Rural Development loan has helped over 1 million home buyers obtain housing with little or no money down.
A USDA Rural Development home loan offers qualified borrowers a chance to obtain a home loan with easier qualifications and financing options than other conventional loans. The program has partnered with selected lenders in all states who will loan the money with a repayment guarantee from the USDA. This offers lenders confidence in providing loans to qualified candidates who meet the USDA Rural Development underwriting guidelines.
The USDA Rural Development program has no maximum purchase price limit. However, a lender will still determine the maximum amount of loan each applicant is eligible for based on ability to repay. Home repairs can be included in loan. Homes that need refurbishing or rehabilitation may qualify for extra funds to be included in the home loan mortgage to go toward repair costs.
Any individual or family who plans to occupy a home located in an eligible rural area as their primary residence may qualify for a USDA Rural Development home loan. The property location is very important with the USDA loan and borrowers can search USDA’s maps to browse certain areas or pinpoint a specific address.
For complete details please visit the official USDA website.