Have you always wanted to live in a rural area, but you’re not sure if you’ll qualify for a home loan because of your income? The USDA Rural Development Single Family Housing Guaranteed Loan Program may be your answer.

 

The USDA Rural Development Single Family Housing Guaranteed Loan Program, also known as a “USDA loan” or a “Section 502 loan,” is a program that makes homeownership possible for low and moderate income families who want to live in rural communities.

 

Backed by the U.S. Department of Agriculture (USDA), this program enables eligible, first-time and repeat home buyers in qualified suburban and rural areas to get a 100%, no-money-down home loan at better-than-average mortgage rates.

 

With this program, you:

• Must be a U.S. citizen, U.S. non-citizen national or a qualified alien.
• Must meet income eligibility requirements.
• Must build or purchase a home within an eligible rural area. Note: 97% of the U.S. is eligible for a USDA loan – only 3% isn’t eligible.
• Can use the funds to make eligible repairs and improvements to the homre. Or, you can relocate a dwelling within an eligible rural area.
• Don’t have a maximum loan size. The amount you can borrow is limited by your household’s debt-to-income ratio.
• Can get a 15-year or 30-year fixed rate mortgage. There are no adjustable-rate mortgages available.
• Don’t have to make a down payment.
• Can use gift funds for your closing costs.
• Are required to pay mortgage insurance. Your mortgage insurance premiums will include an upfront fee and an annual fee that’s added to your monthly payments.
• Must live in the home as your primary residence.
• Must be willing to meet your credit obligations in a timely manner.
• Don’t have to attend homeowner counseling.
• Can refinance USDA loans.

 

If you’re thinking of buying a home in rural area and want to finance it with a USDA loan, contact the mortgage specialists at Grandview Lending by calling 1-866-690-4920. Or, complete our online form. We can answer any questions you may have as well as check your eligibility for the program and the location eligibility of the area in which you wish to purchase a home.

 

Photo credit: 123RF / Iriana Shiyan