What Are USDA Home Loans
For those looking to purchase a home in a rural area, a USDA Home Loan is a zero down payment mortgage that can make planting your roots that much easier! These loans are issued through the USDA Loan Program known as the Rural Development Guaranteed Housing Loan Program, a product of the United States Department of Agriculture.
Who can apply for USDA Home Loans?
- Those who meet income restrictions
- Those who will personally occupy the dwelling as their primary residence.
- Individuals who are US Citizens, US Non-Citizen National, or Qualified Aliens
- Those who have the legal capacity to incur the loan obligation
- Those who have not been suspended or debarred from participation in federal programs
- Those who demonstrate the willingness to meet credit obligations in a timely manner
- Those who are to purchase property that meets all program criteria.
How can loan guarantees be used?
- New or existing residential property that will be used as a permanent dwelling for the applicant. Closing cost and reasonable/customary expenses associated with the purchase may be included in the transaction.
- A site with a new or existing dwelling
- Repairs and rehabilitation when associated with the purchase of an existing home
- Refinancing of select eligible loans
- For building or maintenance of special design features permanently installed equipment to accommodate a household member who has a physical disability.
There are more ways these loans can be used, and specifications for those who can apply and how to do it. For more information regarding if you and your plans are eligible, contact us now!
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. Click HERE to see a USDA Home Loan fact sheet!