Rural development loans come in three different forms:
Do you have a low to moderate income and want to buy a house in a rural area? Contact an approved local lender to secure a traditional mortgage, and the Department of Agriculture will serve as a guarantor. This service secures your loan at a low-interest rate with little or no down payment. These loan guarantees can even be used to cover repairs to existing properties, closing fees, and the costs of establishing utility connections.
Buyers with incomes classified as low or very low can be eligible for short-term payment assistance, making their mortgages more affordable. After receiving direct loan assistance, buyers’ interest rates can drop as low as 1%, with payback periods up to 38 years. Applications for this program are accepted throughout the entire year.
If you can’t secure credit through traditional means the USDA may provide you a loan of up to $20,000 to modernize your home. And it might sound too good to be true, but they also provide grants of up to $7,500 to remove health and safety hazards from a property. If you stay in your home for three years after the grant is distributed then it never has to be repaid. This program has income eligibility requirements with special inclusions for seniors.
All three facets of the Rural Development Loan program are focused on providing Americans with decent, safe, and sanitary homes, ensuring that families outside of cities enjoy a fruitful quality of life. Each program requires participants to be United States citizens and to use the home as a primary residence – this isn’t meant for investors or speculators. Homes also need to be located in rural areas, which the USDA generally defines as having a population under 35,000.More guidelines can be found at the Department of Agriculture website, or if you want a personal consultation about how this tool and others can make your homeownership dreams become a reality, contact Jessica and Sarah today!