OVERVIEW: The U.S. Department of Agriculture – Rural Development provides loans and loan guarantees to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. Loans are for 30 years and the lender determines the interest rates. There is no required down payment. The lender must also determine repayment feasibility. Housing must be modest in size, design, and cost. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and Housing and Community Facilities Programs (HCFP) thermal and site standards. New Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards. Existing manufactured housing will not be guaranteed unless it is already financed with an HCFP direct or guaranteed loan or it is real estate owned formerly secured by an HCFP direct or guaranteed loan.
TIMETABLE: Families who lack adequate housing and who have an income of up to 115% of the median income for the area should apply for this loan when looking to improve their housing situation.
APPLICATION PROCESS: Loans are available through approved lenders. For a complete list the USDA Service Center.
TAGS: home, loan, rural