How to Get a Rural Housing Loan
What it is
| At a Glance | |
|---|---|
| Loan Type: | Housing |
| Lender: | Government |
| Secured: | Yes |
A rural housing loan is administered by the United States Department of Agriculture and helps rural families and individuals become homeowners through a rural housing service guaranteed loan. Good credit and a steady income are not always enough to qualify at a commercial lending institution. The Federal Government guarantees the loan so that lending institutions can help buyers while incurring less risk.
These guaranteed loans can be made on either new or existing homes. Existing homes must be structurally sound, functionally adequate and in good repair. There are no restrictions on the size or design of the home financed. The home must not be used for income producing purposes. Typical amenities excluding in-ground swimming pools are allowed. The home must be located in a rural area — open country and places with a population of 10,000 or less and under certain conditions, towns and cities with between 10,000 and 25,000 residents. Eligible areas are determined by United States Department of Agriculture field offices.
Who it's for
A rural housing loan is provided to those who have an adequate and dependable income, are United States citizens or legally admitted to the United States for permanent residence, have credit histories that indicate a reasonable willingness to meet obligations as they become due, and have repayment ability based on the following ratios. Successful household applicants also must have an adjusted annual household income that does not exceed the moderate income limit without a down payment established for the area. A family's income includes the total gross income of the applicant, co-applicant, and any other adults in the household. Applicants may be eligible to make certain adjustments to gross income, such as annual child care expense, and $480 for each minor child, in order to qualify.
What you need to do to apply
Interested home buyers should call or visit the nearest USDA Rural Development field office for information about the program.
Apply for a Rural Housing Loan
Apply online for any type of housing loan at LoanWeb: