USDA Rural Housing Loan Program

The U.S. Department of Agriculture offers a variety of programs to help low to moderate-income individuals living in small towns or rural areas achieve homeownership. The USDA Rural Devolpment Guaranteed Home Loans helps qualified applicants purchase a primary residence. There are a number of key factors regarding USDA home loans:

  • Minimal closing cost (seller can pay up to 6% of the sale price towards closing costs)
  • Low or no down payment
  • The subject property must be your primary residence
  • The property can not be used for income purposes or even the potential for income producing purposes (e.g. hobby farm, etc.)
  • Manufactured homes are generally ineligible unless the manufactured home is less than one year old and has never been occupied.
  • USDA home loans do have an income cap for the Guaranteed Loan program. That cap is based on family/household size and a number of other variables.

USDA loans can be used toward the purchase and or even refinance if the current home loan is an existing USDA home loan.

Families must be able to pay their monthly mortgage, homeowner's insurance and property taxes.

The USDA has a specific web site to see if a particular property is eligible for USDA financing. To look up a property to see if it is eligible go to:

 http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
 

Contact me to find out if you qualify for an RHS loan!