USDA – Guaranteed Rural Housing Loan Program

Deciding on a mortgage plan that will allow you and your family to live in peace, harmony, and health can no doubt be a stressful undertaking. You want to make a choice that will get you what you want, but you don’t want to break the bank doing it or wind up tied down to high interest rates that you can’t afford. That’s where certain housing loan programs can really be a big help!

The USDA Guaranteed Rural Housing Loan Program is known for its dedication to giving families what they need most – a clean, adequate place to call home where they can live their lives in safety. Eligible applicants are those who do not exceed median income limits set in place by the state. Eligible properties are those that are officially designated as rural by Rural Development.

What are the benefits to applying for the Guaranteed Rural Housing Loan Program?

• One of the biggest obstacles for most people when it comes to buying a home is coming up with the down payment. USDA loans do not require a down payment of any sort. Those approved for loans can enjoy the convenience of financing the entire balance of their loan. Alternatively, they can apply grants or other monetary gifts toward the loan up front, but only if they wish to.
• There are no maximum purchase price limits attached to the USDA Rural Development program either.
• This loan program works with the consumer and their situation, as opposed to against them. Although credit rating does matter and affect whether or not you’ll be approved, their credit requirements are relatively flexible. Interest rates are also quite competitive.

Who is eligible for a Guaranteed Rural Housing Program loan?

• Those applying for inclusion in this loan program must be employed and be able to show proper proof of employment so that income can be verified.
• Although the USDA is lenient when it comes to credit requirements, applicants still must meet certain guidelines. Credit history must at least show that the applicant is likely to be willing and able to take care of repayment.
• Individuals applying for these loans should be planning on living on rural property that has been deemed eligible by the program. They must also be planning on making it their primary place of residence.
• All applicants must show that they meet the legal requirements to own a home or any property in the USA. They also must be able to show proper proof that they don’t have the resources available to meet the requirements necessary for a standard mortgage. Lastly, they cannot already be homeowners.

Overall, this is a good, solid program for people and families looking to own a home, but who are in need of little bit of a leg up when it comes to meeting the eligibility requirements necessary to be approved for a traditional mortgage – especially if they are looking to enjoy the peace and quiet of rural living.