A USDA Home Loan from the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program
A USDA Home Loan from the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, is a mortgage loan offered to rural property owners by the United States Department of Agriculture.
What does this program do?
The Section 502 Guaranteed Loan Program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may purchase, build, rehabilitate, improve or relocate a dwelling in an eligible rural area with 100% financing. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers – so no money down for those who qualify!
The good news is that borrowers still have something they can do president at mortgage-data provider our experts.
USDA home loan vs traditional mortgage
A USDA home loan is different from a traditional mortgage offered in the United States in several ways.
- USDA loans require no down payment, meaning that it is possible to finance up to 100% of the property value.
- One must meet the income restrictions for the County the buyer is interested in. Each county has a maximum Income Requirement. The USDA Home Loan Program does allow for considerations for expenses like Child Care.
- To be eligible, one must be purchasing a property in a rural area as defined by the USDA.
- The home or property that the potential is looking to purchase must be owner-occupied, investment properties are not eligible for USDA loans.
What is an eligible area?
Generally, rural areas with a population less than 35,000 are eligible. Visit the USDA Income and Property Eligibility website for complete details.
USDA Website staff date unknown USDA Home Loans https://www.rd.usda.gov/programs-services/single-family-housing-direct-home-loans/az