To be eligible, applicants must:
Have an adequate and dependable income;
Be a U.S. citizen, qualified alien, or be legally
admitted to the United States for permanent
residence;
Have an adjusted annual household income that does
not exceed the moderate income
limit 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 expenses and $480for each minor
child—in order to qualify.
USDA Rural Development field offices can provide
information on the moderate income limits
for the areas that fall within their jurisdiction, and can
provide further guidance on calculating
household income. There is an automated income
eligibility calculator at:
http://eligibility.sc.egov.usda.gov;
Have a credit history that indicates a reasonable
willingness to meet obligations as they
become due;
Have repayment ability based on the following ratios:
Principle, Interest, Taxes, and Insurance
(PITI) divided by gross monthly income must be
equal to or less than 29 percent.
Total debt divided by gross monthly income must be
equal to, or less than, 41 percent.
Homes That Qualify:
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;
Homes must be located in rural areas. Rural areas
include 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.
USDA Rural Development field offices can determine
eligible areas.
Highlights of the USDA Guaranteed Rural Housing
Loan Program
Loans may be for up to 100 percent (102 percent if
the guarantee fee is included in the
loan) of appraised value or for the acquisition cost,
whichever is less.
No downpayment is required;
Mortgages are 30-year fixed rate at market interest
rates;
Loans may include funds for closing costs, the
guarantee fee, legal fees, title services, cost of
establishing an escrow account and other prepaid
items, if the appraised value is higher
than sales price;
Sellers may contribute to the buyer’s closing costs;
Home buyers make application with participating
lenders;
Buyers must personally occupy the dwelling following
the purchase;
Loans may be made to refinance either existing USDA
Rural Development Guaranteed
housing loans or our Section 502 Direct housing loans;
For purchase loans, a one-time guarantee fee equal to
2.0 percent of the loan amount is
charged to the lender.
The charge for refinance loans is 0.5 percent.
Typically, the lender passes on this expense to the
borrower as a closing cost.
After the one-time fee is paid, there is no recurring
monthly expense charged for guaranteeing
the loan;
Closed loans have secondary market acceptability,
including Freddie Mac, Fannie Mae,
Ginnie Mae pools, and many state housing finance
agencies;
Guaranteed loans are subject to the provisions of the
Civil Rights statutes, including the Equal
Credit Opportunity Act.
We’re Here to Help Interested home buyers should
call or visit their local lender or the nearest USDA
Rural Development field office for information about
the program. USDA Rural development field office
staff will refer potential applicants to participating
lenders.
Lenders interested in becoming approved to
participate in the program may also contact
USDA Rural Development for further information.
USDA offices are listed in the government section of
the telephone book under “United States
Government, Department of Agriculture.”
Have an adequate and dependable income;
Be a U.S. citizen, qualified alien, or be legally
admitted to the United States for permanent
residence;
Have an adjusted annual household income that does
not exceed the moderate income
limit 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 expenses and $480for each minor
child—in order to qualify.
USDA Rural Development field offices can provide
information on the moderate income limits
for the areas that fall within their jurisdiction, and can
provide further guidance on calculating
household income. There is an automated income
eligibility calculator at:
http://eligibility.sc.egov.usda.gov;
Have a credit history that indicates a reasonable
willingness to meet obligations as they
become due;
Have repayment ability based on the following ratios:
Principle, Interest, Taxes, and Insurance
(PITI) divided by gross monthly income must be
equal to or less than 29 percent.
Total debt divided by gross monthly income must be
equal to, or less than, 41 percent.
Homes That Qualify:
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;
Homes must be located in rural areas. Rural areas
include 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.
USDA Rural Development field offices can determine
eligible areas.
Highlights of the USDA Guaranteed Rural Housing
Loan Program
Loans may be for up to 100 percent (102 percent if
the guarantee fee is included in the
loan) of appraised value or for the acquisition cost,
whichever is less.
No downpayment is required;
Mortgages are 30-year fixed rate at market interest
rates;
Loans may include funds for closing costs, the
guarantee fee, legal fees, title services, cost of
establishing an escrow account and other prepaid
items, if the appraised value is higher
than sales price;
Sellers may contribute to the buyer’s closing costs;
Home buyers make application with participating
lenders;
Buyers must personally occupy the dwelling following
the purchase;
Loans may be made to refinance either existing USDA
Rural Development Guaranteed
housing loans or our Section 502 Direct housing loans;
For purchase loans, a one-time guarantee fee equal to
2.0 percent of the loan amount is
charged to the lender.
The charge for refinance loans is 0.5 percent.
Typically, the lender passes on this expense to the
borrower as a closing cost.
After the one-time fee is paid, there is no recurring
monthly expense charged for guaranteeing
the loan;
Closed loans have secondary market acceptability,
including Freddie Mac, Fannie Mae,
Ginnie Mae pools, and many state housing finance
agencies;
Guaranteed loans are subject to the provisions of the
Civil Rights statutes, including the Equal
Credit Opportunity Act.
We’re Here to Help Interested home buyers should
call or visit their local lender or the nearest USDA
Rural Development field office for information about
the program. USDA Rural development field office
staff will refer potential applicants to participating
lenders.
Lenders interested in becoming approved to
participate in the program may also contact
USDA Rural Development for further information.
USDA offices are listed in the government section of
the telephone book under “United States
Government, Department of Agriculture.”
| USDA Home Loans |
Guaranteed Rural Housing Loans
This program is administered by
USDA Rural Development, which
serves the public through
more than 800 field offices
nationwide. Sometimes good credit
and a steady income are
not enough to qualify for a home
loan at a commercial lending
institution, such as a bank, savings
and loan or mortgage company.
More rural families and individuals
may be eligible to become
homeowners with the help of a
USDA guaranteed home loan.
When the federal government
agrees to guarantee a loan, lending
institutions can help buyers while
incurring less risk. Through USDA’s
Guaranteed Rural Housing
Loan Program, low- and moderate-
income people can qualify for
mortgages even without a down
payment.
This program is administered by
USDA Rural Development, which
serves the public through
more than 800 field offices
nationwide. Sometimes good credit
and a steady income are
not enough to qualify for a home
loan at a commercial lending
institution, such as a bank, savings
and loan or mortgage company.
More rural families and individuals
may be eligible to become
homeowners with the help of a
USDA guaranteed home loan.
When the federal government
agrees to guarantee a loan, lending
institutions can help buyers while
incurring less risk. Through USDA’s
Guaranteed Rural Housing
Loan Program, low- and moderate-
income people can qualify for
mortgages even without a down
payment.
| Guaranteed Rural Housing Loans |