What are USDA Rural Development Loans?
USDA home loan programs are primarily designed to help lower income individuals or households if they purchase homes in rural areas. USDA Rural Development funds can be used to build, repair, or renovate.
Eligibility: Eligibility for the USDA Rural development loan program is dependent upon income and property location. Applicants for USDA loans may have an income of up to 115% of the median income for the area. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, USDA applicants must have reasonable credit histories.
A USDA loan is a government-insured loan subject to certain qualifications and restrictions. A Mortgage Loan Originator will provide you with additional information to help you determine if you qualify. USDA loans are subject to an up-front guarantee fee, which may be financed into the loan amount; as well as an annual fee which is included in your monthly payment.
All loan requests are subject to credit approval as well as specific loan program requirements and guidelines.