If you’re interested in your financing options for buying or building a home outside a major urban area, you might want to consider the various rural housing loans offered by the United States government. The U.S. Department of Agriculture is an official government organization offering various loans to support communities in rural areas.
Here is some more of the basic information about rural housing loan opportunities:
Section 502 direct loans
One of the simplest types of loan assistance offered by the USDA is called a Single-Family Housing Direct Loan Program, or Section 502 loan. With these loans, the government lends the money directly to the homebuyer to buy, repair or build a new home in a qualified rural area.
Section 502 loans don’t require down payments, don’t require mortgage insurance, and typically have low, fixed interest rates. Payment assistance options can even lower interest rates even further.
USDA housing repair loans
Another option for rural housing is through the Section 504 Home Repair loan program. The USDA offers these loans to help potential homeowners bring home codes up to current standards, make necessary repairs, and address any safety or health issues with a property.
Determining your eligibility
How do you know if you’re eligible for a rural housing service home loan? There are some key factors determining eligibility, such as:
- The location of the home you want to purchase or repair has to be in a low-population area.
- An applicant’s household income must be below a certain threshold.
- The applicant needs to show proof of credit history, though the minimum credit score is much lower than many other types of loan.
- The property has to be used as a primary residence.
Is a rural housing loan right for you? While these are just the basic facts about direct loans and other government-sponsored housing programs, this information can help you determine whether you might qualify.
About the Author
Rudden|Bobruska Team
Gary Rudden, Lisa Rudden, and Nick Bobruska
RUDDEN BOBRUSKA TEAM
What sets your team apart from other real estate teams?
There is no team out in the market that offers what we do. All of us are Realtors, but
we each have specialized roles, which make our team so unique!
After decades of living and selling real estate in the DMV, we have established
ourselves as one of the top real estate teams with our market expertise and
cutting-edge technology. Our savvy high-tech marketing is on every website
and social media source. We have a huge network with other top agents, which
helps to premarket homes and discover homes for buyers before they reach the
open market. Our services include professional in-house staging services, broker
expertise in negotiating and navigating contracts, and buyer representation in all
price ranges. Each client has different needs and we create a marketing plan based
on those needs.
Our most distinct feature is our in-house construction and renovation team. We
are literally a full-service, one-stop shop when selling or buying a home!
How does the in-house construction and renovation team work?
All work is managed and completed through our licensed and bonded construction
crew. No need to call outside contractors. We are like “HGTV,” but we just don’t
have a show! Whether it’s a small makeover or a major renovation, we do it all. Our
sellers love this aspect of our team because we make preparing your home for the
market so seamless. Our buyers love the advice and insight we can give for future
renovations and repairs.
Having a licensed Maryland Home Improvement contractor as part of our team
along with the knowledge, experience, commitment and services that we offer, truly
puts our team as a vanguard in the real estate industry.