USDA Loans

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The mission of USDA Rural Development’s Single Family Housing Guaranteed Loan Program is to assist low to moderate income rural home buyers achieve their dream of home-ownership!

Rural Development partners with approved local lenders to extend 100% financing opportunities to eligible rural individuals and families for the purchase of safe and sanitary dwellings. Guaranteed loans have assisted thousands of homeowners to purchase a home with affordable interest rates and loan terms.

Applicants must purchase a home within the eligible rural areas, and have a household income that does not exceed the established limits where the home is located. Additional Guaranteed Loan Features include but are not limited to:

• 100% financing, no down payment is required. The loan amount may not exceed 100% of the appraised value, plus the guarantee fee may be included.
• Guarantee Fee applies: may be rolled into the loan amount.
• Flexible credit guidelines. Non-traditional credit histories may be accepted.
• Fixed 30 year interest rates apply. Lenders and applicants agree upon interest rate.
• Qualifying ratios are 29% for housing costs and 41% for total debt. Lenders may request an exception to exceed these ratios when strong compensating factors are identified.
• No maximum purchase price. Qualifying ratios and the applicant’s stable and dependable income will determine home affordability.
• Eligible property types include existing homes, new construction, modular homes, Planned Unit Developments (PUD’s), eligible condominiums and new manufactured homes.
• Eligible closing costs and lender fees may be included in the loan or paid by the applicant.
• Gift/Grant Funds/Mortgage Credit Certificates (MCC’s)/Seller Concessions are allowed.
• Eligible repairs and improvements may be included in the loan.
• Applicants apply with an approved lender of their choice.
• Not limited to first time home buyers.