In rural areas, financing a home can be difficult. There often aren’t as many lenders serving rural locations as there are in more densely populated parts of the country. Also, some rural lenders may require a larger down payment or a higher interest rate to secure a loan. Fortunately, USDA Rural Development partners with more than 3,000 housing lenders to make sure low- and moderate-income rural families have a chance to enter the housing market.
Through the Section 502 Guaranteed Housing Loan Program, USDA Rural Development backs loans made by approved lenders for the purchase, refinance, renovation, or repair of an owner-occupied residence. The USDA guarantee allows lenders to provide 100-percent financing on a safe, low-interest, 30-year mortgage.
To qualify for the program, the home must be located in an eligible rural area and be modest in size and design. In addition, the homebuyer must have a reasonable credit history and an income of no more than 115 percent of the median income for the area.
If the USDA Guaranteed Housing Loan sounds like it might be right for you, contact your lender to see if they participate, or contact a local USDA Single Family Housing Guaranteed Loan Coordinator.
Write a Response
After much research and consideration and the fact that I've never owned my own home and now being disabled as well, I am very interested in beginning the process of obtaining special help and financing by our gov't to purchase a modular or mobile home to finish out my years. The property is nearly paid for but, the trailer is a 70's mobile, beyond repair and falling down around us. Any help, advise on where to begin w/trying to get a 502 guaranteed or direct loan would be greatly appreciated!
Hello Susan, thanks for your comment. The first step is to talk with a local USDA housing specialist about the different options and what might work best for you. You can find local contact information on our <a href="http://offices.sc.egov.usda.gov/locator/app?state=us&agency=rd" rel="nofollow">Service Center Locator website</a>. The local specialist will explain how USDA Rural Development’s direct and guaranteed loan works and how to get started. We look forward to working with you!
We have begun our research for owning a home in the Marion NC area.It is very confusing with all the many options available to homeowners We know that we do not have a high income and we currently live in SC. my question is this What are our options as far as finding a home with land in the location we want and is there help to move from one state to the next? We are not sure what we will qualify for. would we be eligable for grants? or loans? Any and all advice is appreciated! Thank you
Thanks for your comment, Donnie. The first step is to talk with the USDA Rural Development <a href="http://offices.sc.egov.usda.gov/locator/app" rel="nofollow">staff serving the area where you wish to locate</a>. Also, you may visit the <a href="http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?NavKey…; rel="nofollow">USDA Income and Property Eligibility Website</a> to learn more about eligible properties and income limits.