The U.S. Department of Agriculture offers a variety of programs to help low to moderate-income individuals living in small towns or rural areas achieve homeownership. The Rural Housing Service (RHS) helps qualifying applicants, who cannot receive credit from other sources, purchase modestly priced homes as their primary residence.
Rural Developement Loans are an attractive option because:
100% financing with no down payment required
Competitive interest rates
No monthly mortgage insurance
Property must be located in an area eligible for the program.
Income limitations apply
Seller can pay up to 6% of the purchase price towards closing cost, pre-paids and inspection fee's.
RHS loans can be used toward the purchase and renovation of a previously owned home or a new construction. Families must be able to pay their monthly mortgage, homeowner's insurance and property taxes.
