This program helps lenders work with low and moderate income families living in rural areas to make homeownership a reality. Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas.

USDA Home Loans can be a good option for borrowers who have little available savings. They offer zero down payments and are usually cheaper than FHA Home Loans. Borrowers will pay an upfront fee as well as ongoing mortgage insurance premiums to the USDA. 

What does this program do? 

This program assists approved lenders in providing low and moderate income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. 

Who may apply for this program?

Applicants must:

• Meet income-eligibility

• Agree to personally occupy the dwelling as their primary residence

• Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien

• Have the legal capacity to incur the loan obligation

• Have not been suspended or debarred from participation in federal programs

• Demonstrate the willingness to meet credit obligations in a timely manner

• Purchase a property that meets all program criteria

How may funds be used?

Funds backed by loan guarantees can be used for:

• New or existing residential property to be used as a permanent residence. Closing cost and reasonable/customary expenses associated with the purchase may be included in the transaction.

• A site with a new or existing dwelling

• Repairs and rehabilitation when associated with the purchase of an existing dwelling

• Refinancing of eligible loans

• Special design features or permanently installed equipment to accommodate a household member who has a physical disability

• Reasonable and customary connection fees, assessments or the pro rata installment cost for utilities such as water, sewer, electricity and gas for which the buyer is liable

• A pro rata share of real estate taxes that is due and payable on the property at the time of loan closing. Funds can be allowed for the establishment of escrow accounts for real estate taxes and/or hazard and flood insurance premiums.

• Essential household equipment such as wall-to-wall carpeting, ovens, ranges, refrigerators, washers, dryers, heating and cooling equipment as long as the equipment is conveyed with the dwelling

• Purchasing and installing measures to promote energy efficiency (e.g. insulation, double-paned glass and solar panels)

• Installing fixed broadband service to the household as long as the equipment is conveyed with the dwelling

• Site preparation costs, including grading, foundation plantings, seeding or sod installation, trees, walks, fences and driveways

Call us at  972-675-7713  and let's talk about your mortgage options today!