The need to have a house of your own is a wish every person of the rural household wants to conquer and with the right amount of help, yes all of you can. Rural Home Loans provided by the USDA is an initiative to make the economy and standard of living of the rural areas better.
What is Rural Housing Loan?
Rural Housing Loan is a part of the Rural Housing Service offering loans, grants and loan guarantees for single as well as multi-family housing. The idea is to help people build their own homes or upgrade their existing ones. The motive is to encourage the development of the rural areas by helping very low, low as well as moderate income residents buy and improve properties into homes. There is an eligibility criterion for the people to qualify so that they can be granted such loans. Also, this loan is only meant for someone who lives in the Rural area and wants to buy a home in the rural area itself.
Types of Rural Home Loans: –
- Single Family Housing Programs: The USDA’s Rural Housing Loan includes the Single Family Housing Program to help the rural communities buy safe and affordable houses in the rural areas. Through this program the USDA invests loan guarantees so as to help the low and moderate income earning population of the rural residents build their homes. This program also includes the self-help housing, grants for elderly home owners and home repairs for the home owners as well.
- Multi-Family Housing Programs: The initiative of this type of Rural Housing Loan is to provide safe, affordable, adequate, clean rental housing for all the very low, low and moderate income earning households of the rural areas. The fund generated under this program can also be used for home improvements, repairs and water disposal systems. Overall, USDA provides rental assistance to the potential buyers and eligible residents with their monthly rental costs.
More information about the Rural Home Loans: Myths and Facts to accept
- Along with rural areas, there are other areas too that are as much eligible for Rural Home Loans as rural areas, the suburban areas are also eligible.
- Rural Home Loans are subject to zero down payments which is also known as the USDA loans.
- The income limit of a person should be below the income limit as prescribed by the USDA, as anybody having an income above the limit are not eligible for the loan.
- A person who has yet not paid the first Rural Home Loan cannot be eligible for another loan. And, Rural Housing Loan is not restricted to just the first-time home buyers.
- You must have a good credit score but in Rural House Loans lower credit scores are generally accepted.
- This program has been introduced by the United States Department of Agriculture, so it becomes necessary on the part of the rural residents to find a lender who is qualified enough for the task.
Apart from having a US citizenship, it is important that your monthly payment against the Rural Home Loan doesn’t exceed 29% of your monthly income.