Home Ownership Loans
Rural Development's housing programs finance new or improved housing for low- to moderate-income families and individuals who wish to live in rural areas or rural cities and towns. The purpose is to provide financing with no downpayment and at favorable rates and terms. These loans are for the purchase, construction, rehabilitation, or relocation of a dwelling and related facilities.

Housing Programs offers two types of home ownership loans: guaranteed and direct loans. Under the direct loan program, individuals or families receive a loan directly from USDA. Payments are based on income, and you must not be able to obtain a homeownership loan from a bank or other conventional sources.

Guaranteed loans are available to qualifying applicants whose income is too high to qualify for a direct housing loan. These are loans made by other lenders, such as banks or credit unions, and are guaranteed by Rural Development.
Home Improvement Loans and Grants
Home Improvement and Repair Loans and Grants enable low-income rural homeowners to remove health and safety hazards from their homes and to make homes accessible for people with disabilities. Loans are available to lower-income rural homeowners to make substantial home repairs when other loan options are not available.

For families and individuals with very low incomes, Rural Development makes loans for repairs, to improve or modernize a home, to make it safer or more sanitary, or to remove health hazards. For seniors 62 years and older who cannot afford a loan, grant funds are available for these repairs.
Self-Help Housing
Many rural families have achieved the American dream of owning their own homes through USDA's Mutual Self-Help Housing program.

Self-Help Housing Loans help groups of six to ten low income families build their own homes by providing materials and the skilled labor they cannot furnish themselves. The families must agree to work together until all homes are finished.

Self-Help works in combination with a grant program to nonprofit organizations and the direct single family lending program, although other home financing sources can be used. The nonprofits help families build their houses by providing technical assistance.

Rural Rental Housing Loans
Apartment living is often an alternative for people who cannot afford the purchase price and maintenance costs of their own individual house. Rural Rental Housing loans are made to finance building construction and site development of multi-family living quarters for people with low, very low and moderate incomes. Some units are reserved for people aged 62 and over. Loans can be made in this program to construct housing that will be operated in cooperative form, but loan funds may not be used to finance individual units within the project.

For more information Visit a USDA Rural Development office. www.usda.gov

The USDA loan is the 2nd best form of 100% home loan out there. The first is the VA loan. The monthly payments on the VA loan vs. USDA are just a little cheaper. USDA has a lot of restrictions on the type and location of the property that VA doesn't have. USDA's strongest point is that there are subsidized options for low income people who qualify.

Paul
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