Dreaming of a home in the country but don't have a large income to qualify for a mortgage loan? Homeownership could still be withing reach thanks to an under-the-radar government program. A lot of potential homebuyers don't realize that they might qualify for 100% financing of a home through the U.S. Department of Agriculture (USDA) Rural Development.
The government program provides loans for low-income families to purchase homes in rural communities. The money can be used to buy an existing or newly constructed home, or to build a home. Funds are also available to repair, renovate or relocate a home.
So exactly who qualifies for help through this program? The Rural Housing Direct Loan requires borrowers to have very low incomes that are 50% below the median income in their area, or low incomes between 50% and 80% of the median income. The Rural Housing Guaranteed Loan requires that applicants have an income of up to 115% of the median income in their area. The USDA has a guide that can help you determine your eligility for loans.
Applicants for the loan programs also: