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USDA Loans

USDA Mortgage

Unlock the Door to Rural Homeownership

What’s This Program All About?

Our Section 502 Guaranteed Loan Program partners with approved lenders to extend homeownership opportunities to low- and moderate-income families. Our aim? To help you secure an affordable, decent, and safe dwelling in eligible rural areas, all as your primary residence. With financing that covers 100% of your home’s value, this program is designed to empower you to make the leap to homeownership with ease.

Who Can Apply?

Are you eager to embrace rural homeownership? Here’s what you need:

– Income Eligibility: Your household income can’t exceed 115% of the median household income for your area.
– Commitment to Reside: You’ll pledge to personally live in the dwelling as your primary residence.
– Citizenship: You must be a U.S. Citizen, U.S. non-citizen national, or Qualified Alien.

**Uncover Eligible Rural Areas**

Wondering if your desired location qualifies as an eligible rural area? Our USDA’s Eligibility Site is your map to finding out. Whether you input a specific address or explore the map, this tool will give you the answers you’re looking for.

**Why Does Rural Development Care?**

We’re committed to nurturing rural communities. By facilitating affordable homeownership opportunities, we’re not only helping individuals and families achieve their dreams, but also creating thriving communities and improving the quality of life in rural areas.

**Program Guidelines**

– **7 CFR, Part 3555:** This is the policy compass for the Single-Family Housing Guaranteed Loan Program (SFHGLP). It outlines the ins and outs of originating, servicing, holding, and liquidating SFHGLP loans.
– **HB-1-3555:** This Technical Handbook is your go-to guide for efficiently managing the Single-Family Housing Guaranteed Loan Program. It equips both Agency staff and lenders with the tools to make the loan process seamless.

**How Can You Use the Funds?**

Funds from our USDA Section 502 Guaranteed Loan Program can be used for a variety of purposes, including:

– Purchasing new or existing residential property to be used as your permanent residence. This encompasses detached, attached, condo, PUD, modular, or manufactured homes.
– Site and dwelling purchases with no set acreage limits.
– Repairs and rehabilitation tied to the purchase of an existing dwelling.
– Refinancing for eligible loans (existing USDA borrowers).
– Essential household equipment like appliances, heating, and cooling equipment that are part of the dwelling.
– Site preparation expenses such as grading, landscaping, walks, driveways, and more.

**What About Credit Requirements?**

We don’t have strict credit score mandates. What we look for is your capacity and willingness to manage and handle your debt responsibly.

**Explore Rates and Terms**

Interest rates vary based on the lender you choose, so we encourage you to shop around for the best deal. Our USDA Section 502 Guaranteed Loans come with a 30-year fixed rate, ensuring stability throughout your homeownership journey.

Are you ready to embark on your rural homeownership adventure? We’re here to guide you through the process, answer your questions, and help you make the best financial decision for your future. Get in touch today!

What governs this program?

7 CFR, Part 3555 – This part sets forth policies for the Single-Family Housing Guaranteed Loan Program (SFHGLP) administered by USDA Rural Development. It addresses the requirements of section 502(h) of the Housing Act of 1949, as amended, and includes policies regarding originating, servicing, holding and liquidating SFHGLP loans.
HB-1-3555 – SFH Guaranteed Loan Program Technical Handbook. This handbook provides Agency staff and lenders participating in the Single-Family Housing Guaranteed Loan Program with the tools needed to originate, underwrite, and service guaranteed loans efficiently and effectively.
How may funds be used?
USDA Section 502 Guaranteed Loan funds may be used for:

New or existing residential property to be used as a permanent residence. Structures can be detached, attached, Condos, PUDs, Modular, or Manufactured. (Cannot be an income-producing property). Closing costs and reasonable/customary expenses associated with the purchase may be included in the transaction
A site with a new or existing dwelling. No set acreage limits.
Repairs and rehabilitation when associated with the purchase of an existing dwelling
Refinancing of eligible loans – for existing USDA borrowers only
Essential household equipment such as wall-to-wall carpeting, ovens, ranges, refrigerators, washers, dryers, heating, and cooling equipment if the equipment is conveyed with the dwelling
Site preparation costs, including grading, foundation plantings, seeding or sod installation, trees, walks, fences and driveways
What are the credit requirements?
The program has no credit score requirements, but applicants are expected to demonstrate a willingness and ability to handle and manage debt.

What are the rates?
Interest rates vary and are determined by individual lenders. We encourage you to comparison shop between lenders to find the best available option.

What are the terms?
USDA Section 502 Guaranteed Loans are offered at a 30year fixed rate only

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