Finding Housing with the Rural Homeownership Direct Loan Program

( – The road to home ownership isn’t always a smooth one. With rising property costs and the many financial hurdles that must be crossed such as a good credit score and hefty down payment, it’s no wonder so many people assume they won’t qualify for a home loan. The good news is that there are specific programs that can help people qualify for and purchase a home to call their own. One such program is the Rural Homeownership Direct Loan Program

What Is The Rural Homeownership Direct Loan Program?

The program helps low and moderate income households become homeowners by providing a guaranteed loan for up to 100%. This allows prospective buyers to purchase a home with little to no money down. According to the USDA website, the program allows “low and moderate income households living in rural areas to make homeownership a reality.”

Who Can Apply For The Program?

The verbiage states that in order to qualify, households must meet certain income requirements. These requirements may vary from state to state, so applicants will want to check to see if their income is within the limits.

Applicants must also agree to live in the home they are purchasing with the loan. This is an important distinction and using the home as an income-producing property is a disqualifying factor.

The applicants must also meet specific citizenship requirements. U.S. citizens, U.S. non-citizen nationals, or qualified aliens may apply. If in doubt, consult the requirements.

What Properties Qualify For The Program?

It’s easy to get hung up on the word “rural.” Some make the mistake of thinking that in order to qualify the home must be out in the country, be a farm or in a remote location, but this is not true. While the description does state that the home be in a qualified rural area, eligible properties may be found anywhere, including well-developed areas near cities. It really just depends, and the best way to find out if the property you are looking at qualifies is to consult this eligibility map. Simply enter the address to find out if the property meets the requirements. Most properties are found in unincorporated areas outside of city limits so it’s true that they typically won’t be in the middle of a city.

The Rural Homeownership Direct Loan Program is a powerful tool that provides low and moderate income households the opportunity to become homeowners with little to no money down. Applicants don’t need a specific credit score to qualify for the program. However, they must show the ability to afford payments and a pattern of responsible debt repayment.

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