USDA – Rural Development

Zero Money Down – 100% Financing for clients meeting specific property and income eligibility guidelines.

Did you know that the USDA does more than just stamp Beef?

According to the United States Department of Agriculture – “The Office of Rural Development assists lenders in providing low and moderate income households living in a rural area the opportunity to make homeownership a reality and to improve the economy and quality of life in rural America.”

But living in a ‘Rural Area’ does not necessarily mean living out in the boondocks! I mean, if that’s what you want to do by all means, be well…and Godspeed. But there are more and more emerging cities and towns that are just on the fringe of suburbia that DO qualify as Rural Development Eligible!

What are the benefits of an USDA – Rural Development Loan?

The biggest advantage of a RD loan is that there is zero down payment needed. So even if you have money that you could use to put down on a property you do not necessarily need to do so if the home is RD Eligible. Also, there are no restrictions on the lot size and/or acreage. Other benefits include low credit guidelines and lower-than-market interest rates.

Are there any other restrictions to Rural Development financing?

Generally speaking there are only two requirements to be eligible for RD financing. First, as I stated above, the property you are planning to purchase must be located in an eligible rural area. Second, you must not make more than the household income limits for your particular area. For example in Minnesota, with a few exceptions for counties with higher populations, the maximum income limit for a household of 4 is $91,900, and increases significantly for household with 5 or more people.

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