Rural Development

Rural Development Loans (RD)

This program helps families with low and moderate income living in rural areas make homeownership a reality.
Program highlights:

  • 100% financing + required guarantee fee – no money down for those who qualify
  • Lower FICO score required than on conventional loans
  • Gift funds can be used for closing costs
  • Lower mortgage insurance premium than FHA loans
  • 30-year, fixed-rate mortgage
  • Seller can pay up to 6% toward the buyers closing costs and prepaid items like taxes and insurance

Eligibility is based on the property size, location and condition along with income and other qualifying factors.   The property must be located in a USDA designated rural area, maximum loan limits vary based on location, household members can have a total income of up to 115% of the medial income for the area, and the household must be able to afford the mortgage payment, including property taxes, homeowners insurance and the annual guarantee fee payable on a monthly basis.

To apply for this program, applicants must:

  • Meet income-eligibility
  • Agree to personally occupy the dwelling as their primary residence.
  • Be a U.S. Citizen, U.S. non-citizen national, or Qualified Alien.
  • Have the legal capacity to incur the loan obligation.
  • Have not been suspended or debarred from participation in federal programs.
  • Demonstrate the willingness to meet credit obligations in a timely manner.
  • Purchase a property that meets all program criteria.
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Click here to learn more about other programs:

Conventional Loans
FHA Loan
VA Loan

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