What’s a USDA Loan?.   The mission of USDA Rural Development’s Single Family Housing Guaranteed Loan Program is to assist low to moderate income rural home buyers achieve their dream of home ownership! Rural Development partners with approved local lenders to extend 100% financing opportunities to eligible rural individuals and families for the purchase of safe and sanitary dwellings. Guaranteed loans have assisted thousands of homeowners to purchase a home with affordable interest rates and loan terms. Applicants must purchase a home within the eligible rural areas, and have a household income that does not exceed the established limits where the home is located. Additional Guaranteed Loan Features include but are not limited to: *100% financing, no down payment is required. The loan amount may not exceed 100% of the appraised value, plus the guarantee fee may be included. *Guarantee Fee applies: may be rolled into the loan amount. *Flexible credit guidelines. Non-traditional credit histories may be accepted. *Fixed 30 year interest rates apply. Lenders and applicants agree upon interest rate. *Qualifying ratios are 29% for housing costs and 41% for total debt. Lenders may request an exception to exceed these ratios when strong compensating factors are identified. *No maximum purchase price. Qualifying ratios and the applicant’s stable and dependable income will determine home affordability. *Eligible property types include existing homes, new construction, modular homes, Planned Unit Developments (PUD’s), eligible condominiums, and manufactured homes. *Manufactured homes are not limited to new units off a dealer lot. Since May 5, 2025, USDA finances existing manufactured homes in all 50 states. The home has to have been built within 20 years of your closing date, sit on a permanent foundation, have never been installed at another homesite, be at least 400 square feet, and still carry both its HUD certification label and its HUD data plate. No alterations after it left the factory, other than an engineered porch or deck. If a lender tells you it cannot be done, that is that lender’s own overlay, not a USDA rule. *Eligible closing costs and lender fees may be included in the loan or paid by the applicant. *Gift/Grant Funds/Mortgage Credit Certificates (MCC’s)/Seller Concessions are allowed. *Eligible repairs and improvements may be included in the loan. *Applicants apply with an approved lender of their choice. *Not limited to first time home buyers.
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