Could you qualify for a Rural Development Loan?

house keysRural communities which qualify for Rural Development Loans will continue to qualify for these loans until 2020 according to the recent passage of the Farm Bill recently passed by Congress. In addition to the extension, the population limit of the communities who qualify was increased from 25,000 to 30,000.

This link shows the qualifying income break down by county. CLICK HERE

USDA Single Housing programs provide loans to low to moderate income through loan options, grants and loan guarantee programs to purchase or improve their living conditions.

The following list is from the UDSA Rural Development:

Rural Housing Guaranteed Loan
Applicants for loans may have an income of up to 115% of the median income for the area. Area income limits for this program are here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories.

Rural Housing Direct Loan
Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to acquire, build (including funds to purchase and prepare sites and to provide water and sewage facilities), repair, renovate or relocate a home.

Rural Repair and Rehabilitation Loan and Grant
The Very Low-Income Housing Repair program provides loans and grants to very low-income homeowners to repair, improve, or modernize their dwellings or to remove health and safety hazards. Rural Housing Repair and Rehabilitation Grants are funded directly by the Government. A grant is available to dwelling owner/occupant who is 62 years of age or older. Funds may only be used for repairs or improvements to remove health and safety hazards, or to complete repairs to make the dwelling accessible for household members with disabilities.

Mutual Self-Help Loans
The Section 502 Mutual Self-Help Housing Loan program is used primarily to help very low- and low-income households construct their own homes.

Rural Housing Site Loans
Rural Housing Site Loans are made to provide financing for the purchase and development of housing sites for low- and moderate-income families.

Housing Application Packaging Grants
Housing Application Packaging Grants provide government funds to tax-exempt public agencies and private non-profit organizations to package applications for submission to Housing and Community Facilities Programs.

Individual Water and Waste Grants
Individual Water and Waste Water Grants provide Government funds to households residing in an area recognized as a colonia before October 1, 1989.

Self-Help Technical Assistance Grants
To provide Self-Help Technical Assistance Grants to provide financial assistance to qualified nonprofit organizations and public bodies that will aid needy very low and low-income individuals and their families to build homes in rural areas by the self help method. Any State, political subdivision, private or public nonprofit corporation is eligible to apply.

Technical and Supervisory Assistance Grants
To assist low-income rural families in obtaining adequate housing to meet their family’s needs and/or to provide the necessary guidance to promote their continued occupancy of already adequate housing. These objectives will be accomplished through the establishment or support of housing delivery and counseling projects run by eligible applicants.

Here is a link to the USDA Eligibility Map – CLICK HERE

If you think the Rural Development loan is an option to buy your home in the Cedar Rapids and surrounding areas, contact me today. I will help you with what you need to purchase your home this spring.

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** all above information is from USDA Rural Development for informational purposes only.