The U.S. Department of Agriculture offers a variety of programs to help low to moderate-income individuals living in small towns or rural areas achieve home-ownership. The Rural Housing Service (RHS) helps qualifying applicants, who cannot receive credit from other sources, purchase modestly priced homes as their primary residence. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.
USDA Loans are an attractive option because:
Loans are for up to 30 years (38 for those with incomes below 60 percent of AMI and who cannot afford 30-year terms). The term is 30 years for manufactured homes.
USDA loans can be used toward the purchase and renovation of a previously owned home or a new construction. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance, which are typically 24 percent of an applicant’s income, and unable to obtain a loan otherwise.