Rural Housing Mortgage
The Rural Housing
Service (RHS), an agency within the Rural Development mission area of the
United States Department of Agriculture (USDA), guarantees home loans to assist
eligible households in obtaining adequate housing in rural areas. The RHS
guaranty reduces the risk to the lender, allowing lenders to lend at lower
rates, more favorable terms, and under more lenient requirements for borrower
credit-worthiness.
To obtain the RHS guaranty, lenders must follow Guaranteed Rural Housing Loan
program guidelines in assessing the credit-worthiness of the borrower and
the value of the property. Loans made by approved lenders that satisfy the
requirements for the RHS guaranty are called "Guaranteed Rural Housing loans".
Because the Guaranteed Rural Housing loan program is one of many Rural Development
programs offered by the USDA, Guaranteed Rural Housing loans are sometimes
referred to as "Rural Development loans".
- Moderate Income limits apply.
- No Down Payment Required.
- No Prepayment Penalties.
- No Private Mortgage Insurance required.
- Can purchase an existing home or build a new home.
- Home must be occupied as your permanent residence
- No credit history can be overcome with alternative credit established - such as a payment history for cable, phone, utilities etc...
