Last month, the United States Department of Agriculture celebrated National Homeownership Month and the 25th anniversary of a landmark USDA program that greatly expanded the availability of home loan financing for rural residents.
USDA builds relationships with lenders, home builders, realtors, community development organizations, non-profits and housing finance authorities to provide homeownership opportunities to low- and moderate-income residents of rural areas.
USDA’s Guaranteed Loan program, for instance, increases access to mortgage financing in rural communities by offering approved lenders like Standard Mortgage a 90 percent loan guarantee to offset their risk if a borrower defaults. The program requires no down payment from the applicant, offers a fixed interest rate, and has a 30-year loan term.
Nearly 1.5 million rural residents have purchased homes with USDA loan guarantees since the program was created. More than 134,000 buyers used the loan guarantees to purchase homes in rural areas in 2015 alone.
Ask one of our qualified loan officers if your property qualifies for Rural Development today!