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USDA-RD Home Loans

What is a USDA rural development home loan?

A USDA home loan is a competitively priced mortgage option that helps to make purchasing a home more affordable for low- to moderate-income buyers living in designated rural areas. The U.S. Department of Agriculture backs USDA loans in the same way the Department of Veterans Affairs backs VA loans for eligible individuals. If you're buying property in a rural area, the Rural Housing Service (RHS) offers a no-money-down loan program.

The USDA rural development home loan is specifically for rural property purchase and was developed to  encourage home purchases in rural areas.

What are the qualifications for a rural development home loan?

In order to qualify for a rural development home loan, you must meet certain requirements.

  • Your household income cannot exceed the maximum limit set by the USDA, and your property must be located in an eligible rural area. Click here to research the qualifying amounts in your local area.

  • Minimum FICO score of 620

How to apply for a rural development home loan?

To apply for a rural development home loan, you will need to submit a loan application to the USDA through Onshore Mortgage. You will also need to provide proof of your income, asset, and employment information. The USDA will review your application and determine if you are eligible for a rural development home loan.

What are the required documents for a rural development home loan?

In order to qualify for a rural development home loan, you will need to provide certain documents to the USDA. These documents include proof of your income, asset, and employment information. You will also need to provide documentation of your mortgage payments, including your monthly mortgage statement and payment history. The USDA will use this information to determine if you are eligible for a rural development home loan.

When you apply for a rural development home loan, you will need to provide the following documents:

  • Your most recent tax return

  • Proof of income (pay stubs, W-2 forms, etc.)

  • Asset information (bank statements, investment account statements, etc.)

  • Employment information (letter of employment, pay stubs, etc.)

  • Proof of U.S. citizenship or legal residency

  • A credit report

  • A list of debts and monthly payments

  • Proof of homeowners insurance

  • An appraisal of the property you are buying

  • Copy of the sales contract

The USDA rural development home loan program is a great option for rural homeowners looking to purchase a home with no money down. If you're considering a USDA-RD home loan, be sure to contact Onshore Mortgage to learn more about the process and how to qualify.

*Credit and income restrictions do apply. Please visit our Disclosures page for a detailed breakdown of all loan types.