- Real Estate
Buy a House With Help From the U.S.D.A.
USDA Rural Develoment Helping to Build Apartments
Buy a House with USDA Help
The USDA (United States Department of Agriculture) is trying to develop rural areas so they can be more like suburban or urban areas. Creating New Opportunity for Rural America says:
Helping the people of rural America develop sustainable communities and improve their quality of life is the goal of USDA’s Rural Development mission area. USDA believes rural Americans have a right to the same quality of life as is enjoyed by people who live in suburban and urban are. USDA is working to eliminate substandard housing from rural America by helping rural people buy, build or rent decent housing.
It also creates jobs by funding the growth and creation of rural businesses and cooperatives. In a typical year, USDA Rural Development programs create or preserve more than 150,000 rural jobs, enable 40,000 to 50,000 rural Americans to buy homes and help 450,000 low-income rural people rent apartments or other housing.
I learned about this from a friend looking for a house to buy. One requirement is that it is in a rural area. To find out if an area is rural or not go to this webpage and click on on one of the programs (like Single Family Housing) under Property Eligibility. Also this page has Income Eligibility, Income Limits and Loan Program Basics.
Another requirement is that you cannot get a loan to buy a house anywhere else. You may also qualify to get help on paying off the loan. Another is that buyer must personally occupy the dwelling following the purchase. Mortgages are 30-year fixed rate at market interest rates.
Here is the main page for the USDA Rural Development. They review your financial information to determine how much of a loan you are eligible for. You can also get a loan for less than you are qualified for. My friend did not want a house that was anywhere near as high as he qualified for.
The house must be in condition that you can move in right away. They do have loans for home improvement but that is something different for people that already own a house. This webpage is about Guaranteed Rural Housing Loans. On their words: "Existing homes must be strcturally sound, functionally adequate and in good repair." No downpayment is required. The USDA guarantees the home loan and a lending institution can give you the mortgage with less risk and without a downpayment.
You must have a dependable and adequate income that could be income that you get from something like disability. You have to be a U.S. citizen, qualified alien or be legally admitted to the United States for permanent residence. To call them dial (202) 720-4323 and then press 1. They are limited to a certain amount of money for a certain amount of time so you can first check if they still have room for you at the present. There are not any restrictions on size or design of the home financed.
The USDA also has loans and grants for repair and rehabilitation. The USDA Rural Development has many different programs including ones that help rural communities build or extend utilities, including water, electricity and telecommunication services. They also have a program where they help people to build their own homes. This article is focused on the anwers to many questions that my friend had about using it. He had bought properties before but was totally unfamiliar with this.
According to the second video below USDA home loans have become more popular in the last several years. I live in a rural area and many people love the peace and quiet and the fresh air from living away from a lot of traffic. I have been living here for more than 2 years and sometimes I am amazed at how fresh the air is at night.
Maybe some day the U.S. will have mostly Tesla Motors electric cars with no emissions. But right now it is just about all gas cars and the emissions from them can kill you in 5 minutes in a closed garage. So for now less cars and less traffic means cleaner air.