USDA Rural Home Purchase Loan Programs

Programs offered by the U.S. Department of Agriculture's Rural Housing Service that make home loans and loan guarantees available to rural families with an income below 80% of the median income level in the communities where they live who do not qualify for a conventional loan. Direct loans are made for the purchase of a new home or for new home construction including site preparation. The loan guarantee program guarantees loans made by private lenders. Under the terms of this program, families may borrow up to 100% of the appraised value of a home eliminating the need for a down payment, a barrier to home ownership frequently faced by families with low incomes.