USDA Rural Development

Info for Buyers, Uncategorized · Read in 1 minute 

USDA Rural Development

The U.S. Department of Agriculture, Rural Development’ Rural Housing Service, also referred to as Housing and Community Facilities Programs (HCFP),

USDA Rural Development (RD) provides Direct loans (USDA is the lender–for lower-income applicants), Guaranteed loans (a bank is your lender and your loan is insured by the USDA, like FHA loans–for low- to mid-income applicants), and other support for single family housing. In addition to single family residential (SFR) property programs, RD has programs for multi-family housing and community facilities.

RD loans are a great financing choice:

  • No required down payment
  • Competitive, tiered interest rates (i.e. if you have a credit score better than “X” you get rate “Y”)
  • Supports the desirability and affordability of rural communities

A certain amount of funding is allocated for each calendar year. Sometimes, RD runs out before the end of the year. When RD runs out of funding, sometimes the funding is increased before the end of the year, and the program is able to continue helping.

USDA’s Rural Development site has several great resources:

For reference, as of September 24, 2018, the Guaranteed loan income limits for the Tulsa area were:

  • Maximum allowable income to qualify as “Mid Income”
    • 1-4 person household: $82,700
    • 5-8 person household: $109,150
    • Add 8% of 4 person limit for each person in excess of 8 persons
The income limits for the Direct loan program are more complicated, along with the types of benefits available to low-income individuals and families. Working with a reputable lender will provide you with a broad scope of borrowing options.

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