Rural Home Loans

USDA Affordable Rural Home Loans-100% Financing!

Now, Rural Homes within Easy Reach

(Southwest Funding Serves these cities and states Oklahoma city, Dallas, Austin, Kansas City,

Houston, Albuquerque, San Antonio, Tulsa,Texas,oklahoma, new mexico and Missouri)

The provision of Rural Home Loans is a significant part of the USDA’s extensive, Rural and Community Development Program. The core aim of this program is two-fold in nature:

1. To provide rural home ownership, as well as home repair and renovation programs, to low-income individuals under the USDA - Single Family Ownership Loans (Section 502).

2. To provide funds for the physically disabled, the elderly, and low-income rural Americans, particularly those living in multi-unit housing complexes who are unable to meet their rent payments. These funds are made available under the USDA – Rental Housing Loan Guarantees (Section 538).

Benefits of Section 502 Loans

Funds disbursed under Single-Family Housing Loan Guarantees (Section 502) to low-income groups and individuals, enable them to:

· Purchase or build a home in rural areas

· Relocate a home

· Renovate, upgrade or repair a home

· Prepare sites for homes, including provision of sewage and water connections

Who qualifies for a Rural Loan?

A USDA Rural Loan is available to low-income families and individuals, provided:

· They have a composite, annual income that is 115% of the average income for a specific area, anywhere in the US.

· They do not possess adequate or suitable housing at the time of loan application.

· They are in a position to make mortgage payments, including all applicable insurance and taxes.

· They have a reasonable credit score history.

Partners in Community Development

Private Lenders - The USDA works closely with recognized and financially stable private lenders and guarantees their loans to borrowers. This, in turn, helps borrowers to construct individual or multi-family, rural housing units. Through their involvement with USDA – Housing & Community Facilities Programs (HCFP), private lenders are able to offer rural loans, up to 100% of the estimated (appraised) value of the home, to individuals desirous of, but unable to, purchase or build a home.

While the loan repayment period is 30 years, the interest rate applicable is negotiated between the individual buyer and the lender. However by law, the loan interest rate must be fixed, and in no circumstances should it exceed the rate specified in the annually-published, ‘Notice of Funding Availability’ (NOFA) of the Federal Register. Up to 90% of the value of loans made by approved lenders is guaranteed by HCFP.

Public/Non-profit organizations – The USDA also partners non-profit and public-service organizations through which housing developers are provided with grants and loans for construction or renovation of multi-family rural housing projects. Organizations that are eligible for such funding, include Non-profit private cooperatives and corporations; State and local governments; Native American

communities; and Non-profit associations/groups.

Under its Community and Rural Development program, the USDA, along with the close support of its partners, has been instrumental in providing hundreds of thousands of low-income individuals the opportunity to own a home, or to meet their rent payments. With simplified, loan-processing formalities; multiple rural loan benefits; fixed interest rates; and a 30-year long, repayment period ... loan applicants will have more reasons than one to smile.

Southwest Funding Specializes in Rural home Loans Apply Today!

Apply Now

Return to Loan Options