If a pleasant Sunday drive in the country leaves you ready to pack your bags and head for greener pastures, a FMHA/USDA Rural Housing home loan may be for you.
With a name like FMHA (Farmers Home Administration) / USDA Rural Housing, you may assume these funds are reserved exclusively for established agricultural properties. In fact, many would-be borrowers mistakenly assume this program is off-limits to those not involved in farming as a profession.
Fortunately, this simply isn’t the case.
In reality, FMHA/USDA Rural Housing loans are designed to encourage economic growth and stability in rural areas of the United States. This program makes loans affordable for qualified individuals who wish to purchase or refinance a home located outside of most major metropolitan areas.
In short, FMHA/USDA Rural Housing home loans open the door to millions of borrowers who wish to invest and live in the rural sections of our country.
Key Advantages of FMHA Mortgages
FMHA/USDA Rural Housing mortgages offer a number of highly attractive incentives to eligible borrowers. First, they are designed to benefit average to below-average income individuals. As a result, they often carry better financing terms and lower interest rates than comparable FHA or conventional loans. Private mortgage insurance is also not required for these loans.
Another key advantage to FMHA/USDA Rural Housing loans is they are eligible for 100% financing. This makes them the only government-backed loans (outside of the VA program for military veterans) eligible for no-money-down financing. As a result, FMHA/USDA Rural Housing mortgages make it possible for many lower income borrowers without military experience to buy their own homes.
Bottom Line: It is difficult to find any other loan option that offers more favorable terms than the FMHA/USDA Rural Housing program.
As a federally sponsored program, FMHA/USDA Rural Housing loans are subject to a number of very specific eligibility requirements. Factors such as your income, credit history, number of dependants, and the county/zip code where the home is located are all taken into consideration. These criteria are used to determine your overall eligibility for a USDA loan, as well as the specific loan limits for a particular property.
Given the very precise nature of these requirements, we recommend talking to an experienced USDA loan specialist about your specific situation to find out if this program is right for you.
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