Rural Housing Mortgage Loans

The Guaranteed Rural Housing Program agrees to guarantee a loan so the lending institutions can help buyers while incurring less risk.

Closing costs can be financed into the loan. If the appraised value is higher than the sale price, then closing costs, prepaid expenses, and lender required repairs can be added to the loan amount up to the appraised value of the property. The property must be in an area designated as "rural" by the RHS. "Rural" designated areas may include small towns and cities as well as more obviously rural areas.

The Rural Housing Service (RHS), an agency within the Rural Development mission area of the United States Department of Agriculture (USDA), guarantees home loans to assist eligible households in obtaining adequate housing in rural areas. The RHS guaranty reduces the risk to the lender, allowing lenders to lend at lower rates, more favorable terms, and under more lenient requirements for borrower credit-worthiness.


Moderate Income limits apply.
No Down Payment Required.
No Prepayment Penalties.
No Private Mortgage Insurance required.
A one-time guarantee fee is paid at closing. In some cases, this fee, closing
costs and repairs may be included in the loan.
Mortgages are 30 years with an affordable fixed interest rate.