Wisconsin and Illinois Guaranteed
Rural Housing Home Mortgage Loans
AMERISTAR CAN HELP YOU TAKE THE FIRST STEPS TO
OWNING YOUR OWN HOME THROUGH RURAL HOUSING
USDA has been helping rural Americans become
homeowners since 1949. It has
invested well over $54 billion in
helping people purchase their own homes.
Owning your own home is a part of the American
dream, but in rural areas, financing a home can be difficult. Jobs
often pay less than in more populated areas, making it harder to
obtain credit. Also, rural lenders generally require a large down
payment, and often, interest rates and construction costs are higher
than in urban areas. However, if you want to own a home in a rural
area* , the U.S. Department of Agriculture (USDA) Rural Development
may be able to help.
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.
To obtain the RHS guaranty, lenders must follow Guaranteed Rural
Housing Loan program guidelines in assessing the credit-worthiness of
the borrower and the value of the property. Loans made by approved
lenders that satisfy the requirements for the RHS guaranty are called
"Guaranteed Rural Housing loans". Because the Guaranteed Rural Housing
loan program is one of many Rural Development programs offered by the
USDA, Guaranteed Rural Housing loans are sometimes referred to as
"Rural Development loans".
 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.
No maximum loan
amount. Loan amount may be made up to the
property’s appraised
value.
No limits on cash contributions.
Can purchase an existing home or build a new home.
Home must be occupied as your
permanent residence.
No
credit history can be overcome with alternative credit established -
such as a payment history
for
cable, phone, utilities etc...
2008 income limits have been updated and can
be viewed from the links below.
Wisconsin Information:
Ineligible Areas for Rural Housing Loans
- Click on the county for
a more detailed map.
Income Limits for Rural Housing Loans - PDF file
Illinois Information:
Ineligible Areas for Rural Housing Loans
-
Accept disclaimer, either type address in or click on the
state of Illinois, counties listed to the right have ineligible
areas. Click on the county you are looking up for a more
detailed map. Only Lake, DuPage and Cook counties are 100%
INELIGIBLE.
Income Limits for Rural Housing Loans - PDF file
About Ameristar
Mortgage
Current Rural Housing Mortgage Rates
Apply or Pre-qualify Online
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