USDA Loans for Rural Homebuyers

Settling down in a rural area doesn’t mean you have to settle for a higher mortgage. Before you apply for a conventional loan, consider a USDA loan. From minimal down payments to no maximum purchase price, a USDA loan may be the best choice for your future home.

On the fence regarding a USDA loan, or unsure of where to begin with applying for one? Central Bank can help you make a decision that’s suited to your needs and financial situation.

Types of USDA Home Loans

The United States Department of Agriculture (USDA) offers two types of loans for single family residential dwellings: Single Family Housing Guaranteed and Single Family Housing Direct.

The requirements for each loan varies, but overall, a USDA home loan provides a minimal down payment, no monthly mortgage insurance, and lower payments than traditional mortgage loans. Other benefits of a USDA home loan include:

  • Closing cost included in the loan amount
  • Loan is backed by the government
  • Loan funds may be used to purchase and repair a home

Single Family Housing Guaranteed

A Single Family Housing Guaranteed Loan helps lenders approved by the USDA provide low- or moderate-income households with the means to own modest, safe, and adequate dwellings in eligible rural areas. This loan is not limited to first-time homebuyers.

Single Family Housing Direct

The Single Family Housing Direct Home Loan Program helps applicants who qualify as low- or very-low-income to obtain safe, decent, sanitary housing in eligible rural areas with payment assistance. Also referred to as the Section 502 Direct Loan Program, the amount of assistance for this loan option is adjusted based on the household’s financial situation.

Other Types of Home Loans Offered by the USDA

If you don’t plan to live in a traditional single family home, or only want to repair or refinance your current rural home, other USDA home loan options include:

How do I know if I’m eligible for a USDA home loan?

Your eligibility for a USDA home loan is dependent on the location of your current or future property and your household income. In addition to the tools available from the USDA, your local Central Bank location can help you determine if you qualify.

Discover if a USDA Home Loan is Right for You with Central Bank

Choosing the loan that’s best for your future home doesn’t have to be overwhelming. By getting prequalified for a home loan, you can streamline the shopping process and narrow down your loan options sooner. Visit a Central Bank location near you to receive a personalized USDA home loan quote, or complete your prequalification online today.