Rural Development Guaranteed Housing

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Under the U.S. Department of Agriculture (USDA), the Rural Development Administration helps low- to moderate-income families purchase homes with low interest rates and little or no down payment. In 1994, the Rural Housing Service (RHS) was created as a result of the Department of Agriculture Reorganization Act to meet the housing and community development needs of rural America.

Am I eligible?

First-time and previous homeowners who are looking to purchase a home in certain rural areas of the U.S. can benefit from this home loan. To qualify for Rural Development Guaranteed Housing, you must:

• Occupy the property as your primary residence
• Not currently own an adequate home
• Be unable to pay a 20% conventional downpayment
• Be a U.S. citizen
• Prove that your income is stable and dependable enough to enable loan repayment
• Have a credit history which proves an ability to meet previous financial obligations
• Have an income level that falls below the limit, according to the number of occupants in the home
• Purchase a residential property that is located within a Rural Development area*

*Go to The USDA for eligible areas.

How does it work?

The Rural Development program offers you a chance to borrow a home loan despite an inability to produce a conventional downpayment.

What are the alternatives?

If the Rural Development Guaranteed Housing program is not best suited to you, you may opt for another FHA loan, such as an ADDI loan.

Do I really need this type of loan?

If you do not meet the above requirements or are able to afford a downpayment, you may opt for a conventional mortgage.

Can I afford it?

*Visit The USDA for a calculator.