The government provides loans to those individuals who have low to moderate income for permanent residence in rural areas. To qualify for these government loans is not that hard and the restrictions are small.
Their main objective is to assist very low, low-income, and moderate-income households so that they can get decent, safe, and modest housing as a permanent residence.
Description for Uses and Use Restriction Reads:
The eligibility requirements are:
It would be very wise to check the area that you are interested in to see what they yearly taxes are as some areas are very high compared to others. Depending on your age, and area, taxes could run anywhere from 500.00 per year up to thousands of dollars per year. By age, I mean that senior citizens get a huge tax break on property taxes.
You may be required to show proof of your inability to get credit elsewhere, verification of your income, any debts that you owe,and other pertinant information on the application such as plans, specifications, and cost estimates.
Rural Development field offices have the authority to approve most Direct loan requests. The processing of guaranteed loans will vary from State to State. You will need to contact the Rural Development State Office in your area. It will be listed in your local telephone directory.
The time it takes to get approved or disapproved can range anywhere from 30 days to 60 days depending on the availablity of funds and whether or not the application was filed while a backlog of applications are present. For guarantees, a decision is required within 3 days of loan package submission by the approved lender.
You can also reapply at any time.
Just so you know, the applications for direct loans far exceed available funding. There’s usually a waiting list if you want direct loan funding for a home.
Range and Average of Financial Assistance
From $1,000 to $105,000; an average of $73,350 for 502 direct loans, and 93,000 for guaranteed loans. Loans in high cost areas may be higher.
You can contact their offices here:
Headquarters Office
Director, Single Family Housing Direct Loan Division or Director Single Family Housing Guaranteed Loan Division, Rural Housing Service (RHS), Department of Agriculture, Washington, DC 20250. Telephone: (202) 720-1474 (direct loans); (202) 720-1452 (guaranteed loans).
Rebecca Game is the founder of Digital Women ®, an online community for women in business. A 30 year entrepreneur and dedicated to helping other women find business loans and business grants. Visit her site: Business Grants for Women or at her main site: http://www.digital-women.com
