Today, the dream of home ownership has become a reality due to some great USDA loan programs. These USDA loan programs improve rural housing all across America and allow thousands to own a home. USDA loans also improve the quality of life in rural areas, bringing communities together to make sure their rural housing market is competitive and strong. Best of all, most of these programs are accessible to any home buyer- new, experienced or first time.

The first USDA loan program is the Direct Loan Program. Under this program, qualifying families who make less than 80% of their counties average income can apply for a mortgage directly financed through the USDA loan program. This program has helps thousands obtain loans for rural housing when they would not otherwise qualify with conventional banks. The direct loans can also be used to build a new home in a rural housing area. This loan program is also ideal for those who already have a down payment saved up, and want to build a new house.

The second USDA loan program is the Guaranteed Loan Program. Under this program, families do not need a down payment to purchase a home. The USDA guarantees 100% of the loan. This allows many poorer families to obtain housing, much like the Direct Loan Program. This program differs in that the family obtains the original mortgage from a private lender, and the USDA Guarantee Loan Program offers to pay the mortgage if the family should default. The family would not be allowed to stay in the property but the private lender would still get money for the mortgage. This offers security to the lender, and allows rural housing communities to continue their development.

Before homes were produced in bulk for the suburbs, many times an entire community would help build a home. The USDA offers a third program called the Mutual Self-Help Program. Before the buyer can move into the home, they must complete 65% of the work to build or refurbish the home. The USDA enlists local government and non-profit organizations to supervise 5-12 enrollees in the Mutual Self-Help Program altogether, and each person is allowed to work on each other’s homes. Only when everyone’s home is completed can those enrollees move into their houses. The enrollees get rural housing loans through the Direct Loan program, and they also get a substantial discount on their home price. This powerful program allows communities to come together and neighbors to form an important bond. This also allows new rural areas to develop, as mutual home building begins.

These USDA loans may seem like carefree solutions for many low income families, but they do come with rules. There are loan limits imposed across the U.S. depending on where the rural housing is located (you can access them here). Also, the low income family must demonstrate at least 80% below the median income, or they cannot qualify. With such good USDA loan programs, rural housing just may become the next big crave!