If you have a low income and are willing to move to a rural area, you may be able to get a rather amazing deal on a loan. The federal government offers a program called Rural Housing Direct Loans, giving borrowers the opportunity to receive up to 100% financing with mortgage payments determined by their income level.

The requirements are quite narrow, as explained by the USDA:

“Applicants for direct loans from HCFP must have very low or low incomes.  Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI…Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance, which are typically within 22 to 26 percent of an applicant’s income.  However, payment subsidy is available to applicants to enhance repayment ability.  Applicants must be unable to obtain credit elsewhere, yet have reasonable credit histories .”

If you’re one of the few that fits these unique requirements, check out the USDA website for more info on these government subsidized mortgages.

photo credit: Micheal  Peterson

See Also:

FHA Mortgage Guide

Tags | creative financing, Rural Housing Direct Loans