Rural Development Loans

From America’s Mortgage Resource with offices in Metairie, New Orleans, Mandeville & Baton Rouge

Are you interested in purchasing a home or building a new home in a rural area? This can be especially difficult if you cannot afford a high down payment or meet some of the lending requirements in order to qualify for a conventional mortgage.

Fortunately, much of southern Louisiana is classified as “rural” for the purposes of qualifying for RD financing, and our team of loan experts at America’s Mortgage Resource can provide the resources and support you need to obtain a rural development loan.

Introduction to Rural Development Loans

The United States Department of Agriculture, or the USDA, backs rural development loans. These financing programs are designed to help lower-income families receive the financing they need in order to purchase, build, or repair a home in a rural area. Because these loans are insured in the event of a default, it is much easier for borrowers who would be considered high-risk to receive financing for a new home.

Requirements to Receive Rural Development Lending

In order to receive a rural development loan, you will need to meet the following requirements:

  • Your family cannot currently have adequate housing.
  • Your household income is less than or equal to 115% percent of the median income for your area.
  • Your credit history does not have to be in great shape, but your total housing expenses, plus loan payments cannot exceed 41% of your income.
  • The home you are purchasing must be in an approved area, and must be safe and modest in size and cost.

A loan professional at America’s Mortgage Resource can help you determine if you are eligible.

Benefits of a Rural Development Loan

The primary goal of rural development lending programs is to enable families to access affordable rural home loan opportunities when conventional financing solutions are not viable. Rural development loans enable borrows to benefit from:

  • No down payment requirement
  • Flexible credit requirements
  • Low interest rates and mortgage insurance rates
  • 100% mortgage loan-to-value based on appraised value of the home
  • 30-year fixed rate

If you are interested in exploring rural development lending opportunities, first speak with a qualified loan specialist to better understand your options. Please contact one of our team members at America’s Mortgage Resource with offices in Metairie, New Orleans, Mandeville or Baton Rouge for a free quote.