Home Ownership programs Frequently Asked Questions

Rural Development programs ensure all Americans have access to affordable, well-built homes. We offer home loans with no down payment required for eligible applicants buying an eligible home in rural communities.

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Frequently Asked Questions

Is the home I want to buy eligible?

Am I eligible for a Rural Development home loan?

How much may I borrow?

What is the interest rate and payback period?
Payments are based on a fixed interest rate and may be spread over 33 years to make monthly payments more affordable. The interest rate for your loan will be based on the current market rate and your Family Income; call for details. A list of USDA Rural Development local offices and contacts is available online at the link in the navigation menu above right.


How much down payment is required?
No down payment is required for those who qualify.


Is there a deadline to apply?
Home loans are made year round as long as funding is available. Our home loan applications are processed in the order they are received.


How long does an application take?
The time it takes will vary depending on your circumstances, call for details and assistance. A list of USDA Rural Development local offices and contacts is available online at the link in the navigation menu above right.


Are there other requirements?
Yes, all direct home loan recipients must complete a short course on how to prepare for home ownership. Call us to for a current list of organizations offering an approved homebuyer education course in your area. A list of USDA Rural Development local offices and contacts is available online at the link in the navigation menu above right.


How do I get started?
Call the local Rural Development office that serves the county where the home is located. A list of USDA Rural Development local offices and contacts is available online at the link in the navigation menu above right.

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What is a home loan-guarantee?
Loan guarantees help private lenders extend affordable terms to more eligible homebuyers by reducing the risk of lending in rural communities. This program is designed for families and individuals who have the income to qualify for a private loan, but lack resources to make a traditional down payment. Ask your lender if a USDA Rural Development Home Loan Guarantee is right for you. More information for lenders is also available on our Lenders/realtors page.