Buying or Building a Home

The Direct Home Loan Program May Work For You

The Rural Development Direct Home Loan Program ensures 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 Pennsylvania.

  • Is the home I want to buy eligible?

  • Use our online Address Search to find out if the property you would like to purchase is in an eligible area. Homes financed through Rural Development must be modest for the area where they are located. In-ground pools are prohibited. See below for information on maximum loan amounts.

  • Am I eligible for a Rural Development Home loan?

  • Eligibility for a Rural Development Home Loan (mortgage) is based on a number of factors including things like family size, household income, acceptable credit history, ability to make payments and the location of the property. Use our online Family Income Calculator to find out if you might be eligible. You may also check the Family Income Limit for the county where the property you would like to purchase is located.

  • How much may I borrow?

  • Loan limits are based on the cost of a typical, modest home in the same area. Check onilne for a list of the Maximum Loan Amounts for the county where the property you would like to purchase is located.

  • 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 Contacts in Pennsylvania is available online.

  • How much down payment is required?

  • No down payment 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.

  • Are there other requirements?

    Yes, all direct home loan recipients must complete a short course on how to prepare for home ownership. Call us for a current list of organizations offering approved homebuyer education.

  • How do I get started?

    Call the Rural Development office that serves the county where the home is lcoated. A list of USDA Rural Development Contacts is available online.

  • 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.