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Rural Development

Housing & Community Facilities Programs


Rural Development

Guaranteed Housing



Frequently Asked Questions (Applicants)


Q.      How much cash will I need to purchase a home?

A.      Most transactions require little or no cash contribution.


Q.      How much can I borrow?

A.      This will be determined by the lender based on your repayment ability and the appraised value of the home.  For information on how lenders determine repayment ability, click here.


Q.      What will my monthly payment be?

A.      The monthly payment will include principal, interest and the monthly cost of real estate taxes and insurance.  Your lender will provide an estimated payment for you.


Q.      Is there monthly mortgage insurance?

A.      No.  There is a one-time guarantee fee charged by Rural Development that can always be financed into the loan.


Q.      What is the maximum loan amount?

A.      There is no maximum except as limited by the appraisal and your repayment ability.


Q.      I do not use credit.  Will this prevent me from qualifying for the loan?

A.      Your lender will make the credit decision.  They are permitted to use a non-traditional credit report or verify your creditworthiness with other sources, such as: utility payment records; rental payments; insurance payments; child care payments; payments to local stores, payments on medical bills, etc. 


Q.      In addition to the home purchase, what else can be financed into the loan?

A.      Closing costs and repairs can be financed up to the appraised value. 



Q.      Can a self employed person qualify for this program?

A.      Yes, you must provide two years earnings statements indicating your income level. See your lender for more information.


Q.      Can I get cash back from closing to pay off other loans or refinance my credit cards?

A.      No


Q.      Can I use this loan program anywhere?

A.      The loan is limited to small communities and rural areas as designated by Rural Development.  Locate eligible areas at


Q.      Do income limits apply to this loan?

A.      Yes.  Total household adjusted income limits vary by household size and location


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