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What is Rural Housing?

Added: (Mon Dec 04 2017)

Pressbox (Press Release) - The meaning of "rural" according to the vocabulary of the USDA is entirely different from the usual definition of' rural' that most individuals know. The meaning is so different that individuals residing in most places might be living in a town that's regarded as 'rural'.

In addition to many towns falling under the category of rural areas, based on the definition of the United States Department of Agriculture, roughly half of Texas counties are also defined as 'rural'. A large number of cities in Texas are actually situated inside the United States Department of Agriculture eligible area map that qualifies as 'rural'.

The relatively broad categorization of rural areas by the United States Department of Agriculture offers prospective homebuyers a vast number of homes to consider. Real estate agents can also profit from the categorization, permitting them to exploit the program through their preferred mortgage lender.

Eligibility Criteria for Rural Housing Financing

The needs of rural housing must be met before applicants can benefit from the program. Below are the essential components that applicants must meet to benefit from the program.

- The house to be purchased using the program should be situated within a qualifying region. Intending mortgage borrowers are able to view the eligibility map of the areas to check for qualified houses in the area.
- The course is not intended for applicants to make money. The property they are looking to purchase cannot be an income generating property. No second homes, nor investment properties are actually acceptable. The home has to be used as a primary residence only.
- Income limits are set in place by the RHS based on each place. The family income for USDA Guaranteed home loans may not exceed 115 % of the area median income or AMI.5
- Applicants can't buy houses that possess an in-ground swimming pool.

It may be seen from the requirements mentioned previously that qualifying for a Rural Housing Service mortgage is comparatively simple in comparison to traditional home loans.

Benefits of RHS Loan Program

The advantages of the RHS home loan program cannot be overemphasized. One of the more distinguished benefits of the program is the hundred percent financing feature. Nonetheless, 100 % financing is just among the numerous advantages of the system. This is mainly true considering the climate of the real estate sector.


It's known that banks attempt to sell their foreclosed homes as quickly as possible. Therefore, this gives an excellent chance for prospective home buyers, enabling them to buy homes below the market value. First-time homebuyers will mainly find RHS home mortgages attractive, thanks to the full hundred % financing and low interest rates.

While hundred percent financing is one of the features of the mortgage package, this means 100 % of the purchase price. The guidelines also show that buyers can borrow as much as 102 % of the projected amount, which includes the two % guarantee fee paid to the United States Department of Agriculture. This allows home buyers to keep their savings and also provide some kind of financial security. Other benefits include flexible credit guidelines and no Monthly Mortgage Insurance Premium.

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