The Rural Housing Mortgage Program

By : Joshua Bucio

There are many mortgage programs available for home buyers, but many people are not aware that some no down payment mortgage programs still available. There are two programs still available that are true 100% financing mortgage loans and the Rural Housing Program is one of them. This program is not subject to first time home buyers only.  It’s available to all home buyers.

This program is unique, because it’s mainly based on property location and income limits. You can find these guidelines on the USDA Rural Development website.  The property you are buying has to be in an eligible area. Most populated areas are not eligible, since the program is meant for rural areas. The income limit is based on the county the property is located.  On average, the annual income limit is around $75,000.  You have to use the total household income, if you live with another person.


Here are of benefits of the Rural Housing mortgage program:

  • It’s a true no down payment program.  Finance 100% of the purchase price.
  • You may have a credit score as low as 620 with most lenders.
  • Most areas outside of a populated city will be eligible.
  • Funds gifted from a relative for the costs and prepaid items are allowed.
  • There is no MI (mortgage insurance) payment required.
  • There is a guarantee fee with this program, but you can finance this fee into your mortgage.
  • If you make too much income, you can deduct things like child care expenses and elderly family medical expenses.


This program has become very popular among first time home buyers, since many have little to no money for a down payment.  The program has also has a benefit when you need to refinance the Rural Housing program in the future.  It’s more of a streamline refinance process, unlike a conventional mortgage refinance.

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