Navigating home loan financing can seem tricky. There are various types of loans, but in our current credit environment, not all financing options are suitable or available for everyone. Criteria like credit scores, collateral value and down payments are some of the factors that may take people out of the running for particular types of home loans. That’s especially true for people who wish to live in underdeveloped or rural areas.
Fortunately, the U.S. Department of Agriculture (USDA) offers a rural development loan. This is a unique government-insured form of financing that makes it possible for people to build their dream home in rural parts of the country. It also appeals to current rural residents who want to renovate or build onto their existing property.
Benefits of USDA Rural Development Home Loans
- Finance up to 100% of the value of the home
- Zero down payment—nothing out of pocket required
- Seller may cover up to 100% of closing costs
- Reduced monthly payments—no private mortgage insurance (PMI) required
- Available for refinancing existing home loans
Eligibility for USDA Rural Development Home Loans
- Location must not exceed population maximum—typically 20,000 residents
- Income must be below the established median income for the area
- Home plans meet certain criteria for size, design and comply with building codes
- Property must be used as permanent residence—not suitable for building a vacation property
At Highland Builders, we work with clients under a variety of financing terms, including USDA rural development loans. We don’t limit clients to purchase lots in newly developed, up-and-coming communities. In fact, many of our clients wish to have a custom home built in rural locations of Richmond and the surrounding counties. This includes Goochland, Powhatan and Hanover, just to name a few. Whether you’ve purchased the land, already live in the location or want more information on securing a loan to build in a rural area or countryside, we encourage you to contact us today at 804-449-6006.
