REALTORS®, like myself are asked quite often about a Rural Development loan and what this entails. The Rural Development Guarenteed Housing Loan is operated through the United States Department of Agriculture (USDA) Rural Development section. The program provides guarenteed home loans for those who qualify by meeting certain income standards. This type of rural development loan is one of only a few ways a homebuyer can purchase a home with no money down. Be sure to check out my other blog posts about eligibility and additional types of rural development funds.
Eligibility for these funds is never as challenging as actually finding a property that qualifies for the program. According to the Housing and Urban Development (HUD), a property that qualifies for rural development funds "under the Section 502 program, housing must be modest in size, design, and cost. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. New Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards. " Sounds easy right?
Claremore and Owasso Oklahoma have a unique property eligibility situation because of the rapid growth expansion of the Owasso area. Most properties within the city limits of Claremore, which has a little more than 17,000 citizens are not eligible for rural development loans. This makes it challenging to find additional properties that will meet the criteria, and yet be within the income reach of buyers. However, in an unusual twist the city of Owasso has experienced rapid growth. It currently has a population of well in excess of 35,000 citizens. Interestingly enough, almost all of the properties within the city limits are eligible for the rural development program. Below is a map showing the areas in which eligible properties are located. Note: homes located in the shaded areas are not eligibile for the Rural Development loan programs.
How do you know if your property is eligible for the rural development financing? The USDA has taken this into consideration and provides a property eligibility website to assist you. Just enter the address and the site tells you the status of the property. It should be noted that there are several other communities in the Rogers county area that are entirely eligible for rural development. The challenge is to find the perfect property that meets the program and allows the eligible buyer to purchase with zero money down.
If you are searching for a REALTOR® who is knowledgeable about rural development loans and the properties in the area, my experience in this area may prove helpful. I am committed to doing my very best to help your family find the perfect home for zero down! Remember, what MATTERS to YOU, MATTERS to ME!
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