The United States Department of Agriculture has, since 1862, been regarded as the party responsibly for developing and executing government policy on agricultural facets like food and farming. What slips the minds of most when thinking of the USDA is that the agency is also in the mortgage business. Mortgages. Yes, mortgages.
Over rural Colorado somewhere between Limon and Lamar last Winter.
Two types of loans are currently available, both of which might be of particular interest to buyers looking for rural properties: Direct Loans, and Guaranteed Loans. The two carry many similarities, below is a synopsis of each.
Direct Loans
- No down payment required
- 102% financing
- Buyers may not have incomes above 80% of the area median income
- Buyers must be without adequate housing
- Housing must be of modest design, size, and cost for the area
Guaranteed Loans
- No down payment required
- 102% Financing
- Buyers may not have incomes above 115% of the area median income
- Housing must be of modest design size, and cost for the area
"Rural" might not be as rural as one might think. I lived in Elizabeth, Colorado for many years, which might not ring any bells for anyone beyond Elbert County, but for those of us who know the land, Elizabeth has been turning into quite the little metropolitan: it can now be found on maps and even has its very own Wal-Mart. There, USDA loans are incredibly common and surprisingly common in many other cities nationwide. The USDA website has an easy-to-use map for determining an area's eligibility for coverage, I highly recommend at least a glance.
Feel free to contact us with any question regarding USDA loans, especially in Colorado! Happy rural home hunting!
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