The U.S. Department of Agriculture has a program to help people buy a home in rural America, helping to preserve that portion of our culture. As more and more people migrate to the cities, fewer and fewer remain in the hinterlands. There are parts of our great land that consist of nothing more than deserted farmhouses and collapsing barns.
There are pleasures in rural living that cannot be duplicated in the city. And, given the modern, connected age we live in, no matter where you live, the entire world is just off your doorstep.
Usually, when you decide it's time to stop renting, and buy a house, your first concern has to be finding the money for a down payment. Most banks require an absolute minimum of 5% as a down payment. For a home that costs $100,000 (Not very expensive, today), you would need at least $5,000 dollars. Few people have that sum sitting in the bank, and building up that amount takes precious time.
With the USDA programs available, no down payment is needed, and even the money for closing costs can be included in the loan. That means if you have the ability to make the payments, and you meet the income requirements, you can start packing.
There's no actual restriction on the price of the home you can buy, but where that home is has some requirements. Most of Missouri is available for home purchase through this program, but there are a few places that, obviously, don't qualify as rural. So, you might not want to start looking in downtown St. Louis.
Your income can be as much as 115% of the median for the area, and your actual income will determine how much house you can afford (which makes perfect sense). You are allowed to borrow up to 102% of the purchase price, which accounts for closing costs,
To start the process, there are a number of places to go, depending on your comfort level. Your local bank, a mortgage lender, a mortgage broker, or the Department of Agriculture itself are among some of the possible starting points.
Your best course would be to to determine if you qualify, and how you would be able to borrow. Then, you can shop for a home knowing exactly what you can afford to pay.
There are places where the government is less than helpful. There are areas where it could be argued that the government is in the way. In the area of home ownership, our government has many programs which make it possible for nearly anyone to become a homeowner.<< Back to the list.
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Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.