Posted on: 08th Dec, 2006 11:31 am
are there any loan programs for low income people living in rural areas
Hi Battelle,
Section 502 Guaranteed Rural Housing Loan Program is one such option which people living in rural areas can utilize.
This program helps people living in such locations having low but steady income get a loan.
Section 502 Guaranteed Rural Housing Loan Program is one such option which people living in rural areas can utilize.
This program helps people living in such locations having low but steady income get a loan.
There are few other things that you should be aware of. Like this type of loan helps low income rural residents to get average priced houses for their own usage as residence. The purchase can be of a new or any existing house or any new manufactured house.
thnaks to all of you, if anyone can also provide some information on the eligibility one is required to meet and the kind of loan I can get, then i would be very grateful
Hi JBattelle,
To be eligible for this type of loan you should have dependable income which can be up to 115% of the median income in your area (which is called Adjusted Area Median Income or AMI).
You should also have a reasonably qualifying credit history. The Rural Housing Service (RHS) normally uses 2 calculation methods to determine if a person would be able to undertake the mortgage burden or not.
Firstly, the burden of PITI, which is Principal, Interest, Taxes and Insurance must be twenty nine percent or less of your gross monthly income and,
Second factor is that the total of your monthly debts must be forty one percent or less of the gross monthly income.
The other thing is that the loan should be taken from a lender approved by RHS and the term for the loan is 30 years with fixed rates as per the market interest rates.
Do let us know if you have any other queries.
Thanks
Blue
To be eligible for this type of loan you should have dependable income which can be up to 115% of the median income in your area (which is called Adjusted Area Median Income or AMI).
You should also have a reasonably qualifying credit history. The Rural Housing Service (RHS) normally uses 2 calculation methods to determine if a person would be able to undertake the mortgage burden or not.
Firstly, the burden of PITI, which is Principal, Interest, Taxes and Insurance must be twenty nine percent or less of your gross monthly income and,
Second factor is that the total of your monthly debts must be forty one percent or less of the gross monthly income.
The other thing is that the loan should be taken from a lender approved by RHS and the term for the loan is 30 years with fixed rates as per the market interest rates.
Do let us know if you have any other queries.
Thanks
Blue
Hi JBattelle,
Let me also add that RHS charges a guarantee fee of two percent of the loan amount from the lender. This fee could be passed on to you by the lender.
One of the advantages of this type of loan is that there is no requirement to have private mortgage insurance and the loan has acceptability in the secondary market by Fannie Mae and Ginnie Mae.
For getting this type of loan you will need to contact your local rural development office on related information and the details of lenders who would be providing the loan and are approved.
Colin
Let me also add that RHS charges a guarantee fee of two percent of the loan amount from the lender. This fee could be passed on to you by the lender.
One of the advantages of this type of loan is that there is no requirement to have private mortgage insurance and the loan has acceptability in the secondary market by Fannie Mae and Ginnie Mae.
For getting this type of loan you will need to contact your local rural development office on related information and the details of lenders who would be providing the loan and are approved.
Colin
Hi JBattelle,
There are several loan programs available for low income people living in rural areas. Some of the popular ones are the Section 502 Direct Single Family Housing Loan and Section 502 Guaranteed Single Family Housing Loan Program.
The Rural Housing Service (RHS) offers the Direct loan program (which is made and serviced by the staff at the U.S Department of Agriculture). It guarantees the Guaranteed loan program provided by commercial lenders. This type of guaranty reduces the risk factor for the lenders and this makes them eager to provide loans to low-income borrowers.
For a detailed information on housing loan programs for rural people, refer to our section on the Rural Housing Service and its loan programs.
Thanks,
Caron.
There are several loan programs available for low income people living in rural areas. Some of the popular ones are the Section 502 Direct Single Family Housing Loan and Section 502 Guaranteed Single Family Housing Loan Program.
The Rural Housing Service (RHS) offers the Direct loan program (which is made and serviced by the staff at the U.S Department of Agriculture). It guarantees the Guaranteed loan program provided by commercial lenders. This type of guaranty reduces the risk factor for the lenders and this makes them eager to provide loans to low-income borrowers.
For a detailed information on housing loan programs for rural people, refer to our section on the Rural Housing Service and its loan programs.
Thanks,
Caron.
Hi,
U.S.provide loan to specially rural area people with low interest rate.
loan provide for home, Agriculture.No mortgage insurance or down payment is required in case of such loans.
The Rural Housing Service (R.H.S.) this is provide by U.S. Gov.
For your information you can visit "www.rurdev.usda.gov/rhs/ ".
Regards
Dilip
U.S.provide loan to specially rural area people with low interest rate.
loan provide for home, Agriculture.No mortgage insurance or down payment is required in case of such loans.
The Rural Housing Service (R.H.S.) this is provide by U.S. Gov.
For your information you can visit "www.rurdev.usda.gov/rhs/ ".
Regards
Dilip