Rural Housing Loans

Borrowers in rural areas now have easier access to affordable housing.
The MyCommunityMortgage™ mortgage option includes additional flexibilities for rural communities:
Income limits are now higher in rural areas, making it easier for more rural families to afford homes.
New rural appraisal guidelines that make it easier for lenders to lend in rural areas.
Fannie Mae also partners with the Rural Housing Service on its Section 502 Guaranteed Rural Housing Loan and its Rural Direct Leveraging Loan. The loans are backed by the Rural Housing Service, a division of the U.S. Department of Agriculture. They require no down payment for low- and moderate-income buyers.

Key Features

• Below market interest rates may be offered on the Rural Direct Leveraging Loan.
• There are no cash reserves required in your savings account when you go to closing.
• You need less cash up front than you would for FHA loans.
• The borrower's income is limited to 115 percent of the area median income for the guaranteed loan and 80 percent of the adjusted median income for the Direct Leveraging Loan.
• Single-family, non-farm, owner-occupied principal residences, including new manufactured housing units, are eligible.
• Eligibility is limited to rural areas, which generally have a population of no more than 10,000. In areas outside metropolitan counties, the town population limit (where the property is located) may be as high as 20,000.

To learn more, contact the nearest RHS office for information on qualified areas within your state and names of participating lenders. The RHS Web site may also provide additional information.