Written by - February 23, 2023
There are many misconceptions about rural areas and what constitutes one for the purpose of qualifying for a USDA loan. The USDA has set specific requirements for what they define as rural for their loan programs, including a variety of factors that will determine whether your area qualifies.
Before we dive into defining what is considered rural for a USDA loan, let's cover some basics about the loan itself. USDA loans are offered by the United States Department of Agriculture to help low and moderate-income families purchase homes in rural areas. They have a number of benefits, including 100% financing, low interest rates, and no mortgage insurance required.
Now that we have some context, we can talk about what is considered rural for a USDA loan. The USDA has very specific guidelines for what they define as rural, which are based on population density and proximity to urban areas.
If you are not sure whether your intended property is in a USDA-eligible area, you can easily check by visiting the USDA website and entering your property address. If your property falls within an eligible area, you may be able to obtain a USDA loan to help finance your home purchase.
Living in a rural area has a number of benefits. Not only can you enjoy stunning natural landscapes and a slower pace of life, but you may also be eligible for one of these exceptional benefits.
To qualify for a USDA loan, you will need to meet some basic eligibility requirements. You must have:
If you meet these requirements and your property is located in a USDA-eligible area, you may be able to take advantage of the many benefits of a USDA loan.
If you are interested in a USDA loan and wondering where to start, look no further than Mortgage Brokers Pro . We are a trusted lender and have helped countless families achieve their dream of home ownership with our expert guidance and competitive rates. With personalized service and commitment to your satisfaction, we strive to make the home-buying process as smooth and stress-free as possible.
In conclusion, rural areas can be defined in a number of ways, but for the purposes of a USDA loan, they are generally areas with a population of 35,000 or less and a reasonable distance from an urban area. If you are interested in a USDA loan, be sure to check your eligibility on the USDA website and consider working with Mortgage Brokers Pro for the expertise and support you need to make your dream of owning a home a reality.