Rural Development Loans
Rural Development (formerly Farmers Home Administration) is another government entity. In contrast to FHA and VA, however, Rural Development does loan money directly to borrowers, in addition to guaranteeing loans made by eligible mortgage lenders. Their loans are available in communities with populations of 20,000 or fewer people. Rural Development has a variety of different loan types including rehabilitation loans, leverage loans, and guaranteed loans.
Rural Development loans typically:
- Target low- to very low-income families
- Subsidize interest rates to in order to qualify these families for mortgages