USDA Rural Development loans are proving to be a bright alternative  among the seemingly ongoing restrictions and regulations that preclude many potential first time buyers from home ownership. Offered through the US Dept of Agriculture (USDA) to promote and stimulate home sales and development in rural areas, Rural Development (RD) loans have been a silver lining in an otherwise challenging year for the housing market. In 2009,  the Administration allocated ten and one-half billion to the guaranteed loan program.

Offering 100% financing for buyers who qualify, the need for a downpayment is no longer an obstacle. To quality, buyers must still meet property location, income and credit guidelines.  There are a considerable number of eligible properties in the southeast, including entire neighborhoods in metropolitan Atlanta.  Working hand in hand with USDA, Realtors and mortgage bankers have discovered RD loans are serving a much needed void in the first time buyer market. The program also offers homebuying kits, counseling, and  grants for several types of  qualifying developments .

If you or someone you know might fit in this program, the first step is to identify qualifying income and properties. These can be found on the USDA website link.  A lender must also qualify applicants beyond the basics to verify that borrowers meet all criteria for the program. The specific loans are for a thirty year term and the rate is  based on daily market factors just like any other mortgage interest rate quoted to prospective buyers. Funds allocated for the program are being used at increasingly rapid rates.