Rural mortgage loan programs from the USDA

US Department of Agriculture’s Rural Housing Service provides a variety of financing services to low and moderate income rural residents, governments and non-profits engaged in creating and maintaining low income housing. If you live in a rural area, you could get a home loan for up to 102% of your house’s value or a low/no interest loan for repairs, new septic system and more. There are many programs available. Check them out and find a list of local offices at the USDA Rural Development web site.
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Not many people take advantage of these USDA programs. They have just under a million mortgages totaling less than 1% of the mortgage debt outstanding in the U.S. But if you qualify it can be a good deal, with low (or even no) interest. Different programs have different qualifications so you have to check out the one(s) that interest you, but if you go down this path, there is one caveat: They are known for their collection efforts, and they are quick to foreclose. If they do foreclose and sell your property, they will come after you for any shortfall (difference between what they sell for and what you owe), even if you live in a “non-recourse” state.

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