The Rural Development – Homeownership Loan Guarantee Program provides supplemental funding to the U.S. Department of Agriculture’s (USDA) preexisting Homeownership Loan Guarantee Program.

Under the Homeownership Loan Guarantee Program, the USDA guarantees loans made by private sector lenders so that if the borrower defaults on the loan, the federal government will pay the lender for expenses and losses incurred after property disposition. These 30-year loans are used to help low-income homebuyers purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites.

The homebuyer can access these loans through any approved lender including a state housing agency or any lender approved by the U.S. Department of Housing and Urban Development (HUD) for submission of applications for Federal Housing Mortgage Insurance.

PLEASE NOTE: The Rural Development – Homeownership Loan Guarantee Program is administered by the U.S. Department of Agriculture (USDA). See this LINK for more program details, including income eligibility levels and loan terms.