How to get single Family Housing Guaranteed Loan Program

The Single Family Housing Guaranteed Loan Program enables eligible low- and moderate-income families to purchase, construct, improve, rehabilitate, or relocate a safe, sanitary, and modest primary residence in eligible rural areas with 100% financing. The program reduces the risk for approved lenders by providing a 90% loan note guarantee, thereby enabling eligible rural homebuyers to qualify for a no-money-down loan.

To apply for this program, applicants must meet income-eligibility requirements (not exceeding 115% of median household income), agree to personally occupy the dwelling as their primary residence, and be either a U.S. Citizen, U.S. non-citizen national or a Qualified Alien. To determine if a specific address is in an eligible rural area, the USDA’s Eligibility Site can be used for verification.

This program is intended to promote affordable homeownership opportunities for low- and moderate-income households living in rural areas. This creates a better quality of life for residents and contributes to thriving communities. Interested applicants can apply through USDA Rural Development’s network of approved lenders, who are also responsible for answering any questions about eligibility and reviewing specific scenarios.

It’s important to note that USDA Rural Development doesn’t endorse any specific private sector lenders, so it’s recommended that applicants shop around and compare lenders to find the best service and financial options available. The approved lender chosen will handle the entire loan application process and work with Rural Development staff to guarantee the loan. If seeking a Single Close Construction-to-Permanent Loan, there is a list of current participating lenders for that program available.