Rural Housing/USDA

This web site will explain the USDA Rural Development guaranteed mortgage guidelines.  This is a 100%  loan to value (100% LTV), government guaranteed home loan that is geared to help moderate income families.

As a side note, USDA also offers a USDA Rural Development Direct Mortgage for people with low to very-low income. The guidelines for the Direct loan are quite different so you should visit this site:  USDA Rural Development Direct Loan  (Still no funding as of 02/08/2011.)

USDA Guaranteed Loan

The major benefits are:

  • 100% mortgage LTV based on the APPRAISED value
  • Zero down payment and there is no minimum contribution required.
  • No limit on seller concessions or gift
  • No mortgage insurance required
  • No reserves required
  • 30 year fixed rate only
  • Lenders must be USDA approved.
  • Low interest rates, this is not a sub-prime mortgage
  • Flexible Credit Guidelines.

In the not so distant past few people, including real estate agents and loan officers, were aware of this government program.  Real estate agents, Lenders, and For Sale By Owners should use this 100 percent loan to the advantage of the buyer and the selling real estate.

Not every home or buyer will qualify for this loan. If they do qualify they will be getting one of the top mortgages, with lowest interest rates in the market today.

The sad news is that on March 10th 2010, USDA announced the funding for this program would be depleted in April of 2010.  This had a major impact on the housing market and the economy.  Congress could have prevented this.  

As of today, January 22, 2011, there is funding but this depletion of funds in early spring of 2010 gave many lenders a bad taste for this loan. It is not uncommon for USDA to deplete their funding but normally that happens toward the end of the fiscal year.

We are not part of  USDA Rural Development and we are not a mortgage lender/broker.  We do not collect your information or sell leads.  We put out this information because we believe in educating buyers so they don’t get ripped off in the market.

We have several other sites that cover the mortgage underwriting guidelines for FHA, VA, and Conventional Mortgages as well.  The other websites we operate are listed at the bottom of this page.

As a buyer you should familiarize yourself with the guidelines of each mortgage product.  Then you will know what program best meets your needs BEFORE you shop for a home loan.  The more you know and understand the less likely it is that you will fall prey to people with a different agenda than your best interest.

If you have questions you can email us and we will do our best to help you find the answers.

Kentucky Rural Development Kentucky Guaranteed Housing Zero Down


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502 905 3708 or email


Kentucky Rural Development

Kentucky Guaranteed Housing

Home Financing Options for Lenders

Think Guaranteed First!

  Do you have clients with no down payment?  Do you have clients with some cash but they do not wish to exhaust all of it to buy a home?   How many times have you pre-qualified an applicant only to realize that the mortgage insurance or higher interest rates keep them out of the price range needed to accommodate their family?   The Rural Development guarantee may be able to help!  

  • Generous income limits 
  • Flexible credit and qualifying ratios can help open up a new market of homebuyers. 
  •  Competitive 30 year fixed rates – no monthly mortgage insurance allows you to offer affordable payments to all homebuyers. 
  • No down payment and no cash reserve requirements help you qualify more clients.
  • No maximum purchase price or mortgage limit.
  • Become an expert in Guaranteed Rural Housing financing to gain more clients and close more loans in small communities and rural areas.

Rural Development assists thousands of clients annually to become homeowners.  This year we want you as our partner! 


The advantages

  • Loan up to appraised value plus the guarantee fee.
  • No monthly mortgage insurance (MI).
  • Maximum loan amount is the appraised value plus a one time guarantee fee.
  • No cash contribution or cash reserves required from applicant.
  • Unrestricted gifts.
  • Non-traditional credit acceptable.
  • Streamlined credit documentation available – based upon credit.
  • No minimum credit score.
  • Repayment ratios are 29/41.  Ratio waivers are allowed with documented compensating factors.
  • Not limited to first-time home buyers.
  • Competitive market based fixed interest rates with 30 year term.
  • Available secondary markets: wholesale lenders as well as Fannie Mae, Freddie Mac, and Ginnie Mae.
  • Qualifies for Community Reinvestment Act (CRA)
  • Agency approved lenders underwrite the loan.
  • Any lender, or broker, may originate loans through an Agency approved lender.
  • Agency guarantee commitments are issued within 1-2 business days of receipt of the complete package – based on volume of loan requests.
  • Rural Development provides lender support for questions, training, and outreach assistance.

     Choose Rural Development as the first option

  • A competitive fixed rate combined with no mortgage insurance provides long term savings for the customer. 
  •  Home buyers are able to retain their savings since there is no down payment requirement and closing costs can be financed up to the appraised value.
  • Lenders report an overwhelming preference for the Guaranteed Rural Housing loans for the great value it provides to their customers.  Choose the best program for your customers!

Applicant eligibility criteria: 

  • Occupy the property as your primary residence.  
  • Be able and willing to occupy the property. 
  • Be a U.S. citizen, a U.S. non-citizen national or a qualified alien
  • Demonstrate an ability and willingness to meet obligations and debts as they become due.
  • Have a credit history that indicates a willingness to meet obligations as they become due.
  • Have an adjusted household income that is within Rural Development guidelines based on the number of persons who will occupy the home.  
  • Purchase a residential property that is within a Rural Development eligible area. 


 Checklists and web site links:

  What is the Rural Development “guarantee?

  • Lenders have less risk with the Rural Development guaranteed loans than with conventional loans covered by private mortgage insurance. 

Thank you for visiting our web site.  We look forward to working with you as partners in providing affordable housing opportunities in rural areas.  Let us know how we can further serve you.

Apply today for Free Below:



Apply below for free–I am a USDA Expert and have done over 129 USDA loans in my lifetime in Kentucky


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