The Rural Development Program, often referred to as RD, is a home loan program backed by the U.S. Department of Agriculture. The goal of the program is to help spur growth in more rural areas. Given the USDA’s mission with the program, there are a couple of unique requirements and restrictions to meet the qualifications of the program so let’s review those:
First, the property must be in an eligible area. The program is quite forgiving with area restrictions therefore the property doesn’t necessarily need to be “out in the middle of nowhere” to qualify, however, if you are looking in a major metropolitan area, this program simply won’t work. You can search property eligibility here at RDArea.com.
Second, borrowers must meet the guideline regarding household income limits. This restriction, so to speak, can seem confusing but, for the calculation, RD looks at all the income earned by members in the household to confirm the total is under a predetermined threshold. The threshold amounts vary from area to area. As an example, for 2021 in Kalamazoo County, Michigan, the income limit for a household with 1-4 people living in it is $91,900. That limit increases to $121,000 for households with 5+ family members. So, actually, many prospective home buyers will be under those limits. You can search for income limits in your area here. Now that we got that out of the way, let’s review the many benefits this loan program has to offer.
One of the biggest myths out there is that you need a bunch of money to buy a house. That’s simply not true. There are a number of No and Low down payment options for home buyers. On top of that you don’t have to be a first time home buyer to access many of those programs. During our next lunch and learn we will cover all the different options out there for buyers looking to minimize their down payment. Over the last couple years its been harder to get a lot of these types of offers accepted. However, with the market going back to a much more “normal” state it’s not nearly as hard as it was just a few short months ago. This is the perfect time for Realtors to reconnect with their past customers and get back out there looking. Come check out this lunch and learn and get a refresh course on low down payment options for buyers!
Here is a list of some of the things we will cover during the event:Visit Jeremy's Blog