Rural Development (RD) Mortgage Loans

Memphis, TN - The Karlton Govan Lending Team

If you’re looking for a rural development (RD) mortgage loan in Memphis, TN, you’ve come the right place!

The Benefits a Rural Development Loan

With very different economies than urban areas, complete with unique challenges, potential home buyers in rural areas can face a steep uphill climb when it comes to getting the home they want.

Generally speaking, rural areas have fewer jobs available and often suffer at the whims of seasonal employment and even crops dependent on unpredictable weather.

For these reasons and more, the U.S. government has put a USDA-backed program in place that helps residents of more rural areas get home loans.

And, it may surprise you how much of the greater Memphis & surrounding areas qualifies as “rural” as defined by this program!

Guaranteed Loans

The USDA guarantees the mortgage made by a local lender. This means that they assume some of the risk of the loan by allocating funds to help the lender if things don’t go well with the repayment.

This is a lot like a VA-backed or an FHA loan. It is designed to make lenders feel more secure when lending to people they would normally consider “risky” borrowers.

Loans from the USDA

Unlike the FHA program, these loans can come from the USDA itself, meaning it issues the loan and collects the repayment. This can result in very low interest rates—lower than FHA or VHA loans.

Loans and Grants to Improve Your Home

There are also loans available for people who want to do home improvements. And, in some cases, you can even get an outright grant to pay for a home improvement.

This means you get money you don’t have to pay back & can be used to pay for as much as $27,500 of your home improvement project.

How to Qualify

To qualify, you have to be able to demonstrate that you have a real need.

For instance, you need to be without what is termed “decent, safe and sanitary housing.” You have to be unable to get a loan from other, more traditional sources.

You also have to have a lower income, and this varies according to where you live.

A rural development loan helps level the playing field for people in rural areas of the country.

With this resource, many more people can have access to the American dream of owning your own home.