What is an RHS Loan?

If you’re thinking of buying a home, you may have heard of RHS loans . But what are they? In this blog post, we’ll explain everything you need to know about RHS loans, including what they are, how they work, and whether they might be right for you.

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What is an RHS Loan?

The Rural Housing Service (RHS) is a part of the United States Department of Agriculture (USDA). The RHS was created to help rural Americans obtain financing for their homes.

There are two types of loans that are available through the RHS. The first is a direct loan, which is made by the RHS to a qualified borrower. The second is a guaranteed loan, which is made by a private lender but is guaranteed by the RHS in case of default.

Both types of loans are available for low- and moderate-income borrowers who are unable to obtain financing from other sources. In order to be eligible for an RHS loan, you must be a citizen or permanent resident of the United States and you must have an adequate income and credit history.

If you are interested in applying for an RHS loan, you should contact your local RHS office to find out more about the program and to see if you qualify.

Who is eligible for an RHS Loan?

The U.S. Department of Agriculture (USDA) Rural Housing Service (RHS) is a federal government agency that provides mortgage loans and grants to low- and moderate-income families in rural areas of the United States. The RHS Loan program is designed to help families finance the purchase or repair of their primary residence in a rural area.

To be eligible for an RHS Loan, applicants must:
-Be U.S. citizens or legal aliens
-Have a satisfactory credit history
-Demonstrate the ability to repay the loan
-Be unable to obtain financing from other sources
-Meet income guidelines
-Purchase a property located in a rural area

What are the benefits of an RHS Loan?

The United States Department of Agriculture’s (USDA) Rural Housing Service (RHS) offers mortgage programs to help low- to moderate-income rural residents purchase, repair or improve their homes. According to the RHS, its mission is “to increase economic opportunity and improve the quality of life for all rural Americans.”

The RHS offers two types of loans, direct and guaranteed. The direct loan program is targeted toward very low-income applicants, with income limits set at 50 percent below the area median income. Loan terms can be up to 33 years, with an interest rate set at 3 percent for repayment assistance.

Guaranteed loans are made by approved lenders and are available to low- and moderate-income applicants with incomes below 115 percent of the median income in the area. These loans can be used for both home repairs and purchases, and terms can be up to 30 years with interest rates capped at 6 percent.

Both loan programs require that applicants demonstrate a “reasonable ability to repay” the loan as well as meet other eligibility criteria such as US citizenship or permanent residency, occupancy of the property as a primary residence, and more.

If you are interested in learning more about RHS loans or other USDA programs, you can visit the RHS website or contact your local USDA office.

How to apply for an RHS Loan?

To request an application for an RHS loan, you may:
-Call the Customer Service Center at (202) 720-2791
-Fax a completed Contact Information Form to (202) 690-6438
-Complete and submit the online Contact Information Form
You will then be contacted by an RHS representative who will assist you in completing the application process.