When thinking about purchasing a home, the first thing to consider is the location of the property. Do you want to live in a bustling city with amenities such as shopping, nightlife, restaurants, and bars? Despite these advantages, however, living in a city can be hectic and expensive, and may come with the inconvenience of being stuck in traffic often.
This is where rural living presents a fantastic alternative–in the current world of remote working, it’s easy to see why Americans are flocking to the countryside. After all, who wouldn’t want a life free from the distractions of metropolitan chaos where people know each other’s names and where you can actually gaze at the stars when you look up at the night sky!
A USDA loan has many benefits for those looking to finance their next home in the countryside. Let’s take a look at what exactly a USDA rural home loan is and what makes it a great option for homebuyers looking to live a quieter life outside the city.
What Is a USDA Loan?
The United States Department of Agriculture doesn’t just regulate farming, dairy, and meat–it also has a lesser-known division that helps finance homes and farms in rural areas of the United States.
While the United States has several federal loan programs designed to assist buyers in purchasing a house, the USDA loan program focuses specifically on helping home buyers looking to purchase a home in rural areas of America.
The USDA Regulates Farms–Do I Have To Be a Farmer?
While it is true that the USDA regulates farming and farm animals, you definitely don’t have to be a farmer to obtain a USDA loan.
In fact, almost all housing types are allowed under USDA loan regulations–you could even buy a condo with a USDA loan, provided that you meet all criteria at hand, including rural locations and income requirements. There are thousands of small towns across America where one could get a USDA loan approved, so don’t think that just because you are going to live in a certain community that a USDA loan isn’t a great option for you.
Why Choose a USDA Loan?
The USDA loan offers several benefits for people looking to purchase property in rural America. Here are some of the benefits that a buyer can expect when purchasing a home through the USDA program:
What Exactly Does “Rural” Mean?
You may wonder what the USDA means when they talk about “rural” properties. An exact definition of a rural area is tricky as many places may qualify while other similar areas may not, based on various guidelines. However, a rural area is generally defined as one with a population less than 20,000; in some instances, a population of up to 35,000 may be allowed with additional qualifying factors.
The good news is that over 97% of all land area in America falls under what the USDA defines as “rural.” Over 100 million Americans live in these areas, which means that one out of three people in America currently resides in a rural area, according to the USDA.
The USDA maintains detailed maps that designate which areas are rural and which fall under the category of Statistical Metropolitan Areas, which covers all large cities in America and their surrounding suburban areas.
For home buyers looking to get away from city life to settle in the more serene setting of a small town, the USDA loan is an excellent program to look into. Even if the house you are considering doesn’t fall under the USDA’s definition of rural area, there are several federal home loan programs designed to help everyday Americans pursue their dreams of home ownership.
At OVM Financial, we are committed to helping you realize this dream. Our dedicated team of loan officers are here to answer any questions you may have and to assist you throughout the loan process–from the initial application all the way to closing.