Rural Housing Services (RHS)

It is also called rural housing services (RHS) or rural housing loans. It Offers low interest rate loans to people with low or moderate income and who live in small towns or rural areas.

Rural mortgages are typically given to encourage economic development in depressed regions. These low-interest-rate home loans are offered through the Rural Housing Service (RHS), a branch of the US Department of Agriculture. They are specifically tailored to low and moderate income persons who live in rural areas or small towns . It has 30-year term. USDA Guaranty Fee required on all loans. Property location must meet USDA standards Income and loan amount limits.

Advantages: 100% financing available with fixed interest rates. They require no down payment.

Disadvantages: They are restricted to individuals who live in small towns or rural areas.