USDA First Time Homebuyer Barndominium Loans
Reader AMBER in INGRAM writes:
“Can these be purchased in conjunction with land under the USDA1st time homebuyer loan? I know mobile home companies do so I was unsure if y’all could.”
I reached out to Amanda (Hansen Pole Buildings’ financing wizardress) who advised none of our lenders do USDA loans, so we are unable to provide a definite answer for you. Your best bet would be to contact your local USDA approved lender.
For 80 years, United States Department of Agriculture (USDA) has been at the forefront of developing rural America.
On April 30, 1935, President Franklin D. Roosevelt signed Executive Order 7027 establishing Resettlement Administration (what we know today as USDA Rural Development). During the Great Depression, this Administration provided aid to destitute families by helping them relocate. They also restored soil to eroded areas and issued emergency loans to farmers.
Over time, congress continued to expand the Resettlement Administration’s role. On October 13, 1994, congress reorganized the Resettlement Administration under Federal Crop Insurance Reform and Department of Agriculture Reorganization Act. Under this Act, USDA Rural Development Department was created to administer USDA Home Loan Program for rural housing https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-guaranteed-loan-program.
USDA Home Loan Program has American roots back to Great Depression days and is 100% committed to helping improve Rural American’s quality of life. Since its inception, this organization has been helping people live better and still is to this day by continuing to offer you USDA Home Loans.
What does this program do?
Section 502 Guaranteed Loan Program assists approved lenders in providing low- and moderate-income households an opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may purchase, build, rehabilitate, improve or relocate a dwelling in an eligible rural area with 100% financing. This program provides a 90% loan note guarantee to approved lenders in order to reduce risks of extending 100% loans to eligible rural home buyers – so no money down for those who qualify!
Who may apply for this program?
Meet income-eligibility (cannot exceed 115% of median household income)
Agree to personally occupy dwelling as their primary residence
Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
What is an eligible rural area?
Utilizing this USDA’s Eligibility Site you can enter a specific address for determination or just search the map to review general eligible areas.
Why does Rural Development do this?
This program helps lenders work with low- and moderate-income households living in rural areas to make homeownership a reality. Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves quality of life in rural areas.