Farm Bureau Mortgage offers members USDA home loans for just under 0%

Today’s housing market

With its pivot to remote working and historically low interest rates, the COVID-19 pandemic has generated an exodus of people from urban areas to suburbs and rural regions. Anxious buyers quickly snapped up properties, leaving high demand and little to no supply. The resulting high house prices have contributed to an affordability crisis in much of the country and particularly in rural areas.

With inflation now at its highest level in 40 years, the Federal Reserve has implemented a series of interest rate hikes – three so far and four more on the horizon – to combat the inflation and curb demand in the booming real estate sector. Those who waited to buy a property now face a higher cost of entry with higher interest rates leading to higher monthly mortgage payments. However, alongside rising rates, there are signs that the housing market is beginning to cool, with most economists predicting normalization in the coming months.

USDA loans for rural dwellers and farmers

Living in a rural area, you know that cost can be a barrier to entry when it comes to owning a property. However, there are special USDA programs that provide clear pathways to rural homeownership, helping to create thriving communities for future generations.

These USDA secured loans are available through Farm Bureau Mortgage for qualified borrowers purchasing property in rural areas or small towns. With the Single Family Home Secured Loan Program, loans are available with low interest rates and down payments as low as 0%. Available to low-to-moderate income people looking for a new primary residence, applicants can buy, build, rehabilitate, improve or relocate a home in an eligible area with 100% financing.

Other benefits of the USDA Single Family Home Secured Loan Program include:

  • More money available in advance – loan fees and closing costs are built into the loan, so you have more money when it matters most
  • Grants can be used – if you receive a gift fund or are eligible for a grant, the funds can be applied to the loan

“The USDA encourages Approved Lenders to partner with low- and middle-income families in eligible rural areas to make home ownership a reality. This in turn promotes prosperity, creates thriving communities and improves the quality of rural life,” said Farm Bureau Mortgage President Dominick Deorio.

To find out if you live in an eligible rural area, visit the USDA Eligibility site.

This article was provided to the American Farm Bureau Federation by Farm Bureau Mortgage.

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