USDA Rural Development Homebuying
Qualification and Process
U.S. Department of Agriculture (USDA) Section 523 Mutual Self-Help Housing program, low-income borrowers work together under Homes In Partnership, Inc. guidance to build each others’ homes. With a construction supervisor on site, these building groups perform construction work required (known as “sweat equity”) to build their homes.
Applicants are required to meet several qualifications to ensure success. Each prospective homeowners must:
- Must be US citizen or Legal resident
- Overall credit history should demonstrate ability and willingness to repay obligations
- Must have a 2 years work history with filed tax returns
- Minimum and Maximum Income Guidelines depending on family size and location
- Willing to participate in certain aspects of construction of your home
- Attend homebuyer’s workshop and meetings
- USDA requires homes to be in rural areas
- The home you will purchase must be your primary residence not owning another home