USDA Rural Development Homebuying
Qualification and Process
Under the U.S. Department of Agriculture (USDA) Rural Development Section 523 Mutual Self-Help Housing Program, very low to low-income borrowers work together under Homes In Partnership, Inc. guidance to build each others’ homes. With a construction supervisor on site, groups perform construction work required (known as “sweat equity”) to build the homes. USDA offers 100% financing closing costs can be included in the loan and has mortgage payment assistance throughout the life of the loan for those who qualify.
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 and have filed 2 years of tax returns if employed
- Conform to the minimum and maximum Income Guidelines depending on family size and location. Click here to check the income limits for your area: https://www.rd.usda.gov/sites/default/files/RD-DirectLimitMap.pdf
- Willing to participate in certain aspects of construction of your home and others
- Attend homebuyer’s workshop and meetings
- USDA requires homes to be in rural areas. Click here for property eligibility information: https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do Click on Single Family Housing Direct then Property Eligibiltiy then type the address you wish to purchase.
- The home you will purchase must be your primary residence not owning another home