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Rural Housing Single Family Guaranteed Loans (USDA) in Wisconsin and Illinois

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USDA home loans have been helping rural Americans become homeowners since 1949. It has invested well over $54 billion in helping people purchase their own homes.

Owning your own home is a part of the American dream, but in rural areas, financing a home can be difficult. Jobs often pay less than in more populated areas, making it harder to obtain credit. Also, rural lenders generally require a large down payment, and often, interest rates and construction costs are higher than in urban areas. However, if you want to own a home in a rural area*, the U.S. Department of Agriculture (USDA) Rural Development may be able to help.

The Guaranteed Rural Housing program agrees to guarantee a loan so the lending institutions can help buyers while incurring less risk.


You don't have to live out in the country to qualify for a
Rural Housing USDA home loan!
Rural Housing program highlights:
  • Moderate income limits apply - based on family size
  • No down payment required.
  • 102% Financing (no money down) plus closings cost and prepaids and lender required repairs can be rolled in up to the
    property's appraised value!
  • No Prepayment Penalties.
  • No Private Mortgage Insurance required.
  • A one-time guarantee fee is paid at closing. In some cases, this fee, closing
    costs and repairs may be included in the loan.
  • Competitive 30 year fixed interest rates.
  • No maximum loan amount. Loan amount may be made up to the
    property’s appraised value.
  • No limits on cash contributions.
  • Not restricted to first time home buyers
  • Home must be occupied as your permanent residence.

2009 income limits have been updated (04/20/2009) and can be viewed from the links below:

See if your income qualifies for a rural housing loan

Wisconsin Income Qualification Information:

A PDF of Wisconsin Income Limits will give you the county by county breakdown by family size. You can also use the USDA Income Calculator to calculate income is more accurate because it is based on area income limit minus any deduction you can take to offset your income. The most common income deduction is for child care expenses.

Wisconsin Ineligible Areas for Rural Housing Loans:

First, you can view this PDF which is a map of Wisconsin. The counties in white are 100% eligible. The counties shaded green have ineligible areas within the county, except for Milwaukee County which is 100% ineligible. If you are looking for a property in Dane County, you will want to know the area’s that are eligible. Open up the PDF map of Wisconsin and click on Dane county. That is going to bring up a PDF map of part of Dane County. The areas shaded in green on the county specific map are ineligible. You can zoom in on the map for a detailed look of the ineligible area. One side of a street or road may be eligible and the other side not.

Secondly, if you know the address of a property that you are interested in, you can go to USDA's website to determine if a specific address is eligible (click the accept button and then type in the address). If the system is unable to determine eligibility based on the address you entered, that doesn’t mean it isn’t eligible. It just means the system couldn’t find the address, so it is unable to determine eligibility. At this point, you can either call/email us and we will help in determining if the property is eligible or you could search the address with MapQuest or Google maps to figure out where the address is and then go back to the Wisconsin PDF map, click the county the property is located and zoom in to find the street to determine eligibility.

Sometimes it is just a matter of entering the correct format of the street to get the system to find the property (what I call HWY M in Evansville is really County Road M according to the system…).

Illinois Income limits and Ineligible Areas:

Illinois Ineligible Areas for Rural Housing Loans Accept disclaimer, either type address in or click on the state of Illinois, counties listed to the right have ineligible areas. Click on the county you are looking up for a more detailed map. Only Lake, DuPage and Cook counties are 100% INELIGIBLE.
Illinois Income Limits for Rural Housing Loans     PDF file

Additional Information on our blog:
Are USDA Rural Housing loans only for "Farmers"?

Other programs that may be of interest:
FHA Loans
VA Home Loans
100% Financing Programs



All Wisconsin and Illinois Mortgage Programs
100% Financing (No Money Down) Programs
First Time Home Buyer Mortgage Programs
My Community Mortgage
Government Loans including FHA, VA and Rural Housing
Wisconsin Refinance Illinois Refinance Programs

Current Wisconsin and Illinois Rural Housing Mortgage Rates
About Us
Apply or Pre-qualify Online
Contact Us

* Rural areas consist of communities that have 20,000 and under in population and are not a part of an urban area.

 

Recent Rural Housing mortgage posts on our blog:

USDA Rural Housing in Wisconsin: No Money Down
December 18, 2009

Today I thought I would address some questions that I hear a number of times each week. ”What is the Rural Housing program?” and “Do I have to buy a farm house?” Wisconsin's USDA Rural Housing program is about helping people purchase a home in any of the smaller communities throughout the state.

We will be discussing the Guaranteed Rural Housing program. The Guaranteed program is for low to moderate income applicants to purchase a primary residence in a “rural” area of the state. These mortgages are processed, underwritten and serviced by a bank or lender with certain “guarantees” from the USDA.

Read the rest of this entry »

 

No Money Down Mortgage
November 22, 2009

If you want a home mortgage loan, and want to see if it's possible to get a no money down mortgage loan, our professional and knowledgeable staff can help guide you through the decision making process, and educate you about your options for a Chicago or any city in Illinois no money down mortgage loan.

Your Illinois and Wisconsin no money down mortgage banker. Contact us for questions or additional information.

Read the rest of this entry »
 

No Money Down: VA, Rural, and FHA Loans
September 5, 2009

How to Buy a Home in Wisconsin with Little or No Money Down

Of course you want to buy a home in Wisconsin with no down payment. Who doesn’t?

Here’s how you do it:

Many people never buy the home of their dreams simply because they don't think they have enough money for the down payment. They have been told through the years that they need 10% or 20% of the purchase price in order to buy a home. Well, this is true for the conventional/conforming loan programs but not for Wisconsin Government loans.

So why have so many Lenders told them this?

It’s because selling homes to people with 10% or 20% down is easier than selling homes to people who have little or no money for a down payment. Most mortgage loan officers would rather go after the "easy sale" than try to help people who would rather save the down payment money for a rainy day or for current and future repairs/upgrades.

Read the rest of this entry »
 

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