Rural Housing Loans are all the rage in my neck of the woods because we have enough rural areas that qualify.  Sponsored by the USDA, the loans are 100 percent loans that waive the monthly mortgage insurance.  To be eligible, you’ll still need to meet credit score requirements.  In addition, the home you purchase must be owner-occupied, no in-ground swimming pools are allowed, and if you’ve filed for bankruptcy, that has to be discharged for 36 months.

There are some income limits - specifically for a one to four person home, the income is limited to $74,600.  For a home with five to eight people, you can’t earn more than $98,450.

For a new construction Rural Housing loan, the requirements vary.  For example, the builder must provide at least a one-year builders warranty, certification is required for both plan/thermal and septic/step system systems, a soil treatment letter is required.  For full details, you can contact a qualified lender in your area.

Additionally, you can visit the USDA web site here for more info.  Here’s a nifty map that shows homes currently for sale (though I didn’t find any in my area) that would qualify for Rural Housing loans.