USDA Rural Development Loans
USDA RD Loans in NH
Do you want to live in a quiet town where there is a little space between you and your neighbor? The U.S. Department of Agriculture Rural Development Guaranteed Housing Loan program (USDA RD) may be the perfect solution.
Many home buyers have never heard of the USDA RD program because so many lenders don’t offer the program. This program has served only a fraction of the U.S. home buying market because it’s not intended for big cities and other densely populated areas. But in NH, the program covers most of the state, except in a dozen or so larger cities and towns. Learn which towns qualify for USDA Rural Development here.
This is one of the best first-time home buyer programs ever, and possibly the best deal for you if you're buying a home in a rural or small-town setting.
Here’s why:
- It offers 100% financing: No down payment is required.
- The monthly mortgage insurance is cheap.
- It’s government backed, so the interest rate is low.
- Closing costs are standardized (the seller can pay the closing costs).
- There are no reserves required.
- It’s a 30-year fixed-rate program.
- There are no restrictions on gift funds.
- Nontraditional credit histories are considered.
- Blemished credit is often workable.
- New or existing construction is acceptable.
- It’s not limited to first-time home buyers.
- There are never any prepayment penalties.
There are some statements made about the USDA RD program that are not true
Myth: The income limits for an RD loan are very low.
Truth: The total household income limits cannot exceed the “moderate income established for the area,” but those limits often exceed $100,000 in New Hampshire. The base USDA income limits for a family of 1-4 are:
- 1-4 member household: $ 98,350
- 5 + member household: $129,800
Income limits will vary by town and MSA but here is a list of New Hampshire counties with their respective income limits for a rough idea:
| County | 1 - 4 person | 5+ persons | ||
| BELKNAP | $99,900 | $131,850 | ||
| CARROLL | $99,900 | $131,850 | ||
| CHESHIRE | $99,900 | $131,850 | ||
| COOS | $99,900 | $131,850 | ||
| GRAFTON | $101,900 | $134,850 | ||
| HILLSBOROUGH | $103,150 | $136,150 | ||
| MERRIMACK | $106,600 | $133,400 | ||
| ROCKINGHAM | $108,550 | $143,300 | ||
| SULLIVAN | $99,900 | $131,850 | ||
Myth: RD is very fussy about the condition of the home.
Truth: RD’s property standards are not meaningfully different from those of most other government loan programs. Still, RD does have a few peculiarities. For instance, the program will not finance luxury items like pools or spas.
Please contact Charley at (603) 471-9300 or send an email if you would like to learn more about RD Loans.
Your information will be kept completely private.
We have originated more than half a billion dollars of real estate loans to thousands of NH property owners and are happy to share our experience and expertise with you.
