Tulsa Rural Development Loans

United States Department of Agriculture (USDA) Rural Development operates a number of financial assistance programs intended to improve the economy and quality of life in rural communities across the country. This includes USDA Rural Development home loans which are mortgages either offered or guaranteed by the USDA. These mortgage programs were established to provide families with the opportunity to own decent homes that are both sanitary and safe. 1st Capital Mortgage, LLC offers the best rates and terms on Tulsa Rural Development loans to the many local families who qualify for the program.

The USDA offers both direct and guaranteed home loans to Oklahoma residents. The USDA Single Family Housing Guaranteed Loan Program is designed specifically for low to moderate-income families. With this particular program, the USDA guarantees a portion of the mortgage that is offered by an approved lender. USDA Single Family Housing Direct Home Loans are similar however they are made directly by the government. This program is available to both low and very-low income households. The direct loan program from the USDA is also known as the Section 502 Direct Loan Program.

Tulsa USDA Rural Development Single Family Housing Guaranteed Loan Program

The USDA Single Family Housing Guaranteed Loan Program makes it possible for low to moderate-income families to purchase, build, or rehabilitate an affordable home. Tulsa Rural Development loans guaranteed by the USDA provide borrowers with 100 percent financing, low interest rates, and allow closing costs to be financed into the loan. Both the applicants and home being purchased must meet certain requirements in order to qualify for the USDA Guaranteed Loan Program.

  • Household income must be less than or equal to 115 percent of the median income for the area.
  • The home must be used as the family’s primary residence.
  • The home must be located in an eligible Tulsa Rural Development area and must meet all program criteria.
  • Borrowers must have an acceptable credit history and be able to afford the mortgage payments, taxes, and mortgage insurance.

USDA guaranteed loans require that the borrower pay mortgage insurance. An upfront fee of 2.75 percent of the purchase price and a monthly premium of .5 percent of annual balance are both required.

Tulsa USDA Rural Development Single Family Housing Direct Home Loans

The USDA Direct Loan Program offers payment assistance in the form of a subsidy to low and very-low income families who are without safe and sanitary housing and who are unable to obtain traditional financing. Low income is defined as being between 50 and 80 percent of the area median income (AMI). Very-low is considered to be below 50 percent of the AMI. As with the Guaranteed Loan Program, applicants and the property being purchased must meet certain requirements.

  • Applicants must be without safe and sanitary housing, unable to obtain a loan from other resources, and meet specific income requirements.
  • The home must be used as the family’s primary residence.
  • The home must be located in an eligible Tulsa Rural Development area. It must be 2,000 square feet or less, not have a market value in excess of the applicable area loan limit, and not have an in-ground pool.
  • When a borrower no longer occupies the home or the title is transferred, they must repay all or a portion the subsidy.

Direct and guaranteed Tulsa USDA loans can create opportunities for families to own decent homes when other means of financing are difficult to obtain. At 1st Capital Mortgage, LLC, it is our goal to make homeownership a reality for all families. For more information on Tulsa Rural Development loans, contact us today.