Rural Housing Service (RHS) Explained

The Rural Housing Service (RHS) is a department of agriculture entity in the United States (USDA). Within the Rural Development mission area of the Department.

RHS offers a variety of services to low-income and very-low-income Americans in rural areas, including:

• Individuals have access to house ownership choices such as direct home loans and mortgage guarantees.
• Funding for housing renovation and preservation.
• Nonprofits that establish self-help housing services in rural communities are eligible for grants.
• Tenants of RHS-funded multi-family housing complexes receive rental assistance.
• Housing for farm laborers.
• Developers of multi-family housing projects, such as supported housing for the elderly and disabled or apartment complexes, are eligible for assistance.
• Nonprofit organizations, communities, and local governments get community amenities such as libraries, child care centers, schools, municipal buildings, veterans shelters, and firefighting equipment.

RHS Process

The USDA’s RHS offers a variety of loan programs, each with its own set of restrictions for applicants and lenders. 3 Single-family direct housing loans are aimed to assist low- to very-low-income borrowers in obtaining safe, sanitary, and decent housing that they would not be able to obtain on their own. Borrowers who wish to buy a home but are unable to obtain a regular mortgage due to low income or a poor credit history may be better off applying for an RHS single-family direct home loan.

Rural Housing Service low income USDA loan Summary

The Rural Housing Service (RHS) offers low-income borrowers in rural regions with direct loans and guarantees loans from certified lenders. A low income USDA loan can assist a borrower who would otherwise be unable to obtain a regular mortgage due to low income or bad credit in purchasing a home in a rural location.

The RHS also gives loans to rural towns for services like schools, police stations, and fire stations.

If you have any other questions regarding the RHS contact the mortgage experts at 864-397-8500 or click Mortgage Rates Today!