USDA Rural Development Options in Wisconsin
Wisconsin residents: If you're looking to take the plunge into home-ownership and have a property in a rural area in mind, there may be a USDA Rural Development loan available to make this dream come true.
The Benefits of Home-Ownership
Maybe you have an independent spirit, and want to take on the world on your own. Getting out into the world as an adult is only one benefit of owning your own home. Here are some more:
- Homes are a good investment--the kind that makes you money over time. Buying a home while you're young gives you more time to watch its value grow.
- Being a homeowner gives you more borrowing power. Banks and other lenders will open up more lines of credit to you.
- You can claim more in tax deductions if you're paying a mortgage--so enjoy that money back after tax season!
Wisconsin's Rural Areas
Why would you want to set down roots in one of Wisconsin's rural areas?
- City life is stressful! Research suggests that urban dwellers have higher instances of depression, anxiety, and other psychological issues.
- Make the most of your property--enjoy a large backyard or a garden. You'll have the space, not to mention peace and quiet!
- Cost of living--including the price you will pay to purchase the property--is lower in rural areas than in urban or suburban ones.
If you know you're looking to buy a home in a rural area, below are some resources that may help you.
USDA Rural Development in Wisconsin
The Wisconsin branch of the USDA Rural Development Department is focused on revitalizing rural areas through more first-time home-ownership, as well as providing assistance to current homeowners in rural areas who need assistance maintaining their homes.
This state office has several options that can easily take you from a month-by-month tenant to a proud homeowner:
- Guaranteed Loans for Single Families
- Direct Loans to Single Families
Let's take these options one-by-one to see if they work for you.
Single Family Guaranteed Loans
This USDA Rural Development program is aimed at getting folks from the moderate income bracket into home ownership. The loan must be used to finance a home in an eligible rural area. No down payment is required. The loan can also be used to cover cost of repairs to a property, as well as cost incurred in closing the house. This loan will result in a 30-year fixed-rate mortgage.
Eligibility Requirements:
- Regular, dependable income
- U.S. citizenship, or legal resident status
- Income that falls in the moderate bracket in the area the property is located.
- Ability to demonstrate plan for repayment of the loan
The Property Must:
- Be located in a qualified rural area
- Meet HUD guidelines
- NOT be producing other income
- Be a home which resides on a permanent foundation
- Be occupied by the owner
Single Family Direct Loans
This is the right program for you if you're looking to purchase or construct a new home. This loan can also be used to finance home repairs or reconstruction. This subsidized loan can be used to make a down payment on a home. It may also be applied to make home improvements or repairs.
There is one stipulation: You may only apply for this loan if you are unable to obtain credit from any other lender.
You should anticipate a repayment period of about 33 years.
Eligibility Requirements:
- The family income must not be in the 80th (or higher) percentile of income (in the county in which the new property is located.)
- U.S. citizenship, or legal resident status
- You must have a good credit history, and be able to document this during the application process
- More details here
Other Resources
So stop losing money on rent and make that dream of owning your own home come true!
