Rural Development is a division of USDA (United States Department of Agriculture). Rural Development loans were established to allow individuals and families to own a home in rural areas across America. We are lucky enough to have large areas of eligibility in Ascension Parish, Livingston Parish, West Baton Rouge Parish, and even regions within East Baton Rouge Parish.
Eligibility for these loans is based on income and varies according to the average median income for each area. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers – so no money down for those who qualify! Did you catch that? There is NO DOWNPAYMENT! If you qualify, you can borrow 100% of the sales price of your home.
Rural Development Loan Qualifications for Louisiana
- Meet income-eligibility (cannot exceed 115% of median household income) As of July 2019, Income Limits for most Parishes are; 1-4 People in household: $86,850. 5-8+ People in household: $114,650. Use the USDA Income Eligibility tool to verify your income limit.
- Agree to occupy the dwelling as their primary residence personally
- Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
What Is An Eligible Rural Area?
Currently, the Parishes surrounding East Baton Rouge Parish are all eligible for USDA or Rural Development loans. Eligibility areas do change, so we recommend you check the USDA’s Eligibility Site to make sure you are searching for homes in the areas currently eligible.
Homes That Don’t Qualify
Just because a home is located within an eligible area doesn’t mean it will qualify for Rural Development financing. Here are a few things to steer clear of if you are trying to qualify for a USDA Mortgage.
- Homes with In-ground Swimming Pools
- Homes with no stoves or other built in appliances
- Homes without adequate heating and cooling systems
- Homes with no or sub-par flooring
How Do I Apply For A Rural Development Loan?
Applying for a USDA or Rural Development loan is easy. Contact your local lender and first ask if they are approved Rural Development Lenders. If they are, they will take over and guide you along the process. (Most lenders in our area are approved since this product is widely used here.)
If for some reason they are not, let us know and we will set you up with a couple of fabulous lenders for you to interview.