How to Get an RHS Mortgage

The U.S. Department of Agriculture (USDA) oversees several types of government home loans, which include the Federal Housing Association (FHA), Veteran's Affairs (VA) and Rural Housing Service (RHS) loans. Theses government home loans help people in rural areas become home owners. The USDA acts as the lender on many RHS Mortgages.

Instructions

1. Find out if you live in an area that qualifies for USDA government home loans. Some large towns may qualify as rural areas. Check with your state's Rural Development State Office, which provides information on programs, qualifications and applications specific to your area.

2. Meet the income qualifications for an RHS Mortgage. The government began the RHS program to help low- and mid-income individuals with housing needs. Qualifying applicants must be below the area family median income level, but able to pay the RHS mortgage, insurance and taxes.

3. Find out your credit score. All lenders require adequate credit to approve you for any loan. The credit score lenders consider adequate varies by lender. With an RHS mortgage, you can't qualify for other types of government home loans or conventional loans.

4. Apply for a RHS Mortgage. Once you meet the qualifications, get an application and provide the required documentation. You'll need to include your latest pay stubs, show proof of employment for at least 6 months and submit your last filing for taxes.

Resources

• Get information on the area family median income at HUD User.
• Find Rural Development State Offices at the USDA.