August 25, 2022
A VA Rural Home Loan is a great option for veterans wanting to buy or refinance a home in a rural area. If the sound of this program has caught your interest, then the Farm Loan Center can help you find out if you qualify and provide counseling one the next steps if you do. We are experts in rural loans and specialize in helping veterans secure loans through the Veterans Administration.
If you’ve completed your years of service and now want to settle down in a rural area, a VA rural home loan will guarantee or insure financing to purchase a primary home for you and your family. The technical details of this loan are as follows:
- No down payment with 100% financing
- Competitive low interest rates
- The seller is allowed to pay the closing costs
- No limit on VA loans
- VA funding fee applies (though this can be waived)
- Credit scores of 600+
- Higher limit on debt ratios
Veterans with a VA related disability of 10% or more applying for a VA rural home loan can have the funding fee that is charged to non-disabled veterans waived. This fee can also be waived for surviving spouses of veterans who died in service or from a disability connected to their service. Additionally, purple heart recipients also qualify for this exemption.
Applicants with a credit score of less than 600 can still be eligible for VA farm loans provided their credit score is over 580 and they provide a 10% down payment and 3 months reserves.
Veterans are eligible to refinance for a lower rate when the market improves by using a VA Streamline Refinance after 210 days from the date of the last loan. This type of VA rural home loan requires no appraisal and no income documentation. They would only need to be current on their mortgage and have acceptable credit scores. VA funding fee is reduced to .50% unless they are exempt due to VA disability rating.
Whether you’re looking to settle down in a rural area in the midwest in Kansas or Nebraska, or on the coast in California or North Carolina, Farm Loan Center wants to help. Call us at (800) 644-9039 to begin counseling or apply online now.