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USDA Home Loans De-Mystified - Part 1



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I receive numerous questions about the USDA Rural Home Loan program so I would like to answer the most common questions relating to the USDA Rural Home program.  I will answer a question every couple days until you have all the answers.

Question - There are several programs for buyers can you please explain the difference?

Answer - The two programs include the direct home loan program and the guaranteed loan program.  The direct loan program is administered by the local USDA office and will lend money directly to the home buyer.  The guaranteed loan program is a program that is administered by a local bank in conjunction with USDA.  The bank makes the loan to the home buyer and USDA guarantees the loan in the event of default.

To secure a direct loan you need to call the local USDA office at 570-726-3196.  Numerous local banks can underwrite the guaranteed loan and you can give me a call for those local banks that participate in the program.

For more information about first time home buyer programs or affordable housing alternatives in Centre County or the State College, Bellefonte, Penns Valley, Bald Eagle or the Philipsburg school districts give me a call or tune into Top Gun Tim's Real Estate Radio show every saturday morning on 970 A.M. WBLF radio.  Call the show from 8:00 to 9:00 am on the Coaches Corner hotline at 814-272-9700

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