A lot’s been written in recent years of the population growth in cities across the U.S., but not everyone lives in an urban environment, so Faith Scwartz, of CoreLogic, compiled an overview of rural housing finance programs.
The rural sector of the country varies depending on whose definition you use, but for general purposes, it is about 80% of all land area and about 20% of the population.
The U.S. Department of Agriculture (USDA) and the Department of Housing and Urban Development (HUD) both have products that can be and are packaged into Ginnie Mae’s: Rural Housing Service Section 502 direct and guaranteed mortgage (a program of the Rural Development arm of USDA), and the HUD Section 184 mortgage program targeted to American Indians, half of whom live on remote rural reservations or Indian service areas (Alaska and Oklahoma have large Native populations, but no reservations). Both Fannie Mae and Freddie Mac also participate in the securitizing and purchase of loans from these programs.
To read up on additional rural housing finance programs, click below.