USDA has also structured their loan for secondary market acceptance.

“This gives us confidence to market this loan program to our customers knowing that USDA is standing behind the guarantee. “Of course, one of the biggest benefits that attracts us to the program is the fact that these loans are guaranteed at closing, even before construction begins,” Willing said. Chief Operating Officer Joe Willing highlights many of the program’s benefits. This program can help support housing construction in rural areas throughout the country.įor example, USDA recently partnered with 1 st Signature Lending, based in Indiana, to help people build homes financed through the Combination Construction-to-Permanent Loan Program. This program streamlines the lending process and saves money for homebuyers because they pay closing costs on one loan instead of on a construction loan and a permanent loan. Through USDA Rural Development’s Combination Construction-to-Permanent Loan Program (PDF, 158 KB), USDA-approved lenders with experience in construction loans can help borrowers who want to build a home.

USDA Rural Development and its lending partners have affordable financing options for homebuyers who are considering building their dream home. Boosting the housing supply is crucial to bringing homeownership within reach for millions of Americans.