RHS Loan Program

What Is An RHS Loan?

Rural House Service (RHS) loans are for housing and community facilities in rural areas. The United States Department of Agriculture (USDA) created this loan program to strengthen the communities of rural areas. Besides housing, RHS loans can be used for community facilities like childcare centers, libraries, schools, hospitals, and nursing homes, among others.

A common RHS loan program is the Single-Family Housing Direct Home Loan for low-income or very-low-income families. Benefits for these families that qualify for this program include:

  • There is no down payment required (usually)
  • Your interest rates are fixed at the current market rates at loan approval or closing (whichever is lowest)
  • Interest rates as low as 1% when modified by payment assistance

Some of the ways funds can be used

  • For existing properties or new permanent residence homes
  • Any repairs or rehabilitation needed when the home is purchased
  • Necessary household features such as carpeting, ovens, refrigerators, etc.
  • Features or installed equipment to assist occupants with a physical disability
  • Connection fees for utilities such as water, sewer, electricity, and gas
  • Installing equipment for broadband service access in the house
  • Refinancing loans that are eligible
  • Adding energy-efficient features

Guaranteed Home Loans

The Single-Family Housing Guaranteed Loan Program gives a 90% loan guarantee for RHS-approved lenders, like Financial Concepts Mortgage. Because this high percentage guarantee reduces so much risk, RHS-approved lenders like Financial Concepts Mortgage can offer 100% for qualified rural homebuyers. This helps homeowners in these rural areas have primary residences that are decent, safe, and sanitary.


The eligibility requirements for an RHS loan such as income or area eligibility is going to be different from county to county. But, these applications and property requirements listed below will help you understand if you may be eligible for an RHS loan.

Application requirements

  • Unable to get a loan from other sources with reasonable terms and conditions
  • No current, adequate, safe, and sanitary housing in your primary residence
  • Must agree that you will occupy the home property as your residence
  • Able to participate in federal loan programs without previous disqualifications
  • Meet citizenship or non-eligible citizenship requirements
  • Must have the legal power to assume an RHS loan obligation
  • Must show a willingness to meet monthly credit responsibilities


Property requirements

  • Property can’t be bigger than around 2,000 square feet
  • Market value must not exceed the RHS-eligible area loan limit
  • Property can’t have an in-ground swimming pool
  • Property can’t be planned for income-producing activities

We’re Here to Help

Main Number: (405) 722-5626
Email: info@fcmortgageloans.com

Here at Financial Concepts Mortgage, we believe in offering a variety of loan types to make sure you get what you need. If an RHS loan doesn’t seem right for you, we can help you find the loan options that are most beneficial for your situation. It can be difficult to understand the differences between the many home loan types; we are here to answer any question you may have.

Although we primarily serve homebuyers in Oklahoma, we are also able to provide loans to anyone in Texas and Arkansas.