Who is most likely to use a Rural Development (RD) loan to purchase property?

The Rural Development (RD) loan program is specifically designed to support homebuyers in rural areas, particularly those with low to moderate incomes. These loans aim to assist individuals who may not qualify for conventional financing, thereby enabling them to buy safe and affordable homes in rural communities.

A person with low to moderate income seeking to purchase a single-family home aligns perfectly with the target demographic for RD loans. These loans offer benefits such as no down payment and competitive interest rates, which cater to individuals and families who may need assistance in achieving homeownership.

In contrast, individuals with a higher income, like the person earning $125,000 annually, generally have more financial options available and may not need to utilize the RD loan program. Similarly, investors purchasing rental properties typically do not qualify for these loans, as the primary focus of the RD program is to promote homeownership for residents rather than investment properties.