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This program, formally known as Section 502, is now commonly called a Rural Housing Loan. This low-income housing loan is meant to reach "low-to-moderate-income homebuyers," and that includes people living in suburban and small-towns as well. USDA rural development loans are specifically for low-to-medium income families.
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For low-income borrowers afraid that even this low down payment requirement will prevent them from owning a home, there is help. The FHA loan allows sellers to give buyers a credit up to 6 percent.
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