What is the maximum LTV on a rural development loan?

In the context of rural development loans, the maximum loan-to-value (LTV) ratio is set at 100%. This means that borrowers can finance the entire purchase price of the home without the need for a down payment, making it an attractive option for those looking to buy in rural areas. The primary aim of rural development loans is to provide financial assistance to low- and moderate-income individuals or families who may have limited access to traditional mortgage financing. By allowing for a 100% LTV, these loans help to promote homeownership among populations that might struggle to save for a down payment, ultimately contributing to the development and sustainability of rural communities.

This unique feature distinguishes rural development loans from many conventional mortgage products, which often require some level of down payment and may have lower maximum LTV ratios.