What type of mortgage allows a borrower to purchase a home with little or no money down in rural areas?

The Rural Housing Service Loan is specifically designed to assist low- to moderate-income borrowers in purchasing homes in designated rural areas. This type of mortgage allows for little to no down payment, making it an accessible option for individuals who may not have substantial savings. The program supports homeownership in rural communities, thereby promoting economic growth in those areas.

While other loan types, such as FHA and VA loans, do offer low down payment options, the Rural Housing Service Loan is unique in its specific focus on rural properties, aiming to enhance living conditions and foster development in less populated regions. This makes it particularly suitable for borrowers looking to buy homes in rural settings with minimal upfront costs.