Need A Mortgage... Have You Tried the U.S. Department of Agriculture?

That's right! If you're in need of a loan the USDA (U.S. Department of Agriculture) has a program that may help.

With lending standards so tight that even buyers who can afford their mortgage can't seem to get approved, many buyers and home builders are turning to a 1991 homeownership program created by the USDA to promote rural growth.

The USDA's Rural Development Guaranteed Loan program has become increasingly popular as of late, with buyers utilizing the program to get approved for a loan when other lenders couldn't accomodate them. It didn't take builders long to realize that this home loan program would also be a great way to help approve buyers for their new homes.

According to a recent article published by the Wall Street Journal, "volume has nearly doubled for these USDA-backed loans. The department insured $7 billion in loans during the 2008 fiscal year, which ended in Sept. 30, up from $3.6 billion the previous year. In October and November, the agency has already insured some $1.7 billion in loans."

Of course this doesn't compare to larger agencies, i.e. the Federal Housing Administration, which guaranteed $102 billion in new loans during fiscal 2008.

To get approved for a USDA-backed loan, you cannot have income that exceeds 115% of the median county income, and the loans are restricted to areas with low population density - which means towns of 25,000 residents or less.