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 | USDA RURAL
DEVELOPMENT LOANS
100% FINANCING |  | | What types of financing does USDA Rural Development financing offer?
Rural Development offers two separate home ownership programs.
GUARANTEED FINANCING • 100% Financing
• Competitive Fixed 30 year rates
• Recently expanded income limits
• No maximum sales price or loan amount
• Clients work with traditional mortgage lenders
• No monthly mortgage insurance. Commonly referred to as MIP or PMI.
• Normal purchase to closing processing time.
• Home will be inspected and appraised by a local HUD approved appraiser.
Typically, USDA Rural Development financing requirements are more flexible
than FHA/VA. HVCC appraisal process is not required. DIRECT LOAN FINANCING • 100% Financing
• Competitive fixed rates---33-38 yr. loan terms
• Clients work direct with local USDA Rural Development office to obtain loan.
• Maximum purchase price limits vary depending on the county
• Lower income limits compared to the Guaranteed program
• Purchase to closing processing time MAY be longer
• SOME BORROWERS MAY QUALIFY FOR SUBSIDIZED PAYMENTS.
If this applies borrowers could be subject to re-capture upon selling of the home.
• Home will be inspected and repairs may be necessary to place home in required condition. Cost for repairs may be rolled into the loan. 100% USDA Rural Development Home Loans
• The demand for USDA HOME MORTGAGES have exploded over the last couple of years. Millions of borrowers who reside in rural areas are potentially eligible for USDA Rural Development 100% financing. USDA RD Home Loans presently are the only option for 100% financing unless you are a military veteran.
• USDA HOME LOANS are offered with no monthly mortgage insurance add-on which increases the monthly mortgage payment. FHA and privately insured conventional financing normally requires a monthly mortgage insurance premium (commonly referred to as MIP or PMI). A single one time guarantee fee is charged up front on a USDA Rural Development Home Loan which may be added to the loan amount extending the LTV (loan to value) to 103.5% of the sales price.
• A USDA HOME MORTGAGE will also allow closing costs and prepaid costs to be added to the loan amount if the house appraises for an amount greater than the sales price. This is unique in that other types of financing base their maximum allowed LTV (loan to value) on the sales price or appraised value whichever is less.
• USDA RD HOME LOANS may be used to purchase a new or existing single family home in most rural areas where a market does exists for housing.
• USDA HOME MORTGAGES are all fixed rate loans. The P&I (principle & interest) will not change over the life of the loan. This removes any unknown surprises or concerns with payment increases as is found in other types of mortgages.
• USDA RD Home Loans are not only for first time homebuyers. Borrowers must intend to occupy the home as their permanent residence. Condo’s, Townhomes, and single family homes may qualify for USDA Rural Development home financing.
• USDA Home Loans do not require perfect credit. A minimum 620 credit score may apply.
• RD Home Loans do not have a maximum sales price or maximum loan amount requirement. The income of the household will determine these amounts. Income limits do apply and are determined by the county in which the property located.
Click here for income eligibility.
• USDA HOME LOANS are limited to rural communities normally of 20,000 or less in population. Under certain conditions some areas of larger towns and cities may qualify.
Click here for property eligibility.
To apply for 100% USDA Financing and for more information, complete the form below, and a financing representative will contact you.
| The demand for
USDA RD Home Loans
has exploded over
the last couple
of years. Millions
of borrowers who
reside in rural
areas are potentially
eligible for USDA
Rural Development
100% financing.
USDA RD Home Loans
are all fixed rate
mortgages. The P&I
(principle & interest)
will not change over
the life of the loan.
USDA RD Home Loans
offer Competitive
30 year fixed rates.
Maximum rates allowed
are determined and
posted by USDA
Rural Development. | |
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