USDA Rural Housing Loans
Please note that the rates below are not for USDA
rural housing loans. Please use the survey to contact
companies serving your area to find out if they offer
USDA mortgages and/or other low money down solutions.
USDA
rural housing loans are geared toward homebuyers who
live in rural areas of the Country and who have little
to no money to put down. USDA rural housing loan programs
offer flexible, common sense underwriting guidelines,
relaxed credit requirements, no PMI (private mortgage
insurance) options, the ability to finance closing
costs into the loan amount, lenient seller concessions,
and rates that are comparable to, if not better than,
conventional fixed rate mortgage programs.
You may also check the USDA
web site to confirm the property eligibility and
income limits for the subject property and area (you
will see those links on the left navigation). In today’s
shrinking credit market, USDA rural housing loan programs
are one of the only 100% mortgage financing options
in the marketplace. Although some companies do
not currently offering USDA home loans, they may offer
other popular low money down mortgage solutions such
as VA mortgages and FHA loans. Call the companies
in the survey for details.
USDA Rural Housing Loan Program Highlights
(subject to change):
- Loans may be for up to 102% of the appraised value or sales price (whichever is lower). A one time 2% guarantee fee can be included in the loan which is how the loan can go up to 102%. This feature allows buyers to finance this expense into the loan amount versus paying it out of pocket.
- No PMI (private mortgage insurance)
- Secure, fixed-rate 30 year mortgages
- Sellers can assist with paying the buyer’s closing costs
- Little cash reserves needed for qualified borrowers
Partial List of Eligibility Guidelines for USDA Rural Housing Mortgages
- Homebuyers must be United States’ citizens, qualified
aliens, or legally admitted to the U.S. for permanent
residence.
- Adjusted annual household income cannot exceed
the moderate income limits for the area. A family’s
size and child care considerations may increase
chances for qualification if deductions are applicable.
- Primary residences only
- Home must be located in rural areas.
