>> USDA Rural Development Loan
Advantages & Benefits of Direct & Guaranteed Rural Housing Financing:
The program provides up to 100% financing. This eliminates the need for down payment and private mortgage insurance. Borrowers receive competitive 30-year loans with fixed interest rates and reasonalbly quick turnaround times on approval/undewriting.
Guaranteed Rural Housing Loans Guaranted loans are available to assist eligible households with moderate incomes that do not exceed 115% of median income for the area.
Direct Rural Housing Loans (also called Section 502 Direct Loans) are directly funded by the Government. These loans are primarily for low and very low income households to buy a homes primarly in rural areas. Direct loans are available to assist eligible households with very low incomes defined as 50% of the area median income, and low incomes defined as 50-80% fo the median income, and moderate income as 80-100% of the median income for the area.
• No downpayment: True 100% product
• No expensive monthly mortgage insurance: Borrowers can afford more home!
• No cash reserves are required
• No minimum credit score: Excellent for non-traditional credit histories
• Expanded qualifying ratios: 29/41%
• No asset limits: Borrowers may keep liquid cash savings and other investments
• NOT just for first time buyers: Anyone may qualify
• No purchase price limits: Clients may purchase home that meets their needs
• Loan up to 102% of the appraised value. The 2% Guaranteed Fee may be added to loan amount regardless of appraised value. (100.5% on refinances of Rural Development direct or guaranteed loans with no cash out)
• No limitation on source of closing costs: 100% gifted closing cost or down payment assistance is allowed. Funds from AmeriDream, Partners In Charity, or similar housing assistance from community based organizations may be used. Soft second mortgages are allowed for closing costs even if the total debt exceeds the appraised value of the property
• Repairs may be financed up to 100% of the appraised or "as improved" value.
• No limit on seller concessions to pay for closing costs and/or repairs. A Fannie/Freddie guideline is the 6% concession limit.
• Competitive 30 year fixed interest rates
•Quicker underwriting times on Guaranteed loan program
• Most counties in your state are eligible. For example; Illinois has 102 counties and only 3 are entirely ineligible: Cook, DuPage, and Lake.
OR by Phone: On Call Loan Advisor: (309) 665-0506
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NMLS # 71983
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