USDA Rural Loans
The USDA Rural Housing Service has various programs available to aid low- to moderate-income rural residents to purchase, construct, repair, or relocate a dwelling and related facilities. USDA rural housing loan programs allow qualified homebuyers to get loans with minimal closing costs and no down payment.
Advantages:
- No down payment requirement
- Property must be located in an eligible rural area
- Closing costs can be added to the loan amount (if the property appraises high enough to include it at up to 102% of the appraised value)
- Loan government guarantee fee with no monthly guarantee fee
- Low interest rates
- Applicants with a wide range of credit profiles may qualify
- Income eligible applicants who do not qualify for conventional financing may qualify
- Families & individuals that have minimal funds for a down payment and closing costs. Includes first time homebuyers and repeat homebuyers
- Seller concessions – 6% max
- No cash reserve requirement
- No Non-Allowable costs
- No First Time Homebuyer Requirement
- 30 Year Loan @ competitive fixed rate
- No limit on gift funds
Features:
- Property must be in very good condition and have a high insulation R-factor
- You can not make over 50% of 115% of the median county income to qualify
- Must be able to verify income limits