Simply The Best Loans

The USDA Rural Development Home Loan is one of the last remaining ways to help homebuyers buy a home without a large down payment.  Believe it or not, USDA has been around for a long time.  Since the demise of the “subprime” no money down, no mortgage insurance loan, Loan Officers are going back to the basics.
 

What is a USDA Rural Development Loan?
 

A USDA Rural Development Home Loan is a loan backed by the USDA that allows homebuyers to purchase a new home for 102% financing. There are not many other options left to buy a home with no money down, and it is unclear how long this program will be available as it relies on government funding every year.  The best features of a USDA loan are the long list of benefits to borrowers. 
 

Compare these features with your other loan programs:

* No money down—up to 102% financing and based on appraised value
* No mortgage insurance required (just 2% upfront guarantee fee)
* Thirty-year fixed rates with no loan limits (income limits apply)
* New or existing homes accepted
* New manufactured homes on land/foundations also eligible
* No first-time homebuyer requirements
* No cash reserves required
* Owner-occupied only
* Generous seller contribution limits

* Not a government or down-payment-assistance program
* It’s a lender’s program–using lenders’ money and lenders’ loan forms

Eligibility includes household income limitations and geographic location of the property being financed.  To learn more about the USDA Rural Development Home Loan, visit www.usda.gov

This entry was posted on Thursday, August 13th, 2009 at 9:22 am and is filed under Residential Mortgages, Consumer Alerts, General Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.