NO MONEY DOWN LOANS

Dated: 09/18/2017

Views: 361

USDA Rural Housing LoanImage title

What does this program do? 
This program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers.

Who may apply for this program?
Applicants must:

  • Meet income-eligibility

  • Agree to personally occupy the dwelling as their primary residence

  • Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien

  • Have the legal capacity to incur the loan obligation

  • Have not been suspended or debarred from participation in federal programs

  • Demonstrate the willingness to meet credit obligations in a timely manner

  • Purchase a property that meets all program criteria

What is an eligible area?
Check eligible addresses for the loan guarantees.

How may funds be used?
Funds backed by loan guarantees be used for:

  • New or existing residential property to be used as a permanent residence.  Closing cost and reasonable/customary expenses associated with the purchase may be included in the transaction

  • A site with a new or existing dwelling

  • Repairs and rehabilitation when associated with the purchase of an existing dwelling

  • Refinancing of eligible loans

  • Special design features or permanently installed equipment to accommodate a household member who has a physical disability

  • Reasonable and customary connection fees, assessments or the pro rata installment cost for utilities such as water, sewer, electricity and gas for which the buyer is liable

  • A pro rata share of real estate taxes that is due and payable on the property at the time of loan closing.  Funds can be allowed for the establishment of escrow accounts for real estate taxes and/or hazard and flood insurance premiums

  • Essential household equipment such as wall-to-wall carpeting, ovens, ranges, refrigerators, washers, dryers, heating and cooling equipment as long as the equipment is conveyed with the dwelling

  • Purchasing and installing measures to promote energy efficiency (e.g. insulation, double-paned glass and solar panels)

  • Installing fixed broadband service to the household as long as the equipment is conveyed with the dwelling

  • Site preparation costs, including grading, foundation plantings, seeding or sod installation, trees, walks, fences and driveways

How do we get started?
To apply for this program, please contact a local mortgage lender.  Applications must be submitted through an approved lender.  If you are unable to find a participating lender, your state’s Guaranteed Loan Coordinator can help you find one. 
If you would like to be connected with an approved lender to obtain loan pre-approval please call or email me 843-603-5552 [email protected]

Who can answer questions?
Applicants with questions should contact an approved lender.  Lenders with questions can contact a Guaranteed Loan Specialist in your state. If you would like to be connected with an approved lender to obtain loan pre-approval please call or email me 843-603-5552 [email protected]

Why does USDA Rural Development do this?

This program helps lenders work with low and moderate income families living in rural areas to make homeownership a reality. Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas.

When you are ready to consider buying a home give me a call or email to get started. 843-603-5552 [email protected]

Blog author image

Wayne Gaddy

Experienced Top Producing Real Estate Broker/REALTOR® specializing in the Purchase and Sale of Residential Homes, Condos, Vacation Homes, New Homes and Investment Property. A Realtor® who has a prov....

1 comments in this topic

  • Posted by Wayne Gaddy
    10/03/2017
    There are also down payment assistance programs for those that qualify. Call today to speak with a mortgage lender who can help you. 843-603-5552

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