USDA Guaranteed loans are flexible to accommodate clients who need 100% financing, expanded ratios to qualify, and flexible credit guidelines. These loans are intended for homes outside of direct metropolitan areas, meaning more rural and suburban areas.
Home buyers are able to retain their savings since there is no down payment required and closing costs can be financed up to the appraised value. USDA loans do not require monthly mortgage insurance premiums (MI). Mortgage payments without (MI) allow the client to have more available income each month. These loans do have a one-time guarantee fee that may be rolled into the loan above the appraised value. Here are some of the advantages of the USDA Rural Development loan:
- No down payment required.
- Loan up to appraised value plus the financed one-time guarantee fee.
- No monthly mortgage insurance (MI)
- No cash contribution or cash reserves required from the client.
- Gift monies allowed to help pay for closing costs.
- Not limited to first time homebuyers.
- Competitive market based fixed interest rates with 30 year terms.
- No maximum purchase price, repayment ratios determine purchasing power and affordability.
- Condos are eligible but must be approved by one of the following: HUD, VA, Fannie Mae or Freddie Mac.
- Townhouses are ok (attached or detached)
USDA Guaranteed loans are for single family “primary residences” only and must meet two primary obligations:
- The property must be located in an eligible area.
- The household income must not exceed the adjusted income limit for the area.
(Contact us for more details these 2 criteria)
Thank you for visiting our website and expressing interest in the USDA Rural Development Guaranteed loan, please contact us for more information regarding this program. We look forward to working with you to provide affordable housing opportunities. Let us know how we can further serve you.
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