The United States Department of Agriculture has TWO very distinct programs designed to promote home ownership for rural Americans. The DIRECT RD (rural development) loan is primarily used to help LOW income individuals purchase homes and is available ONLY at your local USDA office. These loans provide housing at a subsidized interest rate and can have a “recapture” feature when the home is sold.
We offer the GUARANTEED loans here at iLoan. This program is at a market rate for qualified home buyers at what is USDA considers “moderate income rural Americans”. Applicants for loans may have an income of up to 115% of the median income for the area. Call an iLoan RD Loan Originator to confirm the area median income for the area you may be looking to purchase is. This program does NOT have the “recapture” feature.
PROGRAM BENEFITS
- NO Down Payment
- NO PMI (Private Mortgage Insurance)
- No acreage limits
- Townhomes, condos and SFR allowed
- Loans to purchase new manufactured, new & existing construction and down payment assistance available
- Eligible applicant must-
- Have steady and dependable income
- Be credit worthy
- Unable to obtain conventional credit
- Not be a current homeowner (RD may consider a move up buyer)
- Loans may be up to 100% of MARKET VALUE
- Loans are 30 year fixed amortizations and rates based on the current Fannie Mae 90 day actual
- Ratios are 29% PITI and 41% back end ratios (exceptions can be made to ratios with compensating factors)
- Closing costs can be included in the loan, including the Up Front Guarantee Fee !
- Moderate and low income limits apply.
- Financed dwellings must be in good condition, meet RD Thermal Standards and be inspected by a licensed appraiser
Again… contact us here at iLoan to get more answers about this great NO MONEY down purchase program.
Related Articles:
