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DOUG CAPPS

13 Things You Should Know About the USDA Rural Development Loan

Thursday, June 2, 2011 - Article by: DOUG CAPPS - Guaranty Bank and Trust Co - Message

13 Things You Should Know About the USDA Rural Development Loan

  1. USDA Rural Development has TWO different loans - Rural Development loans are broken down into two different loan types: USDA Guaranteed Rural Housing (GRH) Loans and USDA Direct Loans. USDA Guaranteed loans are originated through local Lenders, Banks and Brokers. The USDA Direct Loan is originated directly through the USDA office. There are distinct benefits of each program.
  2. NEW Income Limits - Based upon the number of people in the household: 1 to 4 = $74,050.00 and 5 to 8 = $97,750.00.
  3. 100% Financing - NO down payment. Can go up to 103.5% with financing USDA Funding Fee.
  4. NO Loan Limit - Unlike FHA or Down Payment Assistance programs, GRH loans have no maximum sales price limitation. The maximum sales price allowed is determined specifically by the borrower's financial situation.
  5. NO First-Time Home Buyer Requirement - You don't have to be a first-time home buyer to benefit from this program. Under certain circumstances, you can even own another home!
  6. NO Monthly Mortgage Insurance - Compared to FHA mortgages, mortgage payments on USDA loans are less because of the lack of mortgage insurance.
  7. Flexible Credit and Qualifying Guidelines - A 640 credit score is preferred.
  8. Finance Closing Costs - Borrower's closing costs/pre-paid items can be financed into the loan as long as there is room between the purchase price and the appraised value. NO other loan program allows for this!
  9. NO Limit to Seller Contributions - Most lenders/investors stick to the 6% rule.
  10. Appraisal Requirements - The appraisal requirements for RD loans are similar to standard conventional loans.
  11. Finance Required Repairs - Lender required repairs can be financed into the loan.
  12. Pools - Currently, USDA guidelines do not allow financing homes with in-ground pools without a waiver. Pools cannot have any contributory value.
  13. FAIRWAY MORTGAGE #1 in Desoto County - Fairway Mortgage closes more USDA Guaranteed Loans than any other mortgage lender, bank or broker in North Mississippi.

Don't miss out on a great loan opportunity! For more information regarding the USDA Guaranteed Rural Housing loan, please give me a call Doug Capps at 662-429-5100 Ext. 105. NMLS ID #68160.

Fairway Independent Mortgage Corporation, 224 West Commerce St, Hernando, MS 38632 is "A MS and TN Licensed Mortgage Company." An Equal Housing Lender. NMLS ID #2289.

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