Written by Administrator
QUICK GUIDE USDA, RURAL DEVELOPMENT
GUARANTEED RURAL HOUSING LOAN
Advantages
- No Down Payment Required
- 30 year fixed rate
- 102% LTV (100% plus guarantee fee)
- Finance Closing Costs If Appraisal Is Higher Than Sales Contract
- No Mortgage Insurance
- No cash contribution required from borrower Unrestricted gifts, no need to document source
- No Maximum Loan Amount
- No Reserve Requirement
- High earnings potential.
- Competitive rates (set by underwriting lenders)
Rural Development designated rural area
Homes must be located in rural areas. Rural areas include open country and places with a population of 10,000 or less and-under certain conditions-towns and cities with between 10,000 and 25,000 residents. There is an automated rural area eligibility calculator at http://eligibility.sc.egov.usda.gov, click on