|
|
The USDA Rural Development Program is geared to help those with low to moderate incomes achieve the dream of homeownership. USDA Rural Development Guarantee (RDG) loans are 100 percent financed, require zero down payment and have no private mortgage insurance (PMI). The USDA RDG loans are set for 30 years at a fixed rate, and there is no limit on the price you pay for the home. The only qualifying factor for the home itself is that it be situated within an approved USDA eligible area.
Here are the major benefits:
- 100% mortgage LTV based on the APPRAISED value
- Available to first-time and non-first-time homebuyers
- Zero down payment and there is no minimum contribution required
- No limit on gifting funds
- No mortgage insurance required
- No reserves required
- Low interest rates (this is not a sub-prime mortgage)
- Flexible credit guidelines
A minimum of a 620 credit score is needed to qualify and borrowers must have adjusted gross income that sits under thresholds set by Rural Development. A 30-year fixed rate is required and the property may not be income producing.
To learn more about the USDA Rural Housing Program from 3rd Fed Bank, contact a mortgage specialist today.
|
|
