Rural Development Loan Facts
Don’t let someone you don’t trust handle one of the most important financial transactions in your life. Make sure you are working with an experienced rural development loan expert who will analyze your situation to determine if a USDA rural development home loan meets your needs. Many banks and lending institutions are not familiar with USDA guidelines and some are not even aware these no money down home loans exist.
Few people are aware that Rural Development Mortgages provide government guaranteed financing for 100% loan to value for home mortgages. With a Rural Development Mortgage, there is no recapture because it is not a subsidy loan.
There are many benefits to Rural Development Mortgages that include 100% LTV based on the appraised value of your home, zero down payment, and low 30 year fixed mortgage rates. USDA’s Rural Development guidelines provide flexible credit guarantees and require no mortgage insurance.
More rural families and individuals are now able to become homeowners with the help of the Rural Housing Service Programs. There are various programs available to aid low-to-moderate income rural
results to purchase, construct or repair a home. Rural development mortgages allow qualified homebuyers the opportunity to get loans with very minimal closing costs and no down payment.
Section 502 Rural Housing Guaranteed Loan Program states that a loan guarantee through RHS means that, should the borrower default on the loan, RHS will pay for the loan to the private financier. The rural development loan program’s purpose is to enable low and moderate income rural residents to acquire modestly priced housing for use as a primary residence. There is also a program available to purchase and repair an existing or newly constructed home.
The Section 503 Single Family Housing Direct Loan Program states that individuals or families receive direct financial assistance from the Rural Housing Service in the form of an affordable interest rate home loan. Loans are typically made for 30-33 years and eligibility is based on the family’s income.
Have Questions about a Rural Development Loan? Contact Us
Unsure If You Qualify for a Rural Development Loan? Check Requirements HereSource: www.ruraldevelopmentloan.org