USDA Rural Development Guaranteed Mortgage Guidelines
This web site will explain the USDA Rural Development guaranteed mortgage guidelines.
This is a
100% loan to value (100% LTV), government guaranteed home loan that
is geared to help moderate income families.
As a side note, USDA also
offers a USDA
Rural Development DirectMortgage for people with low to
very-low income. The guidelines for the Direct loan are quite different so you should
visit this site: USDA
Rural Development Direct Loan
USDA Guaranteed Loan
major benefits are:
100% mortgage LTV based on the APPRAISED value
Zero down payment and no minimum contribution required.
No limit on seller concessions or gift
No mortgage insurance required
No reserves required
30 year fixed rate only
Lenders must be USDA approved.
Low interest rates
Flexible Credit Guidelines
Property must be in a rural eligible location
In the not so distant past few people, including real estate agents and loan officers,
were aware of
this government program. Real Estate Agents, Lenders, and For Sale By
Owners should use this 100 percent loan to the advantage of the buyer and
every home or buyer will qualify for this loan. If they do qualify they
will be getting one of the top mortgages, with the lowest interest rates
Here is a very short video that covers the basic
qualifying factors. You should still review the rest of this site for more
The only disparaging issue is the Government
operates on a fiscal year budget that ends on September 30th of every
year. It can take a month or much more after September 30th for the
new budget to be allocated. It is also possible to deplete the
budget prior to Sept 30th, as it has in the past. Your loan could be
held in limbo, with out closing, if it falls into this time
Lenders usually have the option to close the
loan without budget if they are issued a Loan Note Guarantee -
"Subject to Fund Allocation". Most lenders will not close
with a "subject to" LNG. If this happens it becomes a
We are not part of USDA Rural Development
and we are not a mortgage lender/broker. We do not collect your
information or sell leads. We put out this information
because we believe in educating buyers so they don't get ripped
off in the market.
We have several other sites that cover the mortgage
underwriting guidelines for FHA, VA, and Conventional Mortgages as
well. The other websites we operate are listed at the bottom
of this page.
As a buyer you should familiarize yourself with the
guidelines of each mortgage product. Then you will know what program
best meets your needs BEFORE you shop for a home loan. The more
you know and understand the less likely it is that you will fall prey to
people with a different agenda than your best interest.
have questions you can email us and we will do our best to help you find
Copyright 2008 | Kale Enterprise Corp. |
Cartersville, Georgia, 30120