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 Direct Mortgage 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 (Still no funding as of
02/08/2011.)
USDA Guaranteed Loan The
major benefits are:
- 100% mortgage LTV based on the APPRAISED value
- Zero down payment and there is 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, this is not a sub-prime mortgage
- Flexible Credit Guidelines.
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
the selling real estate. Not
every home or buyer will qualify for this loan. If they do qualify they
will be getting one of the top mortgages, with lowest interest rates in the
market today. The sad news is that on March 10th 2010, USDA
announced the funding for this program would be depleted in April of
2010. This had a major impact on the housing market and the
economy. Congress could have prevented this. As of today,
January 22, 2011, there is funding but this depletion of funds in early
spring of 2010 gave many lenders a bad taste for this loan. It is not
uncommon for USDA to deplete their funding but normally that happens
toward the end of the fiscal year. 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. If you
have questions you can email us and we will do our best to help you find
the answers. |
