USDA Rural Development Mortgage Guidelines

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USDA Funding Depleted

H R 5017 Funding Update

USDA Rural Development Guaranteed  Mortgage Guidelines

Funding update: 08/31/2010

This web site will explain the mortgage guidelines for a 100%  loan to value (100% LTV), USDA Rural Development Guaranteed  home mortgage  that is government guaranteed. Few people are aware of this Rural Development Loan Guaranteed program.

As a side note, USDA also offers a USDA Rural Development Direct Mortgage Program for people with low to very-low income. (even people on a fixed income) The guidelines are quite different so you should visit this site:  USDA Rural Development Direct Loan

USDA Rural Development Guaranteed Mortgage

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.

Few people including real estate agents and loan officers are aware of this government program.  If they were, a lot more homes that are on the market today would be selling.  Real estate agents and For Sale By Owners should use this 100 percent loan to their advantage in their advertising.

Not every home or buyer will qualify for this loan, but if they do they are getting one of the top mortgages with low interest rates on the market right now.

The sad news is that on March 10th, 2010 USDA announced that the funding for this program would be depleted in April of 2010.  This has had a major impact on the housing market and the economy.  Congress could have prevented this.  As of today, July 25th, 2010 there still is no funding. 

The good news it that FY 2010 only has about two months remaining.  As we go into FY 2011 USDA will receive funding.

We are not part of  USDA Rural Development and we are not a mortgage lender/broker.  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 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.

 
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 Copyright 2008 | Kale Enterprise Corp. | Cartersville, Georgia, 30120

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