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. |
