USDA Rural Development Mortgage Guidelines
This web site will explain the mortgage guidelines for a
100 percent loan to value (100% LTV), USDA Rural Development home mortgage
that is government guaranteed. Few people are aware this Guarantee program
exists.
This is not a subsidy loan so there is no recapture! 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. 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 and FSBO's 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 mortgage 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. This site
will also help real estate and mortgage professionals understand the
guarantee program's underwriting guidelines. |
