Home Buyer Eligibility
The USDA Rural Development Mortgage Program has certain eligibility
requirements. You will find that they are not too restrictive but
please keep in mind that this mortgage loans primary purpose is to get
median income families into affordable and adequate housing. You
can find very detailed information about income and ratios from the menu
at the left. Here I will cover other areas that are equally
important. Citizenship You are required to be a U.S.
citizen or a LEGALLY admitted alien. OccupancyThe
borrower must have the ability to personally occupy the home on a
permanent basis. Present Housing You cannot own adequate
housing within the local commuting area after the the rural development
mortgage closes. A manufactured home on rented land or a
non-permanent foundation is considered inadequate. Federal Debt You
cannot be delinquent on a tax or non-tax federal debt. The
underwriter will use the HUD CAIVRS system to verify. Previous
Loan You cannot have previously had a rural development loan that
turned into a loss to the government unless Rural Development can
determine that it was beyond your control and that the circumstances no
longer exist. There is also a clause that says the lender has to
state that the loan would not have been made without the government
guarantee, for what ever reason. In today's market, that is pretty
much a given. There are very few 100% loan to value mortgages
available, ... especially at these low interest rates.
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