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Rural Development Mortgage Guidelines Allow For
100 Percent Financing Loans
By Diana L Hazlett There are many benefits to Rural Development
Mortgages that include 100% LTV based on the appraised value of your home,
zero down payment, and low 30 year fixed mortgage rates. USDA's Rural
Development guidelines provide flexible credit guarantees and require no
mortgage insurance. It is recommended that real estate agents and
for sale by owners should use this 100% rural development mortgage in their
advertising. If more people were aware of this government program, real
estate sales would increase substantially. Not every home or buyer will
quality for a rural development mortgage loan, but if they do they are
getting one of the top mortgages with low interest rates on the market
today. Rural Housing Service (RHS) was created in
1994 as a result of the Department of Agriculture Reorganization Act to meet
housing and community development needs. More rural families and individuals are now
able to become homeowners with the help of the Rural Housing Service
Programs. There are various programs available to aid low-to-moderate income
rural results to purchase, construct or repair a home. Rural development
mortgages allow qualified homebuyers the opportunity to get loans with
minimal closing costs and no down payment. Section 502 Rural Housing Guaranteed Loan
Program states that a loan guarantee through RHS means that, should the
borrower default on the loan, RHS will pay the private financier for the
loan. The rural development loan program's purpose is to enable loan and
moderate income rural residents to acquire modestly priced housing for the
own use as a primary residence. There is also a program available to
purchase and repair an existing or newly constructed home. The Section 503 Single Family Housing Direct
Loan Program states that individuals or families receive direct financial
assistance from the Rural Housing Service in the form of an affordable
interest rate home loan. Loans are typically made for 30-33 years and
eligibility is based on the family's income.
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