USDA Rural Development Loan
The USDA Rural Development's Guaranteed Rural Housing (GRH) Loan Program is designed to assist rural home buyers who have the dependable income and satisfactory credit history but not the down payment funds. The GRH program encourages lenders to provide financing to qualified home buyers by reducing the amount of risk involved for the lender.
Program Highlights
- 100% financing. No down payment required.
- No loan limits or sales price limits
- Income limits: 115% of U.S. median
- Maximum loan amount up to 102% of appraised value. Guarantee Fee may be financed into loan amount regardless of appraised value. One time 2.00% Guarantee Fee for purchase transactions and 0.5% Guarantee Fee for refinance transactions
- Loan can include closing costs if appraisal higher than sales price
- No monthly mortgage insurance premium
- No cash reserves requirement
- Borrowers do not have to be first time home buyers
- No limit on seller contributions
Interest Rate and Terms
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30 year fixed-rate, fully amortized loans only
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Interest rate is negotiated between the lender and borrower
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2/1 buydown - qualifying ratios at start rate with compensating factors
Property Requirements
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Property must be located in an eligible rural area.
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Site value should not exceed 30% of the total appraised value
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One-unit, non-farm, primary residences, including single family dwellings, condos, and PUDs
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Income producing properties are not eligible
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Manufactured homes are eligible if unit is 12 months old or newer and never occupied. Unit must be placed on permanent foundation and meet all required of FMHCSS. A builder's warranty of no less than one year must be issued to the home buyer.
More Borrowers Qualify!
- Income limits apply
- Expanded guidelines for calculating debt ratios
- Credit scoring flexibility with compensating factors
Call Me Today! 206.915.7317
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