Not looking to lead a city-centric life? If you like the elbowroom and freedom that life in a rural area offers, the USDA Rural Housing Loan Program may be a good fit. Read through the details below, and be sure to ask our friendly Mortgage Team any questions you may have!
Guidelines:
LOAN FEATURES:
- 100% financing available
- Full appraisal required. Appraiser must be HUD approved
PROPERTY:
- Must be in a rural area as determined by USDA Rural Development. (Website – http://eligibility.sc.egov.usda.gov)
- Minimum loan amount $35,000.
- No Condominiums
- No Manufactured homes
- The property must be non-farm, non-income providing tract.
INELIGIBLE AREAS:
- See USDA website for eligible areas. http://eligibility.sc.egov.usda.gov
FLOOD INSURANCE:
- Existing homes in special flood hazard areas are eligible.
INCOME:
- Borrower must be within income limits. Refer to: http://eligibility.sc.egov.usda.gov for validation.
- All qualifying income must be stable and likely to continue for the next 3 years.
CREDIT:
- Credit 640 minimum – No exceptions. All borrowers must have a minimum of 2 credit scores (borrower with one credit score is unacceptable).
- Student loans must be counted in qualifying regardless of deferment status.
UNDERWRITING:
- All loans must be approved through USDA.
- Not required to be a first-time homebuyer. If borrower owns another home must not be USDA financed.
- Escrows required for taxes and insurance.
- Closing costs may be included in the loan up to appraised value when the sales contract is lower than the appraised value.
- Borrower must be a U.S. Citizen or Permanent Resident Alien.
REFINANCE:
RATE/TERM (Non-Streamlined)
- Only USDA Guaranteed loans eligible (no Direct loans)
- Current appraisal required. No transferred appraisals allowed.
- Subject property must still be the borrower’s primary residence.
STREAMLINED REFINANCE
- Only USDA Guaranteed loans eligible (no Direct loans)
- The value of the new mortgage loan request can be supported by the original appraisal report obtained in connection with the existing mortgage.
- The maximum loan amount may not exceed the original loan amount at the time of purchase.
There are a lot of options to consider, but you’re not alone in this! Don’t hesitate to reach out to our Mortgage Team, visit one of our convenient locations, email us or call: +1 (919) 689 1999 for help.
Apply For A USDA Rural Housing Loan Today
NMLS #462560
