The program sets limits on the maximum adjusted gross income that a qualified borrower is allowed to have, as well as maximum loan amounts based on the area's current FHA loan limits. Allowable income adjustments include amounts for minor children, child-care expenses, and elderly family members. For the most part, these limitations are not placed so low as to preclude a large segment of moderate-income borrowers from qualifying for the program. Perhaps the most stringent limit of the program, however, is the requirement that the borrower be unable to obtain the financing necessary to buy a home without Rural Development's assistance. In other words, the borrower must be rejected by or be unable to qualify for any other available loan program, such as conventional, FHA, or VA loans. But although unable to qualify for other funding sources, borrowers must still have an OK credit record that shows a history of meeting their financial obligations. 

This program is, in my humble opinion, the best mortgage available to help many areas increase sales, over come the negative effects of the mortgage mess, and truly help buyers and sellers.

Now the highlights:

1. 100% of sales price up to 102% of APPRAISED value, which may include ALL closing costs and pre paid items and even refund escrow deposit in many cases.

2. NO PMI--- this means lower payments, means more people fit into the debt to income limits

3. It is NOT just for "rural" areas. The agency's (USDA) definition of rural, and what most of us consider rural, are two different things. If you check the maps for your area you'll be delighted in what qualifies as rural.

4. All homes, condos and town homes qualify if there are in a "eligible area".

5. With a 620 score, the buyer needs no explanation for prior derogatory credit nor do they have to pay off collections.

6. There are NOT nearly as many credit "gray" areas as there are in FHA lending.

7. There are NOT any loan limits.

8. Sales concessions are NOT needed in most cases (seller paid closing costs).

We can pre approve buyers in under 15 minutes for this program and close as fast as 10 working days. NOT every bank or broker is able to offer or knows how to do these loans, make sure you deal with an RD Loan expert (like us!).

• Everything you ever wanted to know, the facts not the myths can be found at the USDA web site

• USDA INCOME Eligibility Check

• USDA Property Eligibility Check

Hope this information is helpful.  We would be proud to help you make your home buying dreams come true with a ZERO DOWN USDA Rural Development Loan. Apply Today. Have an answer tomorrow!

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