USDA RURAL HOME MORTGAGES - USDA RURAL HOME LOANS
Let's cover some of the highlights of this tremendous program:
100% financing-with a maximum of 103.5% including up to a 3.5% point guarantee fee-depending if the transaction is a purchase or refinance
Only to be used with a single family home loan purchase-we DO have access to other USDA and agriculture loans-call us to see what we might have available
Tighter ratios-in line with FHA(slightly more conservative) 29/41 The first number is the amount of income you can allocate towards a house payment. It is ratio of your gross income. The second number is the amount of income and long term debt you can have on a monthly basis. You subtract out the long term debt from the bigger ratio and use the smaller of either the first ratio or the number after long term debt. This is the amount you can use for a house payment.
Minimum credit scores of 585. Also, 12 months of on time rent payment verification is required if your credit score is less than 620.
Sellers can contribute up to 6% of the purchase price towards your closing costs.
This loan is underwritten manually-not on an automated basis. Maximum acreage allowed is 10 acres, no inground pools, the land value by itself cannot exceed 30% of the value-UNLESS that is typical for the area and exception WILL be required.
Property must be in a designated Rural Community. Are you in a Rural Community? Go to http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
The borrower's adjusted income cannot exceed moderate income as determined at this site: http://eligibility.sc.egov.usda.gov