WHAT
ARE THE SPECIAL ADVANTAGES OF A USDA LOAN?
- No Down Payment
- No Mortgage Insurance
- No Cash Reserves Required
- No stated maximum loan amount; maximum loan based on repayment ability
- Loan up to 102%* of appraised value allowed…not the lesser of Sale
Price or Appraisal
- No First Time Homebuyer Requirement
- New and Existing Homes OK
- Fully amortized 30-year fixed rate loan
- No Prepayment Penalty
- No Seller Contribution Limit
- No limitation on source of funds for closing costs
- 100% gifted closing cost or down payment assistance is permitted
- Loan amount can include closing costs and repairs up to appraised value
- While an RD loan is not FICO Score driven RD does reward you for higher
scores. **
* Appraisal may be exceeded by amount of
Guarantee Fee
** Borrowers with a 620 mid-score or higher
get an automatic “Credit Waiver” and do not need to
explain credit derogatory including BANKRUPTCY and
no Rental verification is required. Exception:
Any applicant with delinquent Federal debts,
regardless of credit risk score and any applicant
with an unsatisfactory payment history on a previous
Rural Development loan, regardless of credit risk
score.
For general information purposes only. Loan
approvals are subject to Lender underwriting
guidelines and RD regulations 1980-D and applicable
ANs. |
