USDA Rural Development Loans
USDA Loans
USDA Rural Development loans are one of the few ways remaining to obtain 100% financing for the purchase of a home. There are two main criteria for USDA loan approval. First, the home must be located in a rural or semi-rural area and second, your household income must be under certain limits established by the USDA. If you are buying a home in this type of area, we can check for eligibility in just a matter of minutes. You can also check for eligibility at this web site:
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
The great thing about these loans is that they do not require a down payment and the rates are very similar to rates ordinarily available with other loans.
Other benefits of a USDA loan include:
- Seller is allowed to pay buyer's closing costs
- Closing costs comparable – and sometimes lower - than other financing types.
- No private mortgage insurance requirement
- Perfect credit not required but must be generally good in the most recent 12 months
Although mortgage insurance is not required, USDA charges a guarantee fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.
Borrowers can apply for a USDA loan with any mortgage lender that participates in the USDA home loan program.
For more details, call Bob Graybill at 803-771-0080
Or email: bob@gulfstreamsc.com
