Harrisburg & Rural Development Financing
August 02, 2016 at 12:00 AM
Time for a "quick" look at USDA loan benefits...
No Down Payment Required. Borrowers who qualify for a USDA Rural Development home loan have the flexibility to pay nothing out of pocket for a down payment. Additionally, the USDA Loan allows borrowers to use a gift or grant to go toward their mortgage.
Competitive 30 Year Fixed Interest Rates. With the guarantee of the U.S. government, a lender can offer competitive interest rates to qualified individuals and families. And, beginning September 2014, the USDA will offer a 15-year fixed rate mortgage.
Flexible Credit Guidelines. Borrowers must still provide a credit history report. But the flexible guidelines allow potential homeowners with spotty or bad credit to still qualify for a home loan.
No Maximum Purchase Price. The USDA Rural Development program has no maximum purchase price limit. However, a lender will still determine the maximum amount of loan each applicant is eligible for based on ability to repay.
Who is eligible?
Any individual or family who plans to occupy a home located in an eligible rural area as their primary residence may qualify for a USDA Rural Development home loan.
An applicant for the USDA mortgage guarantee loan must provide sufficient income verification and a credit history that indicates an ability and willingness to meet repayment obligations.