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Real Estate Professionals
The Rural Development offers you an opportunity to
sell more homes!
This product will enable you to assist your clients
that may face barriers in obtaining conventional financing. It will
expand your customer base to include low and moderate income home
buyers. You may reach more qualified buyers giving you the opportunity
to sell more homes and increase your earnings.
- 100% LTV
financing with no mortgage insurance.
- Expanded qualifying ratios and flexible
credit guidelines offer your clients more opportunities to purchase your
affordable homes.
- No maximum loan amount.
.Rural Development assists thousands of clients annually
to become homeowners. This year we want you as our partner! Call
your local Rural Development office today and learn which areas near you are
eligible for financing.
The
advantages:
- Loan closings within normal time frame.
- Loan up to appraised value plus the guarantee
fee.
- Include closing costs/repairs/renovations in
the loan.
- No need to increase contract price for seller
paid closing costs.
- No monthly mortgage insurance (MI).
- No maximum loan amount.
- No cash contribution or cash reserves required
from applicant.
- Non-traditional credit may substitute for lack
of traditional credit history.
- No minimum credit score.
- Repayment ratios are 29/41.
- Ratio waivers are allowed with documented
compensating factors.
- Not limited to first-time home buyers.
- Competitive market based fixed interest rates
with 30 year term.
- No need to change lender relationships.
- Any lender can originate loans through
an Agency approved lender.
- Rural Development provides support for
questions, training, and outreach assistance.
Frequently Asked Questions
Applicant eligibility criteria:
- Present home is inadequate or unsafe.
- Be able and willing to occupy the property as
primary residence.
- Be a U.S.
citizen, a U.S.
non-citizen national or a “qualified
alien”.
- Have repayment ability.
- Have a credit history that indicates a
willingness to meet obligations as they become due.
- Have an adjusted household income
that is within Rural Development guidelines based on the number of
persons who will occupy the home.
- Purchase a residential property that is
located in a Rural
Development eligible area.
Agency
approved (underwriting) lender list.
- Any lender may participate regardless of Rural
Development approval status.
Checklists and web site links:
·
Determine if
the property is within the Rural Development eligible
area.
ü Maps of Eligible Areas
ü Guide for using Maps
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Determine if
your applicant's adjusted
household income is within the Agency limits,
o Use the link "single family housing"
under "income eligibility"
·
What is “adjusted household income”?
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Useful web
links
Brochures and guides:
· Click
to obtain a Brochure
·
“quick guide” overview
Training
· PowerPoint presentation See the notes view for detailed loan
program information.
· For additional training, contact your local Rural Development
office.
Thank you for visiting our web
site. We look forward to working with you as partners in providing
affordable housing opportunities in rural areas. Let us know how we can
further serve you.
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