Times are tough. There is no question about that. However, there are still places to go for help with getting a loan for your dream home. The program comes from the US Department of Agriculture and is called the USDA Rural Development Lending.
These loans were developed to help housing and development in America’s rural areas. People who have been renting in an area may decide they want to stay there and make the rural area their home. The loans are offered by the Dept. of Agriculture through the Rural Housing Division.
There are many great aspects of the USDA program. Number one is that it is probably the last place in the country that offers 100 percent financing. No money down allows people who may be renting in rural areas to buy with zero money down.
Other aspects of the Rural Development Program: no mortgage insurance is required, no cash reserves are required, there are low fixed rates, loans can be up to $417,000. The loans can be for a purchase or a refinance and excellent credit scores are not required. Closing cost and prepaid expenses that the buyer does not cover can be included in the mortgage.
If the house needs some repair those cost can be financed into the loan. So the loans can be for renovation of the home also. They can be based on “after repair value.” These loans are also good for the purchase of land and new construction.
There are some restrictions as to the population density and income. However many counties do apply. You can go to the USDA Rural Development website (eligibility.sc.egov.usda.gov) to see if the property you are interested in is eligible for this type of loan. After that, to get things started there is a short prequalification form to fill out that helps to get your needs stated.
This is a fabulous way to become a homeowner in these times of uncertainty. Conway, SC, is in a county that seems to qualify for this type loan and may be something that potential homebuyers will want to look into.
