Smart Home Buyers in Terryville CT are very interested in the USDA Rural Development Guaranteed Housing Loan.
They find this mortgage particularly attractive because:
• No Down Payment is required
• Have the ability to finance 100% of the home’s appraised value
• Lower mortgage insurance than conventional or FHA loans
• More lenient credit score requirements than for conventional loans
• Unlike VA loans, there is no military service requirement
• The only zero-down loan on the market besides the VA mortgage
The USDA Rural Development Guaranteed Housing Loan program offers many benefits to qualified buyers
• Up to 100% Financing of the home’s Appraised Value – No Down Payment is required on eligible homes
• Ability to finance Closing Costs when the Appraised Value is higher than the contract sales price of eligible properties
• One 30 year fixed rate mortgage at today’s low-interest rates
• Buyers with <20% down payment can afford higher priced listings because Monthly MI is cheaper than premiums associated with conventional and FHA mortgages
• No Pre-Payment Penalty. No Re-Capture Tax like CHFA
• No limit on Seller Contributions. No limit on Gift Funds
• No Cash Contribution required from buyer
• Credit Scores down to 620.
The USDA Rural Development Guaranteed Housing Loan program does have a few restrictions:
• The home must be in USDA “designated rural areas” like Plymouth, CT
• Adjusted household income cannot exceed established income limits
• Available to First Home Buyers and Repeat Buyers purchasing a single family home as their primary residence in a USDA eligible area
> Cannot own any other type of residential property at time of closing
My expertise with the USDA Rural Development Guaranteed Housing Loan expands my ability to provide clients with the right home financing solution.
Call Me to discuss your mortgage options and to take advantage of my FREE Jump Start Mortgage Pre-Approval service.
You just might be able to move into your new home in Terryville, CT with little or no out-of-pocket money and low affordable monthly payments.
The USDA Guaranteed Rural Housing Development Loan (aka USDA RHD Loan) is extremely popular with Millennial Home Buyers. That’s because the program requires Zero Down Payment. That’s right… 100% Financing is available to purchase eligible properties in select areas of Connecticut.
And, it just got more attractive Just in time for the New Year, the USDA lowered its Up-Front Mortgage Guarantee Fee from 2.75% to 1.00%. And… it also reduced its Monthly Mortgage Insurance Premium from 0.50% to 0.35%
The USDA loan is now one of the most affordable home loans available, This fee reduction makes the RHD less expensive than FHA products. A USDA home loan can make owning a home less expensive than renting one and could be the avenue for Millennial Home Buyers to move into a new home in 2017.
What Is a USDA Loan? The United States Department of Agriculture partners with approved local lenders to assist homebuyers with competitive interest rates and loan terms to buy their primary residence in select areas of Connecticut
The Program Offers:
100% Financing – No Down Payment is Required. Coming up with a Down Payment is one of the biggest barriers to entry into the housing market for Millennial Home Buyers. A USDA mortgage eliminates that obstacle.
Closing Costs Can Be Rolled Into the Loan Amount. The closing costs associated with obtaining a mortgage can be included in the loan amount when the appraised value exceeds the contracted sales price.
Liberal Credit Scores. The USDA Guarantee allows lenders to approve mortgages that would not qualify under guidelines for other programs. Applicants with credit scores down to 640 are eligible for this loan.
Debt:Income Ratios: To qualify, you must meet debt-to-income requirements. The DTI ratio limits are 29% (for PITI) and 41%. The reduced fees make it easier to meet these ability to pay guidelines.
Millennial Home Buyers often chose the more expensive FHA loan program, even when they are buying in USDA-eligible areas. If you are buying in a suburban or rural area, it pays to check USDA eligibility maps. Choosing USDA can save you the 3.5% down payment that FHA requires. And, now that the reduced mortgage insurance fees are in effect, you can save money each month over FHA
Eligible home buyers should weigh the benefits of a USDA loan.