FHA Rural Home loans

What is a USDA Rural Development Loan?

by George Raymondo

I hear the same old thing over and over again. "That sounds to good to be true" or "Why aren't more buyers using this program to purchase a home? So What's the Catch? The truth is, this is one of those rare instances where there is no catch. So what's it all about? Well it's kind of funny when you think about it, when people hear the acronym USDA, the first thing they think of is “Where’s the Beef?” But the simple truth is, the USDA which stands for the U.S. Department of Agriculture, has one of the best loan programs available to home-buyers. The most common and widely used under the USDA umbrella is the Rural Development Loan. The RDL Program has provided a gateway for millions of Americans across the U.S. and its territories to realize their dream of home-ownership.

The USDA RDL has some amazing merits which include: Financing up to 102% of the appraised value (not sales price), $0 Down Payment requirement, low-low monthly mortgage insurance, easy qualifying through lower credit score requirements, and more flexible property requirements than FHA or VA, and best of all with the USDA Rural Development Home Loan, if you have had a previous short sale, your waiting period to purchase another home is as short as one year even if you were delinquent at the time of closing. Although there are income limitations, one of the highlighted features of this loan is that there are higher limits under this program than with other loan programs. This means that you can buy or build your dream home without as many restrictions. For more information, please visit the official USDA Website.

Program Highlights:

  • No Down Payment Required? No!
  • No Maximum Limits? Uh Huh!
  • Do I need Perfect Credit? Nope!
  • Flexible Terms and Easy Qualifying? That’s Right!
  • Greater buying potential? For Sure!
  • Home Repairs can be financed into loan? You got it!

USDA Home Loan vs. Traditional Home Loans

The USDA RDL home loan is surely the shining star of loan programs when compared to other bank or lender financing options. The most significant factor is the lack of a required down payment. What? That's right! This alone can help an individual or family stop renting and finally realize their dream of owning a home of their own. Other merits include low interest rates, much easier qualifying, and low monthly mortgage insurance which will surely a bundle of money over the life of your loan. In addition, the RDL loan program isn't as picky regarding the condition of the property as FHA or VA. Therefore you can offer on a home with less restrictions by not having to request as many repairs. We are a USDA Direct Lender and able to approve your loan in minutes. To see if your area of interest is located in a eligible area view the Official Map and contact us to get started today!

Financing USDA can better your chances of buying a home!

If you are one of the lucky persons who have stumbled unto this program either by being a diligent shopper or by referral, you’re at the right place at the right time. With the current housing market situation being as they are, many sellers are reluctant to sell their bank-owned properties to buyers with anything other than Conventional Loans. This is in part due to the high level of in-experienced loan officers in the business which have unable to close a large percentage of FHA loan applications.

In addition, the USDA RDL gives buyer and sellers greater latitude during the escrow process. For instance, the RDL does not require repairs other than major health and safety issues. This translates into the prospective buyers’ ability to offer on a home for instance that is missing items like kitchen cabinets, toilets, sinks, oven and microwaves, etc. With FHA or VA, the property cannot be sold as it, especially with these types of items missing. Another selling point is the USDA RDL does not require termite reports or completions. Although there are certain restrictions with this loan, most are minimal and can be addressed upfront by speaking with an approved USDA Loan Officer. Request a FREE Consultation.

How can I qualify for a USDA Home Loan?

Qualifying for a USDA Rural Development Loan is actually pretty simple. The process only takes about 10-15 minutes over the phone or via the internet. To see if you qualify or to find out if the area your interested in is eligible, contact an RDL Specialist and get started today . The main objective of this loan program is to boost the population in suburban and rural areas. This in turn helps generate tax revenue and promotes more sparsely populated areas hopefully elevating congestion towards city and major metropolitan areas.

Although there are income limits, they envelope the majority of the American population. As the members of the household increase, so does the income limits. The most restrictive determination of qualification would certainly be the location. In most cases, people are pleasantly surprised that just outside the urban areas there are many eligible areas. In order to see what areas are eligible in your area, please view the Official Map.

NOTICE: The USDA has remapped their eligible areas and have released the new map under "Future Eligible Areas". Although the pre-2010 Map is still in effect, the USDA website has posted the potential changes in the eligibility for October 1, 2013 barring Congressional Action to extend the current eligibility.
UPDATE: Congress has passed the Continued Resolution meaning the the 2010 Map will remain in effect until January 15th, 2014.


The University of North Carolina Press Dispossession: Discrimination against African American Farmers in the Age of Civil Rights
Book (The University of North Carolina Press)
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FHA backing away from Reverse Mortgages....

2009-09-22 15:05:48 by Apprsr

FHA Looking to Decrease Its Exposure to Reverse Mortgages
Reverse mortgage lenders are learning that the Federal Housing Administration is moving quickly to implement a reduction in the loan proceeds that seniors can receive from a FHA-insured Home Equity Conversion Mortgage.
Mortgagedailynews.com

Declining home values squeeze reverse mortgages

2009-10-04 22:05:18 by Apprsr

Kenneth Harney
Sunday, October 4, 2009
(10-04) 04:00 PDT Washington - --
Declining home values have put a serious squeeze on one of the mortgage market's most popular and fastest-growing financing concepts: the Federal Housing Administration's reverse mortgage program for seniors 62 and older.
In a letter to reverse mortgage lenders Sept. 23, FHA Commissioner David Stevens said his agency must reduce the maximum amounts seniors can receive on reverse mortgages because of a $798 million estimated deficit in the program in the coming fiscal year

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  • Avatar Roger Given the state of the economy,why does it take so long to get a home owners loan?
    Nov 03, 2011 by Roger | Posted in Renting & Real Estate

    Most FHA or Rural Development loans take a very log time for approval,although the persons applying for the loan can obviously afford it. One was told,you ll have to elsewhere you make to much money? If they can afford it why not have the loans processed faster to accomadate those who need housing?

    • Because no one can afford to back a loan that will fail, so lenders are extra careful.