The USDA Rural Housing Loan, also known as, USDA Rural Development Guaranteed Housing Loan Program, USDA loan, or Section 502 loan, is available for low-income families that don’t have adequate housing, and want to purchase a primary residence home. To be eligible, the family’s income cannot exceed 115% of the median income of the community where they live. The USDA Rural Housing Loan allows to purchase a house that is located in a rural area, and that is considered modest in size, design, and cost.Highlights:
- Available to purchase new construction homes, existing homes, modular homes, Planned Unit Developments, and eligible condominiums.
- No money down required.
- The closing and lender fees can be either payed by the borrower or included in the mortgage loan.
- The underwriting guidelines are less strict than other type of mortgages.
- No maximum purchase limit.
- You can finance up to 100% of the value of the home set by the appraisal.
- It is only available for a 30 year fixed rate mortgage.
- Competitive fixed rates.
- Not available for a cash-out refinance loan.
- A reasonable credit history is needed.
- Manufactured homes are eligible as long as several requirements are met.
- Subsequent buyers are welcome to apply for the USDA loan program.
The USDA Rural Housing Loan is insured by the U.S. Department of Agriculture. Even though the USDA loan is for low income families; they should be able to pay for the mortgage payments, taxes, and insurance.
If you think or want to find out whether or not you qualify for the USDA Rural Housing Loan, contact us. We are a reputable mortgage broker in the New York area, and are ready to help you with any of your mortgage loan needs.
Email us or call us at (800)842-2910.
