• No Down Payment Required

• 30 year fixed rate

• 102% LTV (100% plus guarantee fee)

• Finance Closing Costs If Appraisal Is Higher Than Sales Contract

• No Mortgage Insurance

• No cash contribution required from borrower.

• Unrestricted gifts, no need to document source.

• No Maximum Loan Amount

• No Reserve Requirement

• High earnings potential.

• Competitive rates (set by underwriting lenders).

Acceptable credit history:

• Have a credit history that indicates a reasonable willingness to meet obligations as they become due

• Streamlined credit approval when primary applicant has a middle credit score above 620

• No minimum credit scores

• Lack of credit is not derogatory

Must meet property and income eligibility guidelines.  Call for specifics as to your desired property area and your income.

Applicant(s) have an adjusted household income that does not exceed the moderate income limit established for the area. A family’s income includes the total gross income of the applicant, co-applicant and any other adults in the household. Applicants may be eligible to make certain adjustments to gross income-such as annual child care expenses and $480 for each minor child-in order to qualify.

There is an automated eligibility calculator at: http://eligibility.sc.egov.usda.gov

Applicant(s) repayment ability:

The ratio limits are 29 front (housing, PITI), 41 back (total debt, MOTI). Rural Development allows expanded repayment ratios if the applicants have sufficient compensating factors.

Other eligibility criteria:

• Do not own a dwelling

• Insufficient resources to secure conventional without the guarantee

• U.S. citizen or permanent resident or qualified alien

• Legal capacity

• Primary residence

Loan-To-Value (LTV) and Loan Limit:

• 100% LTV plus the amount of the guarantee if financed

• Loan amount can exceed appraised value by the amount of the guarantee fee

• There is no loan limit

Property requirements:

• New or proposed home construction:

• Meet the county and state code. Use conventional appraisal (new homes only).

• All existing homes: Meet requirements of HUD Handbooks 4905.1 and 4150.2 and comply with Rural Development thermal criteria. Loan funds may be used for repairs. Typically repairs must be completed prior to Rural Development issuance of the Loan Note Guarantee

• Both new and existing: Private well water quality must meet local and state code.

• Existing (previously occupied) manufactured home cannot finance under this program.

• New manufactured homes: Rural Development will finance new manufactured homes through approved dealer-contractors. Contact your local Rural Development office for a list of approved dealer-contractors and the specifics of how new manufactured homes can be financed.

• Modular homes: New or existing modular homes can be financed the same as stick built homes.

• Condo: Rural Development can finance if it meets the standards for Fannie Mae, Freddie Mac, VA, or FHA.

• Town home: Same as condo. A town home must have provisions for maintenance such as HOA.

• Flood Zone:  Any existing improvements located in a special flood hazard area must have federal flood insurance coverage. New construction is not permitted until a Letter of Map Revision/Amendment is issued by FEMA.

Term: 30 year fixed

Prohibited Loan Purposes:

• Co-signors not residing in the household

• In-ground swimming pools

• Existing manufactured homes

• Construction draws

• Furniture and personal property

• Income producing property

• Non-essential buildings and land