Bloomfield, MI - Few people are aware that Rural Development Mortgages provide government guaranteed financing for 100% loan to value (LTV) for home mortgages. With a Rural Development Mortgage, there is no recapture because it is not a subsidy loan.
There are many benefits to Rural Development Mortgages that include 100% LTV based on the appraised value of your home, zero down payment, and low 30 year fixed mortgage rates. USDA’s Rural Development guidelines provide flexible credit guarantees and require no mortgage insurance.
It is recommended that real estate agents and for sale by owners should use this 100% rural development mortgage in their advertising. If more people were aware of this government program, real estate sales would increase substantially. Not every home or buyer will quality for a rural development mortgage loan, but if they do they are getting one of the top mortgages with low interest rates on the market today.
Rural Housing Service (RHS) was created in 1994 as a result of the Department of Agriculture Reorganization Act to meet housing and community development needs.
More rural families and individuals are now able to become homeowners with the help of the Rural Housing Service Programs. There are various programs available to aid low-to-moderate income rural results to purchase, construct or repair a home. Rural development mortgages allow qualified homebuyers the opportunity to get loans with minimal closing costs and no down payment.
Section 502 Rural Housing Guaranteed Loan Program states that a loan guarantee through RHS means that, should the borrower default on the loan, RHS will pay the private financier for the loan. The rural development loan program’s purpose is to enable loan and moderate income rural residents to acquire modestly priced housing for the own use as a primary residence. There is also a program available to purchase and repair an existing or newly constructed home.
The Section 503 Single Family Housing Direct Loan Program states that individuals or families receive direct financial assistance from the Rural Housing Service in the form of an affordable interest rate home loan. Jaime Hunt explains, “loans are typically made for 30-33 years and eligibility is based on the family’s income.”
