The USDA'S office of Rural Development works with approved lenders to guarantee loans to borrowers for single family homes in eligible areas. The purpose is to provide financing - with no down payment, at favorable fixed rates on a 30-year term. The reasons lenders choose to work with RD are many. Since loan guarantees issued by RD are backed by the full faith and credit of the U.S. Treasury, many lenders consider RD programs to be relatively risk free. Also, loans made possible by partnerships with the approved lenders to improve the economic health of rural communities. The continued well-being of rural areas provides more opportunities for lending institutions that invest in these communities.These no down 100% financed loans are by far the best option available for home buyers on the market today they simply can not be beat.
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The Senate is slated to begin debate on an emergency appropriations bill Monday afternoon that includes a provision to get the Rural Housing Service program up and running again. The measure would allow the RHS to increase its current 2% upfront premium to 3.5% and make the single-family program self-funding. It would free RHS from the appropriations process and from seeking annual renewal of its loan commitment authority. RHS ran out of loan commitment authority on May 17. Some lenders are still using the program but only because the money has been committed, though not used. RHS is a key program for rural lenders of all stripes but also mega banks like Chase Home Finance. The emergency appropriations bill (H.R. 4899) is practically guaranteed to pass.And Congress wants to pass this bill before the Memorial Day recess. It represents the fastest legislative vehicle to fix the RHS program. The House has already passed a RHS reform bill, sponsored by Rep. Paul Kanjorski, D-Pa., that increases the upfront premium to 4%, which means House appropriators likely will not object to the inclusion of the RHS provision in H.R. 4899. A home purchased through the USDA home loan guarantee program must be located in a qualified rural area. Qualified rural area is defined as open country places, and homes in cities with populations of 10,000 or less. Under certain conditions, the home may be located in towns and cities of 10,000 to 25,000 in population. If you have questions regarding whether a potential home is in a qualified area speak with a representative from a USDA Rural Development field office or one of the staff at Essex Mortgage Bank toll free 1-877-870-2676. For a majority of my local Sonoma County residents this loan was made just for you now is the time to take advantage of it.Below are the areas that will qualify for this loan program. Excluding Santa Rosa up to Larkfield, Rohnert Park/Cotati, City of Sonoma and Petaluma, the rest of Sonoma County is eligible. Included are communities like Healdsburg, Sebastopol, Cloverdale, Windsor, all Russian River area, Graton, and the Sonoma valley along hwy 12 into the city of Sonoma. This program, allows a 6% seller credit, requires no reserves, FICO scores can be as low as 620, and it can be used for a single family home and the best part of it all it requires no mortgage insurance.The normal qualifying income ratios are 29% / 41%. You can exceed these ratios if you have scores above 660 and you don't have to apply for a debt-to-income waiver. Those below 660, you'll have to have compensating factors and apply for an income ratio waiver. The appraisal is done by a HUD certified appraiser and all section one items need to be cleared. Should you have any questions in regards to when this loan will become available the seller down payment assistance and/or your credit and income qualifying ratios feel free to give me a call toll free at 1-877-870-2676 or view more details on this and all of my other loans programs at http://www.fhasubmissions.com and ask for branch manager Jeffrey Martino Young
