BENEFITS OF THE USDA GUARANTEED RURAL HOUSING PROGRAM

• Provides 100% loan-to-value financing for existing homes or new construction based on appraised value.
• Available to low and moderate-income rural households.
• No requirement to be a "first-time" home buyer.
• Less up-front cash-to-close requirements for this program than for conventionally insured or FHA loans.
• No monthly mortgage insurance required. One-time guarantee fee, payable to Rural Development (RD) at closing, which may be financed above the appraised value, as follows:
  • Purchases - 2.00% of loan amount
  • Refinances - .50% of loan amount
• Fully amortized 30-year fixed-rate loans.
• No penalty for pre-payment.
• 2/1 Temporary Buydown available.
• No maximum loan limit. Loan limits are dictated by the applicant's income with respect to program eligibility and loan repayment ability. Previous ties to FHA loan limits have been eliminated.