Benefits Of The USDA 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.
- Less up-front cash-to-close requirements for this program than for conventionally insured or FHA loans.
- LOW monthly mortgage insurance.
- One-time guarantee fee, payable to Rural Development (RD) at closing, which may be financed above the appraised value, as follows:
- Purchases - 2% of loan amount
- Refinances - 1% of loan amount
- Appraiser required repairs can be rolled in to the loan, up to the appraised value.
- Fully amortized 30-year fixed-rate loans.
- No penalty for pre-payment.
- 2/1 Temporary Buydown available.
- Loan limits are dictated by the applicant's income with respect to program eligibility and loan repayment ability.
