Since News Channel 36 did a report on USDA Rural Development loans last week, it has been a HOT topic in our area.  I've helped my clients utilize this program for years, so I decided to share the basics concerning USDA Rural Development loans in Rowan County North Carolina. 

The USDA Rural Development agency (yes, the United States Department of Agriculture) has two different loan programs, Direct and Guaranteed.  Eligibility for both types of Rural Development loans is determined based on household size, income and the buyer's credit worthiness.  Both programs are 100% (NO DOWN PAYMENT) loans with NO MORTGAGE INSURANCE.  FHA loans and Conventional loans with less than 20% down payment require mortgage insurance, which is based on your loan amount and added to your payment each month... so no mortgage insurance is quite a savings to buyers.

The Rural Development Guaranteed loan program is for low to median income buyers.  In Rowan County (as of April 20, 2009) buyers with 1-4 member households can make up to $73,750 and buyers with 5-8 member households can make up to $97,350.  Buyers apply for this loan program with an approved lender (not with the agency directly).  For more details about the Guaranteed loan program, read my blog USDA Rural Development Guaranteed Loans... One of the Few 100% LTV - No PMI Loans Available or contact me directly anytime.

The Rural Development Direct loan program is for low and very low income buyers and subsidizes the mortgage payments of qualified individuals.  I've personally seen buyers purchase a home with a full total payment of approximately $800 per month, but they paid below $500 per month (approximately $300/month subsidy).  For more details about the Direct loan program read my blog USDA Rural Development DIRECT Loans - Subsidized Payment Loan Program or contact me directly anytime.

The biggest catch with Rural Development loans is that the home must be located in an "Eligible Area".  In Rowan County that means the property can be located in "County tax ONLY" areas, China Grove, Rockwell, Granite Quarry, Cleveland and Faith.  The city limits of Salisbury, Kannapolis and Landis are NOT eligible areas.  To check a property address for program eligibility click the following link... Rural Development eligible area. 

If you are interested in purchasing a home using a USDA Rural Development loan, I can set up a Personal Home Search Website for you, that will target homes located in areas that are eligible for a USDA Rural Development loan.  I have extensive experience helping buyers purchase a home using both of the Rural Development loan programs. 

So, if you are looking for a home in Rowan County or anywhere in the Charlotte area CONTACT Cheryl Powell today at 704-363-8902.  Let's get started finding your new home!