USDA RURAL DEVELOPMENT LOANS OFFER 100% FINANCING
I recently sat down with Craig Boudreaux , loan officer, with Louisiana Mortgage Associates. Craig gave me an overview of USDA Rural Development loans and why they are so popular in our current real estate market.
A Rural Development loan is a 100% financed 30 year fixed government loan available to individuals with a minimum 620 credit score or higher. Income limitations for a family of 4 or less cannot exceed more than $73,600 per year. There is no monthly mortgage insurance premium and the home must be in an eligible area determined by USDA.
Craig shared with me, "Most people are surprised to learn that this 100% financing is available for Lake Charles homes South of Gauthier Road." Craig added, if a buyer has a question about whether the home is in an eligible area, they can call him drectly 337-661-1741 and he will verify the address on the USDA eligibility website map.
"What makes this such a great loan in our market right now is the fact that buyers are allowed to ask the seller to contribute up to 6% of the home purchase price toward the buyer’s closing cost expense."
The USDA Rural Development loan is an excellent option for first time home buyers. Craig added that even recent college graduates who have 1 month on the job can qualify for 100% financing. All that is needed is 30 days of pay stubs, a copy of your diploma and a minimum credit score of 620 to qualify.