USDA has announced that funding is now available for the Rural Housing/Development Program.
There has been some changes to the loan structure that increase your initial loans fees at closing. However, the majority of approved USDA Rural Development loans will require a 3% Seller concession to help cover most all your closing fees.
This program is excellent for the Buyer with little to no down payment. Certain eligibility requirements, depending on the area in which you live, and/or buying your home have to be met.
Remember:
Not all lenders handle USDA loans.
Here are some of the new changes:
•· USDA has increased the Guarantee Fees as follows:
•o Purchase: From 2.0% G-Fee to 3.5% G-Fee (example- $100,000 loan previously had a 2%-$2000 upfront fee and now it will be 3.5%-$3500)
•· Rural Housing Guidelines have been updated to reflect new credit requirements:
•o Minimum Credit Score of 620
If you are interested in knowing more about USDA Rural Development loans and what homes and areas are eligible, my team would be happy to help you. Also, we have a lender who specializing in these loans that works with our team. Please visit our website to get more information about how we can help you in the search for your new home using USDA Rural Development funds. Our site has a direct link to the lender for pre-qualification, your first step to owning your new home.
Sellers - this affects you as well. If your home is located in an eligible area for USDA loans, make sure your listing agent advertises that as a selling feature.
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