Not many Realtors in Concord NC and the surrounding areas are aware of this great loan program offered by the USDA. I suspect the same is true in other states across the country. This program is very similar to the Farmer's Home Administration Loans that used to be offered by the USDA.
USDA Rural Development Loans are available for low to middle income owner occupant borrowers. It is a 100% loan to value program... that's right there are still a few NO MONEY DOWN programs available. This loan also has NO PMI!
Only a few lenders are qualified to underwrite these loans, so make sure to check out the List of Approved Lenders.
Here's a list of eligibility requirements:
Buyer must occupy the property as their primary residence.
Buyer cannot currently own an adequate home.
Buyer cannot have sufficient cash for a 20% down payment plus pay typical loan closing and relocation expenses.
Buyer must be a U.S. citizen, a U.S. non-citizen national or a "qualified alien".
Buyer must have a stable and dependable income for repayment ability.
Buyer must have a credit history that indicates a willingness to meet obligations as they become due.
Buyer must have an adjusted household income that is within Rural Development guidelines based on the number of persons who will occupy the home.
The property purchased must be a residential property that is located in a Rural Development eligible area.
One of the biggest hurdles in getting a home using a USDA Rural Development Guaranteed Loan, is finding a home that is located in a Rural Development eligible area. Location restrictions vary from county to county; some counties are completely eligible (such as Lincoln County NC), in some counties the property needs to be in a County Taxes Only area (such as Cabarrus County/Concord area NC), and in some counties only small portions are excluded (such as Iredell County/Mooresville area NC).
So, when helping a buyer purchase a home using this financing program, it is important to investigate the eligible areas within the county/counties where your client wishes to live and set up your property searches accordingly. Also, you and/or your client can check the eligibility of a property by visiting the Rural Development eligible area map online. That way, you won't waste a lot of time looking at properties that won't qualify.
I've helped several buyers purchase homes using this program, it works great and can help a buyer qualify for a more expensive home since there is NO PMI! Plus, if a buyer doesn't have any money for a downpayment, there currently aren't many other options for 100% financing programs available. If you have any questions about this program check out their website or contact me anytime.
Has anyone else helped a buyer get a home using this program?
Thanks for sharing some of SunTrust's special loan programs and reminding us all of how important VA and FHA loans with a dpa program are to buyers in the current mortgage climate. I need to get more information on the Portfolio Loan Program that you mentioned.
I look forward to hearing about your other special loan products! 
If you need further information don't forget to call your local USDA Rural Development office and request an information package, the information provided is really helpful. Good luck with your client!
That's great that you do so many Rural Development Guaranteed Loans, I think that it is a GREAT program as well.
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Hi, Cheryl,
Thank you for that interesting blog. I had heard of this program but didn't know much about it. I've tried to check out the lenders for this program on the link you gave, but it keeps coming up blank. Any suggestions? Right now I have a rural property that might qualify. Do you know if the program covers manufactured homes on real permanent foundations?