Evidence that the USDA Rural Housing program works to get qualified buyers into homes can be found by checking out their foreclosure website. Our office is in the Panhandle of Florida, and between here and Tallahassee (Leon) County, there are a total of 5 properties that are in foreclosure.
I have been using this program for over 10 years and based on the number of properties that have sold under it, this low number of foreclosures represents USDA's committment to making sure that the buyers who use this program show an ability to repay the mortgage
A USDA Rural Housing loan allows a client to finance the entire sales price PLUS any and all closing costs and prepaids that the seller isn't paying. A seller is not limited to 3% or 6% and can, in fact, pay all of the closing costs and the prepaids for the buyer. It truly is a no money down program for qualified buyers.
If a buyer's credit and/or debt to income ratio doesn't qualify for this program, there is a Direct USDA Rural Housing mortgage which allows lower income families to purchase a home at a payment that they can afford; sometimes, their payments are subsidized. If your lender tells you that you do not qualify, please ask them to give you the contact information for this program!
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