Things to know about!
USDA: Rural Development
Guaranteed Rural Housing Program
- Must be a fixed rate loan for 30 years
- Must be compliant with VA rate plus 60 basis points
- No maximum mortgage limit
- Adjusted Income Limits:
1 to 4 people: $74,050
5 to 8 people: $97,750
New Castle County:
1 to 4 people: $89,500
5 to 8 people: $118,150
- You must be planning to occupy the dwelling on a permanent basis
- Can not presently own a dwelling in the local commuting area (within 50 miles from present employment).
- You do NOT have to be a first time home buyer.
- The home must be in an eligible rural area, please check website for eligibility. http://eligibility.sc.egov.usda.gov
- No minimum credit score but there are unacceptable indicators.
- Credit score of 620 or higher qualify for streamlined documentation. This means no documentations or explanations will be required for any problems on credit history (except Federal debt or Agency Loan).
- Credit is always evaluated on a case by case basis.
- A guarantee fee of 2% is charged by the Rural Development to the total loan amount.
- This fee can be included in the loan, so the maximum loan amount may be 102% of the appraised value.
- Closing costs & lender’s fee may also be included in the loan amount, but only if the appraisal value of the property allows.