FHA and Rural Development Loans in the last 2 years have been the staple in my market. Over 60% of home buyers closed in 2009 were one of these loans. Why? Because these loans options continue to provide 1st time home buyers the ability to buy a home with as little as 0% down.
FHA LOANS
Just 5 years ago it was rare to see a buyer use FHA financing for two reasons. First because there were so many other options available with less closing costs. Second because many markets home values were surpassing FHA loan limits in areas. Which made obtaining an FHA loan in good school districts impossible.
There are many benefits of using FHA loans now. Mainly, Buyers with less than perfect credit can still get FHA loan approval. Credit scores can be less than those approved for conventional loans.
RURAL DEVELOPMENT LOANS
Rural development loans were designed to help families attain home ownership in rural communities with populations of 20,000 or less.
Either loan program is a win win in any community.
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