After a year where funding was sporadic for the Rural Development Guarantee Loan Program in 2010 funding has returned for 2011. According to the latest bulletin there is ample funding for purchase loans in the State of Maine at this time.
What is the Rural Development Guarantee Loan Program? This is a government program provided by most local lenders, including Northeast Bank, which allows homebuyers an opportunity to obtain 100% financing for a purchase. No down payment is required for borrowers who qualify. This program helps make the dream of homeownership a reality for so many people who do not have access to thousands of dollars for down payment and closing costs.
In this real estate market many buyers will find that a new mortgage payment can be comparable to what they are currently paying for rent.
How do I qualify for a Rural Development Guarantee Loan? The best thing to do is contact your local lender. The basic guidelines for the program require that a buyer occupy the property he or she is purchasing as a primary residence. The subject property cannot be a multi unit or contain an in-law apartment. The buyer(s) must meet the income guidelines; contact your lender for specific income limits in your area. Also, the property must be in a designated "rural area." Lucky for us, almost all of Maine is considered rural. Your local mortgage specialist can show you which areas do not qualify for this type of financing and review the additional program requirements.
Are there credit score requirements? Of course there are. However, they are not as restrictive as many conventional mortgage loans that require a down payment. This program can also be combined with Maine State Housing for first time buyers which offer additional opportunities for lower interest rates and grant money.
If you're interested in taking advantage of the opportunities this real estate market presents and this program presents send me an email and we can discuss the details together in person or over the phone.
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