In 1935, Franklin D. Roosevelt signed into law Executive Order 7027 establishing the Resettlement Administration for families who lost everything in the Great Depression, which started what we now know as USDA Rural Development.
Rural Development Loans work great for first time home buyer's. This is the loan my wife and I used to purchase our home and now that I have stepped off into the world of real estate, I really get a clear picture of the pro's and con's of different types of loans and know first hand that, if you qualify, this is a great way to get into a house if you had rather spend "down payment" money on a sweet
bass boat living room suite.
Rural Development (RD for short.....plus is a lot easier to pronounce) is basically what it says.... developing rural areas. While the city limits of Conway are not eligible, Greenbrier, Vilonia, Mayflower and other areas just outside of town, are eligible.
Have you ever heard of PMI or Private Mortgage Insurance? After the housing market collapsed, banks started adding PMI to mortgages as added protection (for themselves). While FHA has recently lowered the amount for this insurance, Rural Development Loans still has a lower amount of PMI added into the mortgage.
If you are thinking about buying a home, the best place to start, is to find a great real estate agent! They will help guide you in the right direction and have a list of local lender's (who know a lot more about loans than I do) and will get you in the right home with no money down!!
Contact me any time if you have any questions!
Shane Cato | 501-733-3479 | Like Us On Facebook