USDA Mortgages-No Joke

January 9, 2009
Matt Isleib

 

Yes I said USDA mortgages. USDA, as in the United States Department of Agriculture. The program is an Agency backed loan to induce loans to Aid Rural Development. Even now is 2009 this mortgage still is offering a NO MONEY DOWN option.

 

It was created by the USDA to boost home ownership in rural areas. The terms are not the easiest to meet but here is a highlight of some of the terms to qualify. The borrower’s income cannot exceed 115% of the median county income; the loans themselves are restricted to areas of low population hence why they are rural type loans. Typically total residents cannot exceed 25,000.

 

There are some restrictions. The loans can go up to 102% financing. The 2% over 100% is the USDA insurance that can be financed and meant to cover any loan losses by the USDA. There is also no mortgage insurance associated with these loans which make them far more attractive than FHA loans if you fall into the criteria to qualify. I do not know how long these loans or programs will be around but if you think that you qualify, it would be wise to inquire sooner rather than later. As always you can contact me at the office 203-838-6760 or by e mail matt@eversleycapital.com