USDA Rural Housing Guaranteed Mortgage

There are still a few mortgage programs that allow people to purchase a home in the state of Connecticut and other states with no down payment.  These typically are loans that are insured or guaranteed through a department of the United States government.  One of the programs that we love to utilize is the United States Department of Agriculture’s Rural Housing Guaranteed Loan*. 

100% Financing Opportunities!

The mission of the USDA’s Rural Development’s Single Family Housing Guaranteed Loan Program is to assist low to moderate income rural homebuyers achieve their dream of homeownership.

About 65% of the state of Connecticut falls within the eligible area for the program.  Typically, it is for municipalities with census’ less than 18,000 people.  However, each town and address is different and can be checked by a USDA Rural Housing mortgage originator pretty quickly.  Some of the towns that fall within eligible areas in Connecticut that may surprise you are towns such as Avon, Canton, Prospect and more! 

How Do I Qualify for the USDA Rural Housing Guaranteed Mortgage?

 

Three Easy Things

Items to note about the USDA Loan Program

  
  • Property Eligibility
  • Below Income Restrictions
  • Good Credit
  • Can't own other properties
  • What features make a home ineligible
  • You don’t need to be a first time buyer
  

USDA loans are unique in that both the borrower and the property location must qualify for the program. First, the property must be located in a USDA-eligible area. To find out if a property’s location is eligible, contact a USDA home loan specialist by completing this short questionnaire.

USDA loans are unique in that both the borrower and the property location must qualify for the program. First, the property must be located in a USDA-eligible area. To find out if a property’s location is eligible, contact a USDA home loan specialist by completing this short questionnaire. - See more at: http://mymortgageinsider.com/usda-mortgage-loan/#sthash.QS3FGBXk.dpuf

Why is the 100%

Rural Development partners with approved local lenders, like Village Mortgage, to extend 100% financing opportunities to eligible rural individuals and families to achieve the dream of homeownership. Guaranteed loans have assisted thousands of homeowners to purchase a home with affordable interest rates and loan terms.

  • 100% financing, no down payment is required. The loan amount may not exceed 100% of the appraised value, plus the guarantee fee may be included.
  • Guarantee Fee applies: may be rolled into the loan amount.
  • Flexible credit guidelines. Non-traditional credit histories may be accepted.
  • Fixed 30 year interest rates apply.
  • Qualifying ratios are 29% for housing costs and 41% for total debt.
  • No maximum purchase price. Qualifying ratios and the applicant’s stable and dependable income will determine home affordability.
  • Eligible property types include existing homes, new construction, modular homes, Planned Unit Developments (PUD’s), eligible condominiums and new manufactured homes.
  • Eligible closing costs and lender fees may be included in the loan or paid by the applicant.
  • Gift/Grant Funds/Mortgage Credit Certificates (MCC’s)/Seller Concessions are allowed.
  • Eligible repairs and improvements may be included in the loan.

 

FREQUENTLY ASKED QUESTIONS

What type of properties are eligible?

The property must be a single unit.  This includes planned unit developments, condominiums and single family homes. 

Income restrictions

This loan is to help low and moderate income households.  The income restrictions are based on town and county median income.  Your approved USDA RD mortgage originator can look up and calculate your household income.  If you have a senior living with you or have children or pay child care, there are guidelines that allow for you to make more than the stated income limits.  The base way to know is to get in touch with an approved USDA RD specialist that  can walk you through the eligibility or you can fill out a short form to calculate your eligibility FORM.

Credit standards

The USDA RD program is a 100% financing program so credit history and your rating are important.  This loan is geared towards people that pay their bills on time.  While it does allow for occasional credit hiccups, underwriters will look to make sure the borrower has demonstrated the willingness and responsibility of managing credit.

Mortgage insurance

Here’s where the USDA RD program seperates itself from the rest of the pack.  Mortgages with less than 20% down payments invested into a transaction generally require mortgage insurance.  On USDA RD loans, this is known as the Guarantee Fee.  In the table below, we compare mortgage insurance and the Guarantee Fee for loans requiring less than 5% down –

Mortgage Type

USDA RD

FHA

CHFA

Up-front MIP/GF

2%

1.75%

1.75%

Annual Renewal

.4%

1.35%

1.35%


The only loan requiring less than 5% down with lower monthly mortgage insurance fees is the VA loan, only eligible to those serving or who have served in the military.  If you have military experience, we should be looking at the VA home loan which you can learn more about by clicking here.

Apply for a 100% Financing USDA Guaranteed Home Loan Here!

Start the process of purchasing your dreamhome with a USDA loan at Village Mortgage. We will work with you to get you pre-qualified and let you know the areas in which to look for a home. Complete this short inquiry form here and we’ll give you a call.

* Village Mortgage Company is not affiliated with or acting on behalf of or at the direction of the USDA or the Federal Government.

Apply for a USDA loan here

Start the process of purchasing a home with a USDA loan here at MyMortgageInsider. We can get you pre-qualified and let you know the areas in which to look for a home. Complete the short inquiry form and we’ll give you a call.

- See more at: http://mymortgageinsider.com/usda-mortgage-loan/#sthash.QS3FGBXk.dpuf
Start the process of purchasing a home with a USDA loan here at MyMortgageInsider. We can get you pre-qualified and let you know the areas in which to look for a home. Complete the short inquiry form and we’ll give you a call. - See more at: http://mymortgageinsider.com/usda-mortgage-loan/#sthash.QS3FGBXk.dpuf

Apply for a USDA loan here

Start the process of purchasing a home with a USDA loan here at MyMortgageInsider. We can get you pre-qualified and let you know the areas in which to look for a home. Complete the short inquiry form and we’ll give you a call.

- See more at: http://mymortgageinsider.com/usda-mortgage-loan/#sthash.QS3FGBXk.dpuf

Apply for a USDA loan here

Start the process of purchasing a home with a USDA loan here at MyMortgageInsider. We can get you pre-qualified and let you know the areas in which to look for a home. Complete the short inquiry form and we’ll give you a call.

- See more at: http://mymortgageinsider.com/usda-mortgage-loan/#sthash.QS3FGBXk.dpuf

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