U.S.D.A mortgages (United States Department of Agriculture) are meant to promote homeownership in areas deemed “rural” by the Federal government. They are also referred to as “rural development loans or “RD” loans. Here are the features:
Requires no money down
Owner occupied only
Eligibility based on household income (a family of 4 can have household income of up to $74,650.00) and the house must be in an eligible (rural) area.
Closing costs can be rolled into the loan up to the appraised value
Credit scores for the most part must be at least 640
The seller can pay up to 6% of the sales price towards buyer’s closing costs and pre-paids.
For more information or to see if the property you are interested in is eligible please contact us or visit www.usda.gov and click property eligibility
You do not have to be a first time home buyer, however, in most circumstances you cannot own another home simultaneously