I recently had a buyer who qualified for one of Â the Rural Development Housing Loans.Â Never heard about this before, I decided to look into it a little closer.
The Rural Development (RD) Housing programs work with State and Local Governments to help improve the quality of life for rural Americans by providing them with affordable homes.Â RD housing programs are designed to finance new or to Â improve the Â housing for the low to moderate income families who wish to live or remain Â in the rural towns and cities.
Financing is available with no downpayment, sometimes no PMI, Â and with favorable rates and terms.Â There are two types of home loans: Guaranteed and Direct Loans.Â
Guaranteed loans are available to qualifying individuals who would not be able to get a conventional loan without it being guaranteed.Â Â RD will guarantee these loans, making individuals able to get loans from other lenders.Â One of the qualifying factors of a guaranteed loan is the income guideline,Â which you will need to fall into a specific income bracket based on 1-4 people or 5-8 people.
Â Direct loans are where the individuals receive the loan directly from the USDA.Â With this, the loan payments are based on income and the individual must be unable to obtain a conventional loan through a bank or other lender source.
Mansfield, Taunton and Norton are just examples of rural areas where individuals may qualify.Â Contact Cheryl Cahill, Cross Real Estate, 508-369-3809.