Section 502 Housing Loans
More rural families and individuals may be eligible to become homeowners with the help of a U.S. Department of Agriculture (USDA) Rural Development guaranteed loan. Sometimes good credit and a steady income are not enough to qualify at a commercial lending institution, like a bank or savings and loan. A sizable down payment may also be required. When the Federal Government agrees to guarantee a loan, lending institutions can help buyers while incurring little risk. Through the Guaranteed Rural Housing Loan Program, low and moderate income people can qualify for mortgages even without a down payment.
â€¢ Must have an adequate and dependable income.
â€¢ Must be a U.S. citizen or be legally admitted to the United States for permanent residence.
â€¢ Must have an adjusted annual family income that does not exceed 115 percent of the median income for the area. Each USDA Rural Development office can specifically calculate that limit. (Adjusted annual income is determined by subtracting $480 for each minor child. Childcare deductions can also be deducted.)
â€¢ Must have a credit history that indicates a reasonable willingness to meet obligations as they become due.
â€¢ Must have repayment ability based on the following ratios.
â€¢ Must be unable to secure conventional credit.
If you would like more information please let me know.
Regal Realty, LLC