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USDA Rural Development in Missouri The Best Zero Down Payment Mortgage

October 16th, 2011 2:36 PM by Bob Rutledge

Are you looking to purchase a home in a rural community, but wondering where to begin looking for help with a home mortgage? Good News! The U. S. Department of Agriculture (USDA) has a home loan guarantee program that can help you obtain a home loan mortgage. The USDA Rural Development mortgage program offers to qualified borrowers residential home loans in rural communities. With the help of this mortgage program you can be living in a new home with little or NO MONEY DOWN!

Established in 1949, the USDA Rural Housing Loans program of the US Department of Agriculture has helped more than 2.7 million rural citizens take advantage of the opportunity of to own a home. For over half a century, the program has formed partnerships with carefully selected lenders in each state. In turn, the lenders provide the loans with a repayment guarantee from the USDA, in case the loan should ever default. The USDA backing means that loans are less risky to mortgage lenders who can proceed with confidence and offer home financing to those individuals who meet the USDA Rural Development guidelines.

For those who qualify a USDA mortgage can offer many advantages over other home loan programs available in the marketplace. Here are 10 reasons to consider a USDA Rural Housing Loan:

1. This is one of few zero money down mortgage programs available to borrowers outside of the military. The 100% financing option is one of the most attractive features of a USDA mortgage, as it can be tough for first time home-buyers to come up with a five, ten, or even twenty percent down payment when purchasing a home.

2. Borrowers are required to take out private mortgage insurance, this is a very recent change. But, the monthly mortgage insurance factor is .3 percent as opposed to FHA monthly mortgage insurance factor of 1.15 percent.

3. Combine USDA / Rural Development zero down payment with down payment assistance or lender paid closing costs to purchase a new home with little to nothing out of pocket.

4. No maximum purchase limit. The USDA Rural Development mortgage has no maximum purchase price limit.

5. Families with lower incomes and those with less than perfect credit may be able to qualify. In fact, this program is specifically for those with lower incomes, and borrowers who make above a certain amount (varies by county) may not qualify.

6. Competitive 30-year fixed rate mortgages make for lower monthly payments that are geared towards ensuring the successful repayment by borrowers.

7. USDA mortgages are intended to finance "modest dwellings", which can help buyers avoid purchasing a home that is above their means.

8. Less restrictive underwriting guidelines. Borrowers must still provide a credit history report. But the flexible guidelines allow potential homeowners with spotty or bad credit to still qualify for a home loan.

9. Seller paid closing costs are permitted, up to a certain percentage of the loan amount. This can enable a home purchase with few up front out of pocket expenses.

10. Homes that are "fixer-uppers" may qualify for extra funds for rehabilitation. Home repairs can be included in loan. Looking to purchase a "handyman special" home? Homes that need refurbishing or rehabilitation may qualify for extra funds to be included in the home loan mortgage to go toward repair costs.

Who is eligible?

Any individual or family who plans to occupy a home located in an eligible rural area as their primary residence may qualify for a USDA Rural Development home loan. An applicant for the USDA mortgage guarantee loan must provide sufficient income verification and a credit history that indicates an ability and willingness to meet repayment obligations. An individual or family must show proper legal capacity to own property in the U.S.A., own no home or dwelling currently, and have insufficient resources to qualify for a conventional home mortgage.

It is important to understand that not everyone will qualify for a USDA mortgage. The property must be located in an area that is designated as "rural" by the USDA, and the loan amount must fall within allowable limits (varies by county.) The borrower must meet the guidelines for eligibility and be able to show based on their income and credit history that they will be able to repay the loan as agreed. For those who qualify a USDA Rural Housing loan can help make cost effective home ownership a reality.

How to get started

USA Mortgage is the number 2 USDA Rural Development lender in the State of Missouri; let our experience and ability go to work for you. Allow me to show you how to purchase your next new home with zero down payments and have your closing costs paid for you. Zero down payment plus zero closing costs equals a new home with your savings in your pocket.


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Posted by Bob Rutledge on October 16th, 2011 2:36 PM


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