USDA Rural Development
The Best 100% Mortgage in Missouri!
MY AVERAGE USDA HOME BUYER CAME TO THE CLOSING in 2018 NEEDING ONLY $131.00!
My LAST 6 USDA HOME BUYERS IN 2018 GOT SOME IF NOT ALL OF THEIR EARNEST MONEY DEPOSIT BACK AT CLOSING!
IMAGINE CLOSING ON YOUR NEXT NEW HOME - HAVING LITTLE TO NO MONEY OUT OF POCKET - POSSIBLY GETTING MONEY BACK ON THE DAY YOU OWN YOUR NEXT NEW HOME!
A Missouri USDA Guaranteed Rural Development Home Mortgage Loan is a flexible no down payment government insured program that is growing in popularity for rural areas of Missouri. It’s designed to promote home ownership for residents with low to moderate incomes and who have limited savings for a down payment. The USDA loan will actually lend up to the home’s appraised value and even allow the buyer to include closing costs AND MINOR repairs in the actual loan (appraisal permitting). A common misconception about the USDA loan program is that it’s for farmers, but this home loan is for you who want to purchase a primary residence outside the urban areas but you’ll find many suburban areas qualify for this program.
Benefits of a USDA Home Loan:
- 100% PLUS Financing
- No Down Payment
- No Mortgage Insurance (small monthly USDA service cost)
- Great Low FIXED Interest Rates
- Loan Amounts up to $417,000 (no real limit)
- No Cash Reserve Requirements
- UNLIMITED Seller Contribution Limitations
- 100% Gifted Closing Costs allowed
- 30 year low fixed rate loan
- No Prepayment Penalty
- Primary Residents only (no rentals/investments)
- Possible to roll closing costs and minor repairs into the loan (based on appraised value)
To qualify for this loan program, there are two notable requirements that differentiate this program from an FHA or VA loan program.
1. Location: The home must be located in a Missouri designated rural area click to check.
Nearly every county in Missouri is eligible for USDA Rural Development. But there are 19 counties in Missouri that have some areas that are not eligible or are completely ineligible. Click the link above and check the address of the home you are interest in to see if your next new home is eligible for a zero down payment mortgage. (if you would like for me to look up the property you have interest in please use the form below.)
2. Income Limits:
Must meet Missouri USDA adjusted annual household income limits (click the link) - a maximum 115% of the median income for your area. Meaning your total combined household income cannot be more than this amount.
Qualifying Income: It’s important to note that USDA uses two types of income for qualifying. Household income is the combined adjusted gross income of all people living in the home, regardless if they are applying for or will be on the mortgage. This amount cannot be higher then the county limits listed above. The other income used is the Repayment income. This is income from the actual loan applicants and determines the DTI (debt-to-income) ratio.
Maximum Loan Amount: USDA has not set a maximum loan amount but $417,000 seems to be the consensus by most lenders. Your max loan amount will be determined by your DTI (Debt to Income) ratio. USDA has set 41% as the max DTI, but will allow up to 47% with a GUS automated approval and a FICO score over 660.
Required Credit Scores: To obtain an automated underwriting approval decision through the USDA GUS underwriting system a minimum 640 MIDDLE credit score from all borrowers is required. If your credit score is below 640 it may be possible to get a manual underwriting approval but the middle credit score of ALL borrowers will need to be at least 620 or higher.
My name is Bob Rutledge and I am a USDA Rural Development and First Time Home Buyer Specialist. We have offices in St. Charles, St. Louis, Kansas City, Springfield, Columbia, and Cape Girardeau, we have you and the entire state of Missouri covered. I have closed USDA loans in Springfield, Joplin, Sikeston, Jackson, Cape Girardeau. Kirksville, Bowling Green, Sullivan, St. Clair, Jefferson City, Columbia, Mexico, Washington, Beauford, Owensville, Popular Bluff, Branson, Buckner, Odessa. Well, you get the picture, there's just about no county in Missouri that I have not helped a new home buyer get a home for zero down payment and with little to zero out of pocket costs. I can help you too get your next new home with little to zero out of pocket expense, the best way to buy a new home!
If you have questions or need help regarding USDA Rural Development or anything about a new mortgage please feel free to contact me at any time.