- Technically a Conventional Loan with a Government Guarantee to investor
- 100% financing in Rural Development Eligible Areas (we can check property)
- Typically, a 620 minimum credit score; some exceptions
- Credit score, debt ratio and risk have little impact on Rate and None on PMI (Private Mortgage Insurance)
- Income Restricted ($110,650 for 1-4, $146,050 for 5+) all occupants of homes income are considered.
- PMI is based on .35bps (example 100,000 loan would carry $350/yr. in PMI or 29.16/mo.)
- PMI is for the life of the loan.
- New Construction Options
- Single Family and Manufactured Homes (Doublewides and Larger). Must be owner occupied, primary residence only.
- DTI (Debt to Income) ratios should be 29% on house (front end) and 41% on total (back end); some exceptions made with higher scores and compensating factors.
- Cannot own another property without meeting certain conditions.
- Longer closing timeframes (sometimes) due to RD Commitment Review
- Seller can pay all customary closing costs.
- Upfront RD Guarantee fee financed into the loan 1.0% of loan amount.
- Can be combined with CAFA (Capital Area Finance Authority in Louisiana), LHC (Louisiana Housing Corporation) (SFH)
*30-year USDA (U.S. Department of Agriculture) Fixed-Rate Loan: An interest rate of 3% (3.642% APR) on a $200,000 mortgage, you would make monthly payments of $911.00. Monthly payment does not include taxes and insurance premiums. The actual payment amount will be greater. Payment assumes a loan-to-value (LTV) of 100%.
