USDA Rural Housing is a great financing program since it allows for Zero down payment for the purchase of an owner occupied property.
Other program guidelines are:
**Buyer can not own any other real estate.
**Household income guidelines must be met based on county of property location and household size.
**Seller can contribute to buyers closing costs or it can be a gift. Depending on appraisal value closing costs may also be rolled into the loan.
**There is a 2% guarantee fee- similar to FHA’s Upfront mortgage insurance- that’s rolled into the loan on top of the sale price.
**There is a minimal monthly mortgage insurance of .30.
**It’s a 30 year fixed rate. There is no USDA Rehab/Renovation loan available.
**Eligibility based on property location.
This is the link to family income guidelines based on county and where you can enter an address and see if it’s eligible for USDA financing.
I’ve done quite a few of these and for the right buyer it’s a great option to get into a home with very little out of pocket cash.
I look forward to working with your clients!! Call me to see if your listing qualifies for USDA Rural housing!