Who would have guessed it? The U.S. Department of Agriculture is in the mortgage business. And with a great program if you meet the requirements.
Here are the program hightlights:
No down payment needed.
Loan amount based on the appraised value.
If appraised value is higher than sales price, you can finance closing costs.
No monthly mortgage insurance.
There are property location restrictions.
There are income restrictions.
With this program, you can literally buy a home with no money in the deal. And you don't have any monthly mortgage insurance. How does this affect you? On a loan of $200,000, your monthly payment with an RD loan is $91.67 less than an FHA loan. That's huge!
If you would like to see if a home qualifies for a rural development mortgage, go to this web site and follow the prompts.
