USDA Rural Housing Loan Program

Not looking to lead a city-centric life? If you like the elbowroom and freedom that life in a rural area offers, the USDA Rural Housing Loan Program may be a good fit. Read through the details below, and be sure to ask our friendly Mortgage Team any questions you may have!

Guidelines:

LOAN FEATURES:

  • 100% financing available
  • Guarantee fee requires additional disclosures
  • Annual guarantee fee of 0.35% for all transactions
  • Full appraisal required. Appraiser must be HUD approved

PROPERTY:

  • Must be in a rural area as determined by USDA Rural Development. (Website – http://eligibility.sc.egov.usda.gov) Minimum loan amount $35,000.
  • No Condominiums
  • No Manufactured homes
  • The property must be non-farm, non-income providing tract.
  • Appraisals are valid for 120 days for both new and existing construction.

INELIGIBLE AREAS:

FLOOD INSURANCE:

  • Existing homes in special flood hazard areas are eligible.

INCOME:

  • Borrower must be within income limits. Refer to: http://eligibility.sc.egov.usda.gov for validation.
  • All qualifying income must be stable and likely to continue for the next 3 years.

CREDIT:

  • Credit 640 minimum – No exceptions. All borrowers must have a minimum of 2 credit scores (borrower with one credit score is unacceptable).
  • Student loans must be counted in qualifying regardless of deferment status.

UNDERWRITING:

  • All loans must be approved through USDA.
  • Not required to be a first-time homebuyer. If borrower owns another home must not be USDA financed.
  • Escrows required.
  • Closing costs maybe included in the loan up to appraised value when the sales contract is lower than the appraised value.
  • Borrower must be a U.S. Citizen or Permanent Resident Alien.

REFINANCE:

RATE/TERM (Non-Streamlined)

  • Only USDA Guaranteed loans eligible (no Direct loans)
  • Current appraisal required. No transferred appraisals allowed.
  • Guarantee fee requires additional disclosures
  • Subject property must still be the borrower’s primary residence.

STREAMLINED REFINANCE

  • Only USDA Guaranteed loans eligible (no Direct loans)
  • The value of the new mortgage loan request can be supported by the original appraisal report obtained in connection with the existing mortgage.
  • The maximum loan amount may not exceed the original loan amount at the time of purchase.
  • Guarantee fee requires additional disclosures

There are a lot of options to consider, but you’re not alone in this! Don’t hesitate to reach out to our Mortgage Team, visit one of our convenient locations, email us or call: 855-CRESCOM (273-7266) for help. 

Apply For A Mortgage Today

NMLS #462560

CresCom Bank

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