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 Realgeni
Joined: 13 Apr 2009
Posts: 1434
99.76 Dollars($)
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Posted: Tue Apr 28, 2009 6:36 pm Post subject:
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They are, in fact, 2 different loans - one with the US Dept of Agriculture and the other with the Fed Housing Admin, or HUD.
Both programs are government programs. Only USDA goes to 100% and has no MIP or PMI.
- To be eligible for rural housing is based on geographic location.
-The cool part about Rural development is that if you have $100,000 purchase price but the appraisal came in for 103,000 you can have a loan amount of $103,000 and roll the $3,000 to the closing costs. That's the niche that RD has.
-And the underwriting actually is not much different from a regular FHA loan. Very similar.
General Program Requirements
In order to qualify for this benefit program, applicants must have very low-, low- or moderate incomes. Very low-income is defined as below 50 percent of the area median income (AMI); low-income is between 50 and 80 percent of AMI; moderate income is below 115 percent of AMI. Families must be without adequate housing, but able to afford the housing payments, including principal, interest, taxes, and insurance (PITI). Qualifying repayment ratios are 29 percent for PITI to 41 percent for total debt. In addition, applicants must be unable to obtain credit elsewhere, yet have an acceptable credit history. You must also be a US citizen or permanent resident |
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dilipgagare
Joined: 26 Mar 2009
Posts: 58
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12330
Location: bloomfield, ct
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