USDA Rural Housing Loans

mreeves28xx · Joined: 27 Oct 2008 Posts: 4 4.01 Dollars($)

Hi all. I was wondering if someone can tell me about the USDA Rural Housing Loans. I have been looking into buying a home for some time now. Problem I am running into is the homes I can afford all need work and they wont go FHA. I have a middle score of 655. Been at my job for almost 5 yrs and been in the same line of work for 13. I am married with 2 children, wife is unable to work so I am the sole provider for my household. I make 55k year salary and have been prequalified for a $180k.

I am trying to stay in the $750-$850 range as far as a mortgage payment goes. I was reading about the USDA Loans and how they can be as low as 1%. I went to their site http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageA ction=pageLoad&urlToLoad=http://www.rurdev.usda.gov/rhs/sfh/brief_rhgu ar.htm&NavKey=loan@21

and I qualify for their Guaranteed Loan program with a houshold of 4 with my income. I have talked to 2 different lenders about this and they dont seem to know much if anything about it. If I am able to get into this program I would be able to buy a home that doesn't need $15-$20k worth of work as soon as you move in. I guess or am hoping someone here can help me with understanding this better. Any and all help is appreciated. Thanks

Marvin

smithsussane · Posted: Sun Nov 09, 2008 7:22 pm Post subject:

Hi mreeves!

Welcome to forums!

Guaranteed Loan programs are also known as 502 loans and are available to people who have low income to purchase homes in rural areas. You can use the funds from this loan to build, repair, renovate or relocate a home. It can also be used to purchase and prepare sites, including providing water and sewage facilities.

The applicants for loans may have an income of up to 115% of the median income for the area. It should also be noted that families must be without adequate housing but will be able to afford the mortgage payments, including taxes and insurance. Applicants should also have reasonable credit histories. The loan is given for a 30 year period and the interest rates are set by the lender. No down payments are required.

Under this program, housing must be modest in size, design, and cost. The Rural Development officials have the authority to approve most Section 502 loan guarantee requests.You can contact them to get the loan.

Feel free to ask if you have further queries.

Sussane

jameshogg · Posted: Sun Nov 09, 2008 7:29 pm Post subject:

Hi mreeves!

I agree with Sussane. You can contact the rural development officials for the guaranteed loans. To know the median income of the area, you can have a look at given link below:
http://www.rurdev.usda.gov/rhs/sfh/sfh%20guaranteed%20loan%20income%20 limits.htm
Once you open the link, you will have to chose your respective state and come to know the median income of the state.

This community also has a number of lenders who offer different types of loan. You can seek a no-obligation free mortgage consultation from them. That may help you to get an idea about the loan that you can get.

Thanks

kpatrick · Posted: Sun Nov 09, 2008 8:12 pm Post subject:

And one of the best parts about USDA loans is that you pay no monthly MI payment which saves you at least $50 bucks a month.

Guest 0.10 Dollars($)

You have this wrong on here, Guys. The USDA Guaranteed loan is NOT done by the USDA directly; the DIRECT USDA loan is the one that they administer. You are giving incorrect information here!! I am a national trainer for USDA Rural Housing Loans and I also originate quite a few of these on my own and it is the DIRECT loan that is for the lowest income applicants. This gentleman qualifies for the GUARANTEED loan, he says in his post.

I work with loan officers and brokers across the country on this program and can refer you to someone that works them in your state.

Sue

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