Many people call this program the first time homebuyer's program. This is due to not having a up front down payment requirement. The first time homebuyer often doesn't have available cash reserves to pay the down payment required for many other loan programs.
USDA Rural Development Mortgage Highlights
When buying a home with the USDA Rural Development loan program, the home must meet certain basic requirements.
Myth - You can’t have previously owned a home or currently own a home.
Fact – If you have outgrown your current home or have a job transfer over 60 miles from your currently owned home, you can qualify for a new RD loan.
Myth – You can’t have more than 20% down in liquid assets.
Fact – There is no limit on liquid assets now.
Myth – You can’t have more than 5 acres.
Fact – Properties can have up to 20 acres now.
Myth – There can’t be any pole buildings or sheds on the property.
Fact – Properties can have both pole buildings and sheds.
Myth - You can’t have any past or present negative credit.
Fact – Minimum credit scores of 620 can be considered. You can be 3 years out of Chapter 7 Bankruptcy or immediate consideration out of Chapter 13 bankruptcy if all repayments are complete.
Before you rule out the $0 down payment RD program give the mortgage experts a call at Concorde Mortgage Company. Our many years of lending experience with the RD program can help you sort through all of the myths about this program.
620 to 639 Credit Scores – Manual Underwriting
640 Plus Credit Score
Based on number of people living in home.
$ 103,500 $136,600
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