Archive for the 'Loan Products' Category

Is a USDA Rural Home Loan Right For You?

If you wish to purchase a home and do not have money for a down payment, a USDA Rural home loan may be the right choice for you. This program is for low to medium income buyers with a household income up to 1.15% of the median income for the area.
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Program highlight include:

  • Loan term – 30 year fixed rate mortgage (principle and interest payment will not change for the life of the loan)
  • Occupancy – Owner-occupied primary residences only.
  • Maximum loan amount – based on the conforming balance limits (currently $417,000)
  • Maximum LTV – base loan amount may never exceed 100% of the market appraised value. When the appraised value exceeds the sales price, you may include all of the recurring and non-recurring closing costs up to a maximum of 100% of the market appraised value.
  • Guarantee Fee –Borrower may choose to finance 3.5% guarantee fee or pay through escrow
  • Interested party contributions – up to 6% of the sales price

Benefits include:

  • No down payment required if funds are not available.
  • Note interest rate is fixed.
  • Some closing costs may be included in the loan.
  • Private Mortgage Insurance (PMI) is not required.
  • Real Estate Taxes and Insurance are escrowed.

Eligibility is limited to persons or families who meet certain eligibility criteria. These criteria include:

  • No down payment required if funds are not available.
  • Household adjusted income cannot exceed 115% of median household adjusted income of the county. Additional information and income limits for your county may be found at
  • Applicant must be a US citizen or a noncitizen that qualifies as a legal alien as defined by USDA regulation.
  • Applicant must use home to be purchased as their residence.
  • Applicant cannot already own adequate housing.
  • Applicant must have legal capacity to incur a loan obligation.
  • Applicant must have a good credit history.
  • Applicants must have repayment ability for the loan requested.
  • Applicant must be unable to obtain financing from conventional lenders (bank, mortgage company, etc.)
  • To determine if a property is eligible, visit


If you would like additional information about the USDA Rural Home Loan program, please call Doug Kaller @ 775-250-4421.