USDA Rural Housing Loans, are one the last of the 100% financing options available.
The borrower can finance up to 102% of the appraised value allowing closing costs to be rolled into the loan. The seller can also pay up to 6% of the purchase price in closing costs.
First time buyers are not restricted from using this program and no asset verification is required and credit score requirements are lenient. Also many programs limit how much can be borrowed if the home is classified as being in a declining market, however this is not a restriction with the USDA Rural Housing Program.
Lastly, there is no PMI with this program. PMI is required on conventional and FHA loans if less than 20% down payment is made. PMI can add $55 or more to the mortgage payment for every $100,000 borrowed, so eliminating this helps lower the payments.
There are certain restrictions related to total household income and geographic location of the property. These restrictions are not too difficult to overcome.
Contact : Mike Owens, Partner with Horizon Financial, Inc. to inquire about this program. He can be reached at 864 907 2678 or via e-mail at MOwens@HorizonFinancial.org
