- The USDA program has a multitude of eligibile property addresses here in Central Texas. This is a great program for the borrower with limited funds to buy. Allow us to be your USDA Texas lender.
- The U.S. Department of Agriculture offers a variety of programs to help low to moderate-income individuals living in small towns or rural areas achieve homeownership. The Rural Housing Service (RHS) helps qualifying applicants, who cannot receive credit from other sources, purchase modestly priced homes as their primary residence.RHS Loans are an attractive option because:
- Minimal closing cost
- Low or no down payment
RHS loans can be used toward the purchase and renovation of a previously owned home or a new construction. Families must be able to pay their monthly mortgage, homeowner’s insurance and property taxes.
– Maximum LTV– 100%No down-payment required if not financing guarantee fee.
– Guarantee Fee of 2% for purchase transactions (2%for refinances) can be financed in the loan amount.
– For existing site built single family. (More than 1 year old or previously lived in) and new construction builder to borrower.
– Full appraisal is required, appraiser must be HUD approved. (Note exception under refinance.)
– All loans must meet high cost test if applicable for your area, and only FHA allowable fees can be charged to the purchaser.
– Total origination paid by borrower must not exceed 1%.
Effective October 1, 2011 for commitments issued through USDA on all purchase transactions, an upfront guarantee fee equal to 2% of the loan amount and an annual fee of 0.4%of the unpaid principal
balance will be charged. Refer to the link below for additional information through USDA. The upfront guarantee fee will be 2% for refinances (with 0.4% annual fee) for commitments issued by
USDA on 10/1/2012 and after (annual fee is collected monthly as part of regular mortgage payment).