USDA Loan Programs:

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.

USDA Loans are an attractive option because:

 

o    Zero down payment

o    Unlimited Seller contributions

o    Unrestricted Gift Funds

o    100% of appraised value, not sales price

o    Up to $10,000 of repairs based on as improved value

o    30 year fixed loan

o    USDA does have income limits (check with your Amerifirst LO for details)

o    No Max Loan Limits (but purchase price will be restricted by income limits)

o    Debt Ratios 29/41 (possibly higher with risk layering)

o    Purchase Only!

o    No MI - But a 2% RHS Guarantee Fee is Charged

o    Zero Reserves Required

o    Loan Must go Through GUS Underwriting System

o    Borrower must have $500 of Own Funds In the Deal

o    Home must be in designated area

USDA 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.

Find out if you qualify for an USDA Loan.

Apply Now

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