Rural Development (RD) Loans
The Rural Development Guaranteed Housing Program works to improve the quality of life for Americans by ensuring that they have access to safe, well-built, affordable homes. Homeownership builds economic stability and, over the long term, creates equity to finance education, business startups and retirement. RD thus not only helps people acquire homes, it helps them build better lives and communities.
Benefits:
- No Down Payment required - 100% Financing
- Not only for First Time Homebuyers
- No Monthly PMI (Private Mortgage Insurance)
- No limit to Seller Concessions towards the Buyer's Closing Costs and Prepaid items
- Closing Costs can be financed into the loan
- Repairs to the home can be financed into the loan
- The one time 3.5% RD Guarantee Fee may be financed into the loan
- Streamline Refinances are available - this allows borrowers to refinance with limited income and asset documentation.
Limitations:
- Generous Income Limits of 115% of the area median income minus eligible deductions for dependents, child care, etc…
- Income Limits in Northwest Arkansas are as follows: $74,050 for 1-4 member households and $97,750 for 5-8 member households.
- Eligible properties must be in "rural" areas only. More areas qualify than you might think.
- Minimum Credit Score of 620
- No Co-Signors or Non-Occupying Co-Borrowers are allowed