Homes in rural Parishes could possibly qualify for a 100% financing program guaranteed by the US Department of Agriculture. USDA RD Home Loans offer Competitive 30 year fixed rates. The maximum rates allowed are determined and posted by USDA Rural Development and income limits apply.

The Rural Development Mortgage Program offers two different home ownership programs.

GUARANTEED FINANCING

• 100% Financing
• Competitive Fixed 30 year rates
• Recently expanded income limits
• No maximum sales price or loan amount
• Clients work with traditional mortgage lenders
• No monthly mortgage insurance. Commonly referred to as MIP or PMI.
• Normal purchase to closing processing time.
• Home will be inspected and appraised by a local HUD approved appraiser.
• Typically, USDA Rural Development financing requirements are more flexible than FHA/VA.

DIRECT LOAN FINANCING

• 100% Financing
• Competitive fixed rates---33-38 yr. loan terms
• Clients work direct with local USDA Rural Development office to obtain loan.
• Maximum purchase price limits vary depending on the county
• Lower income limits compared to the guaranteed program
• Purchase to closing processing time MAY be longer
• SOME BORROWERS MAY QUALIFY FOR SUBSIDIZED PAYMENTS.
• If this applies borrowers could be subject to re-capture upon selling of the home.
• Home will be inspected and repairs may be necessary to place home in required condition. Cost for repairs may be rolled into the loan.

The home must be a single family residence and must be located in an eligible rural area as defined by the USDA. According to Section 502 of the program, "houses must be modest in size, design, and cost." Manufactured homes may also qualify with restrictions.

The USDA Rural Housing Guaranteed Loan program offers no money down financing for low to moderate income households living in eligible rural areas. Jeff Melancon has significant experience and business acumen to help guide you through the process.

• The demand for USDA HOME MORTGAGES have exploded over the last couple of years. Millions of borrowers who reside in rural areas are potentially eligible for USDA Rural Development 100% financing.
• USDA HOME LOANS are offered with no monthly mortgage insurance add-on which increases the monthly mortgage payment. FHA and privately insured conventional financing normally requires a monthly mortgage insurance premium (commonly referred to as MIP or PMI). A single one time guarantee fee is charged up front on a USDA Rural Development Home Loan which may be added to the loan amount extending the LTV (loan to value) to 103.5% of the sales price.
• A USDA HOME MORTGAGE will also allow closing costs and prepaid costs to be added to the loan amount if the house appraises for an amount greater than the sales price. This is unique in that other types of financing base their maximum allowed LTV (loan to value) on the sales price or appraised value whichever is less.
• USDA RD HOME LOANS may be used to purchase a new or existing single family home in most rural areas where a market does exists for housing.
• USDA HOME MORTGAGES are all fixed rate loans. The P&I (principle & interest) will not change over the life of the loan. This removes any unknown surprises or concerns with payment increases as is found in other types of mortgages.
• USDA RD Home Loans are not only for first time homebuyers. Borrowers must intend to occupy the home as their permanent residence. Condo's, Townhomes, and single family homes may qualify for USDA Rural Development home financing.
• USDA Home Loans do not require perfect credit. A minimum 620 credit score may apply.
• RD Home Loans do not have a maximum sales price or maximum loan amount requirement. The income of the household will determine these amounts. Income limits do apply and are determined by the county in which the property located.
• USDA HOME LOANS are limited to rural communities normally of 20,000 or less in population. Under certain conditions some areas of larger towns and cities may qualify.