 |
The lender
is Rural Development's customer. |
|
Loans
can be made 100% loan-to-value. |
|
No downpayment
requirement. |
|
Must
be within income limits. |
|
Repayment
ratios are 41% and 29% (some flexibility). |
|
Debts
with 6 months or more to pay count on total debt ratio. |
|
Closing
costs can be included in loan. |
|
No limit
on seller contribution (by Rural Development). |
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No PMI
or MIP required. |
|
Interest
rate - not to exceed FNMA 90 day plus 6/10 or |
| |
lenders
published V.A. rate. |
|
Terms
- 30 years only. |
|
For new
or existing property. |
|
Do not
need to be first time homebuyer, but cannot currently |
| |
own
an adequate dwelling. |
|
Gift
letters are acceptable. |
|
Must
be in a rural area. |
|
Land
value can be up to 30% of total value. |
|
If property
is in a subdivision, it must be approved by a local, |
| |
regional,
state, or federal agency. |
|
The property
must be contiguous to and have direct access |
| |
from
a street, road, or driveway. Streets and roads must be |
| |
hard
surfaced or all-weather surfaced. |
|
Houses
must be free of asbestos building materials as they |
| |
are
considered a health hazard. |
|
An in
ground swimming pool is considered above modest |
| |
and is
not permitted. |
|
Existing
mobile homes are not eligible. |
|
Poor
quality homes do not meet program objectives of |
| |
providing
decent, safe, and sanitary housing are not eligible. |
