A Rural Development Loan or RD Loan is an amazing product available in several areas and has some great benefits.
- Allows for 100% financing.
- No loan limit but does have income limits.
- 1-4 person $74750 per year.
- 5-8 person $98650 per year.
- Requires a 640 credit score. If you are checking your credit online be aware that sites such as Credit Karma can be off as much as 40 points. See an approved lender to get accurate numbers.
- Any bankruptcies, foreclosures or short sales must be 3 years out.
- Not limited to first time home buyers.
- Primary residence only.
- You can include closing costs, repairs and renovations up to the appraised value in the loan.
- As of 10/01/2016 the loan fee went down to 1% of the purchase price.
- Lower mortgage insurance that FHA and the payment recasts yearly. As your loan amount decreases your mortgage insurance decreases as well.
- Property must be located in an area designated see this map for up to date areas.
- Property has to be 10 acres or less.
This loan is a great opportunity if you plan on living in any of the areas eligible. Call me so I can refer you to a great lender that can secure you this type of loan.