This program is also know as the U.S. Department of Agriculture’s Rural Development Single Family Housing Loan Guarantee program.  Otherwise known simply as the “Rural Housing Loan”, this loan is similar to loan programs offered by Freddie Mac and Fannie Mae but with a twist.  The down payment requirements and mortgage insurance guidelines are different. Home buyers can purchase homes in a qualified rural area as defined by the program stipulations. There are plenty of  exurban and suburban neighborhoods  nationwide in which the USDA mortgage loan program applies.

A plus to the program is that the mortgage rates under this program are typically lower than other programs in the marketplace. The best part is this loan program does not require a home purchase down payment like others do. A great advantage to this program is that the “RD Loan” advantage is that its annual mortgage insurance fee is just 0.40% annually, no matter how large or small of a down payment. This mortgage insurance is less than half of the private mortgage insurance  charged by comparative conventional loan providers and is up to 1/4 of what the Federal Housing Administration (FHA) charges (excluding participants in the FHA HAWK program for reduced MIP.

So, many can now afford a home purchase under this loan program and start looking for a home in the rural housing neighborhoods local to you. Contact a qualified mortgage loan professional or ask us for any references. We can provide several mortgage professional who offer the program.