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TEXAS USDA RURAL DEVELOPMENT LOANS

 usda

The United States Department of Agriculture (USDA) has a program to help people in rural areas get affordable home loans. This is called the rural development (RD) program. The RD program has several advantages compared to other types of mortgages:

• Very low finance rates
• Up to 100% financing
• Seller concessions are allowed to pay your closing costs up to 6% of the sale price
• No minimum credit score, borrowers with no credit score or non-traditional credit may qualify
• No maximum purchase price
• NOT just for first time buyers
• Private Mortgage Insurance (PMI) is not required, this makes your monthly payment lower

There are several requirements to qualify for this program. Here are some of the key items:

• Be a US citizen or legally admitted to the US for permanent residence
• The property must be residential
• The property must be in a designated rural area, ask our loan officer to check this for you
• There is no acreage limit but the land must not be more than 30% of the total value
• Income limits apply, generally 115% of the US average
• Reasonably good credit, especially the last three years
• Sufficient dependable income for the property you wish to purchase, generally the home payment should not be more than 29% of your gross monthly income
• You must NOT have 20% of the property's value in liquid assets
• You must not already own adequate housing in the commuting area you wish to purchase in

Texas Capital Mortgage participates in the USDA rural development program. Rules are subject to change so please ask one of our mortgage loan origionators for up to date information. If for some reason the USDA RD program is not suitable for your needs we have other options to choose from. Please contact us for a free, no obligation consultation.

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 CALL  US TOLL FREE AT 1-866-433-0500

 

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