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Rural Development
The rural housing loan program is sponsored by the USDA to assist low to moderate income families
wishing to purchase
a rural home with no down payment or to refinance an existing rural housing loan. Closing costs can be financed
in the loan amount up to the appraised value of the home. Texas rural housing properties must be located
in a designated rural area and borrowers must meet income limits set by the Rural Development
program.
| Pros |
Cons |
- No Down Payment Required
- Finance Closing Cost up to appraised value
- Loans up to 103.50% to finance the guarantee fee
- Low Interest Rates
- No Mortgage Insurance
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- Borrowers must meet income limits set by the RDH program
- Properties must be in a designated rural area
- Requires manual underwriting
- Requires a 3.50% guarantee fee
- 1 unit owner occupied primary residence only
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Guidelines
| Purpose |
Occupy |
Units |
Max. LTV/
CLTV (2) |
Max. Loan
Amount |
DTI |
| Purchase |
Primary
Residence
Only |
1 |
103.50% |
$417,000 |
29/41 |
Rate/Term
Refinance (1) |
1 |
100.50% |
$417,000 |
29/41 |
- Automated Underwriting - Not allowed. Requires manual underwriting.
This loan program requires two loan approvals, one from the lender and one from USDA. It
takes about two weeks for the loan approval process.
- Bankruptcy or Foreclosure - Requires a minimum of 3 years
from the bankruptcy discharge date or the date of the foreclosure.
- Closing Costs - Closing costs can be financed up to the appraised
value of the home.
NOTE: Prepaid interest and discount points cannot be financed, but can be paid by the
seller.
- Credit Scores - Our minimum credit score is now 620. If
your scores are below 620 you will need credit repair to see if your scores can be
raised enough to qualify.
- Down Payment - Zero...No down payment required.
- DTI Ratio - RDH loans use two qualifying ratios, 29/41.
A maximum of 29% of your gross monthly income can be used to pay your new house payment,
including taxes and insurance(PITI) and,
A maximum of 41% of your gross monthly income can be used to pay all of your monthly debts,
including your house payment(PITI). With compensating factors these ratios can be stretched
a little higher.
- Escrows - Taxes and insurance must be escrowed with the lender.
- Guarantee Fee - All RDH loans require a 3.50% guarantee fee
based on the final loan amount. The funding fee can be financed in the new loan amount.
(see LTV)
- Income Limits - RDH loans limit the gross income your family
makes depending on the number of family members and the location of the new property.
Click here to look up the maximum income your family can make
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- Loan Terms - Only 30 year fixed rate loans.
- LTV - The maximum LTV is 100% plus any portion of the guarantee
fee that is financed. Closing costs may be financed in the new loan amount up to the
appraised value. Loan amounts may not exceed the appraised value .
- Manufactured Homes - Single-wide and Double-wide manufactured
homes are NOT eligible.
- Mortgage Insurance - Not Required. (see Guarantee Fee above)
- Occupancy - Borrower must occupy the home within 60 days
after closing.
- Property Eligibility - Only properties located in a designated
RURAL area are eligible for RDH financing.
Click here to look up the property address to determine eligibility or you can look at general
maps for your area
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- Property Types - Single family, 1 unit homes, townhomes,
approved Condos and PUDs.
Condo projects must be approved by HUD, VA, FNMA or FHLMC and served by an HOA.
NO 2-4 unit multi-family properties.
- Seller Concessions - Are limited to 6% of the sales price. The closing costs can be provided by the seller, paid
by the lender with overpar pricing, or
financed, providing the appraised value is high enough to support inclusion of the
costs.
Note:
Guidelines subject to change without notice. Additional guidelines and restrictions may
apply.
Submit your loan application for loan approval.
Rates
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30 Year Fixed Loans
30 day lock. |
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|
Rate |
Points |
APR |
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4.250% |
1.625% |
4.646% |
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4.375% |
0.875% |
4.707% |
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4.500% |
0.125% |
4.767% |
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Notes:
Maximum loan amount is $417,000, including a
3.50% guarantee
fee, if financed.
Eligible borrowers must meet RDH income
limitations.
Eligible properties must be in a designated RDH
rural area.
Finance closing costs up to appraised value.
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Credit Scores:
620 Minimum. |
Additional adjustments & restrictions may apply <> Contact
us for an
analysis and estimate
Notes
for rates |
It's real easy to Get Pre-Approved. Just
click here to submit your loan application and get started.
Lock your rate at 888-623-7083 or in Austin
call 259-7788...
Rates are subject to change without notice until locked in.
Rates on this Page Last Updated:
09/03/10
Purchase Loan Application - This is a complete loan application and purchase
questionnaire. It should take from 15 to 30 minutes to complete.
- Click
here
for a general list of information needed to complete your application.
- After reviewing your application and credit report, your loan will be submitted
for Automated Underwriting prior to calling you to discuss your application unless
additional information is needed from you.
- The results will be emailed to you with an estimate for your review. Rates are subject
to change until locked in. Please call our office for details
about locking your
rate.
- Your complete loan application and disclosure forms will be overnighted to you
for your review and signatures, along with copies for your records. A written list
of the required documents needed and a return overnight envelope will also be included
for you to return the documents to us.
- The only upfront costs to you are the credit report/AUS fee($50) & the appraisal
fee($405). The appraisal fee cannot be collected until you have received a Good
Faith Estimate and Truth In Lending. Click
here
for more details on the loan process.
Note: If for some reason your loan cannot
be approved through our Automated Underwriting Systems and traditional underwriting
is required, some additional costs may be required and you will be advised in advance.
More details on "Traditional Underwriting" can be found
here
Pre-Qualify
- This is a short form that only takes a few minutes to complete.
- It will give us the info we need to pre-qualify you according to your income,
debts and funds available for down payment and closing costs.
- The results will be emailed to you with an estimate for your review.
- The Pre-Qualify form is primarily designed for borrowers with good credit since
NO credit report will be pulled with this prequalification.
Email or call us if
you need additional information.
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Fax:
512.259.4408
