The Rural Development Loan program may be one of the home buying communities best kept secrets. Despite the fact that this program requires no money down and offers fixed interest rates, many home buyers are simply not aware of their existence. Or, they are skeptical based on experience with past programs that offered similar “too good to be true advantages.”
The truth, however, is that the Rural Development loan program is unlike many of the past mortgage offers that contributed to the fall of the housing industry. Instead, this no money down program offers some real advantages designed to help both home buyers while building the nation. These advantages include:
- Backed by the United States Government: The loans are backed and approved by the United Stated Department of Agriculture (USDA).
- Building Communities: The loan program is designed to make home buying more affordable in the nation’s smaller communities .
- No Money Down: The Rural Development Loan program is one of the last true no money down options left on the market.
- Fixed Interest Rates: Your monthly mortgage payments will remain the same from month to month.
- No Maximum Loan Amount: Finance the entire loan, up to 100% of the appraised value of the house.
- Flexible Credit Guidelines: A history of bad credit does not automatically disqualify you from eligibility.
- New and Existing Homes Qualify: Take out a Rural Development Loan regardless of whether the home is new or used.