Your Lake of the Ozarks Mortgage Lender: January 2024

Friday, January 19, 2024

USDA Rural Development Loan Program

USDA – Rural Development Loans

Many first time home buyers do not have the standard down payment saved to invest in their new home purchase. There are several loan programs available to help with this dilemma….USDA Rural Development Loans are one of those options.

This program will allow the borrower to purchase their new home with no money down and will also allow for the seller to pay closing costs for the borrower so they could potentially purchase a new home with no money out of their own pocket.

This program has several requirements that must be met by the borrowers such as:

- Household income limits (this includes income for all persons that will be living in the home, not just the borrowers on the loan)

- Debt ratio limits (these are typically lower than conventional loan requirements)

- Limited Assets (borrowers cannot have access to monies that could be used to meet the 20% down payment requirements for conventional financing)

When pursing a USDA Rural Development Loan, the property must also meet certain inspection requirements with regards to safety issues, water sources, etc. These inspections can usually be performed by the appraiser to see if they meet the requirements of USDA, if the appraiser is certified by USDA; if not, a separate inspector will be required to perform these inspections.

Depending on how the property appraises, the borrower can sometimes roll closing costs into their loan and/or have upgrades to the property (i.e., flooring replacement, etc.) included in their loan amount.

Team Lasson is here for all your home buying needs! If you're thinking about making the leap into home ownership in the near future, please contact us today to get started. We can help you determine what loan programs works best for your financial goals. The first step in preparing for your big purchase is to get pre-approved for a mortgage at Lake of the Ozarks. To get started, visit www.yourlakeloan.com or give us a call at (573) 746-7211!