Conventional No Mortgage Insurance
The Rural Housing loan is guaranteed by the USDA’s Rural Housing Service. This mortgage program is designed for low to moderate income families in rural areas. The USDA’s “guarantee” means that they will compensate any lender for any USDA Rural Housing loan in default. Additionally, this “guarantee” means that lenders are more than willing to lend their money to individuals with less than stellar credit and no down payment requirement. Most lenders will allow credit scores as low as a 620. The “guarantee” also indicates that lenders will not require mortgage insurance for Rural Housing loans. Nonetheless, Rural Housing loans charge a 3.5% upfront funding fee, which can be financed into the loan. In the scenario of financing the funding fee, the final loan amount will equal 103.5% of the property purchase price. This means the consumer begins home ownership with a mortgage larger than the home is worth. The two major limitations of this program are income restrictions and the property must be located in a designated rural area. Please go to the USDA’s website to check income and property location eligibility.
USDA Rural Housing Highlights
- Credit qualification flexibility as low as a 620 score.
- No down payment requirements.
- Designed for relief for low to moderate income qualifiers (check to see if this program is available in your area).
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Learn about alternative loan programs that may fit your goals.
- Purchase a primary home with as little as a 3.5% down payment.
- Qualify with less stringent qualification and credit requirements.
- Access to all fixed-rate and adjustable terms.
- Ability to purchase a home with as little as a 3% down payment.
- Flexible mortgage insurance choices. Learn about mortgage insurance options.
- Fixed-rate and adjustable-rate program options.
- Avoid mortgage insurance all together with only 20% down and access the most competitive rates the wholesale market has to offer.
- An opportunity to purchase a home up to $2,000,000.
- Purchase your primary home with as little as a 15% down payment with no mortgage insurance.
- Enjoy the ability to pay-down or payoff your mortgage at any time without a pre-payment penalty.
- Purchase your primary home with absolutely no down payment.
- No monthly mortgage insurance (PMI).
- Fixed-rate and adjustable-rate program options, including jumbo loans.
- Purchase a Fannie Mae-owned home with a down payment as low as 3%.
- No appraisal requirement.
- No private mortgage insurance (PMI).
Why you should choose Starwest Mortgage for your home purchase:
- As a broker, Starwest gives you access to the most competitive rates, fees, and programs the wholesale lending industry has to offer. Why use a broker?
- No Closing Cost program
- Get loan status updates anytime, anywhere. Take advantage of our online tools.
In addition to mortgage options, learn your Home Purchase Responsibilities and information to keep you on track throughout your purchase transaction…