Meagan Kempf ~ Manistee Real Estate Coldwell Banker A.L.M., Manistee Michigan

Understanding Rural Development Loans


 

Quick Guide to Rural Housing Loans
April 2009
 
 
 
  
Not every community qualifies—but if it does, it’s the best thing since sliced bread! 
 
Manistee County is eligible for USDA RURAL DEVELOPMENT loans- also known as an RD loan.  Many of my buyers choose to use this program because of the $0 down payment option. 
 
 
 
Buyer Qualifications Highlights
 
·         No Down Payment
·         30 year fixed rate
·         102% LTV (100% plus 2% guarantee fee)
·         Finance Closing Costs If Appraisal Is Higher Than Sales Contract
·         No Mortgage Insurance
·         No cash contribution required from borrower.
·         Income Limits (by county)
·         Unrestricted gifts, no need to document source.
·         No Maximum Loan Amount
·         No Cash Reserve Requirements
 
Property Qualification Highlights
 
§         Existing Home
§         New Construction
§         New Manufactured Homes
§         Modular Homes
§         Condos & Town homes (Must be approved projects)
 
Prohibited Loan Purposes
 
·         Co-signors not residing in the household
·         In-ground swimming pools
·         Construction draws
·         Furniture and personal property
·         Income producing property
·         Non-essential buildings and land
·         Previously occupied manufactured homes
 
 
Income Guidelines
 
Like most goverment guaranteed loans, the Rural Development loan has income guidelines.  For Manistee County, the guidelines are as follows:
  • 1 - 4 people - maximum income of $73,600
  • 5-8 people - maximum income of $97,150

 

For more information on the program, income guidelines or income limits in other counties, please contact Mike Jones at Honor State Bank, or your lender of choice. 

 
 
 
 
Provided to you courtesy of:                    Honor State Bank
 
Mike Jones                                                        Phone: 231-639-1769                            
Mortgage Originator                                            Fax:      231-639-1763
734 Beulah Hwy                                                 Email:   michaelj@honorstatebank.com
Beulah, MI., 49617                                             Website: www.honorstatebank.com

 

"The information provided has been based on rules and regulations issued by Federal Agencies and interpreted for you by MortgageCurrentcy.com.  Interpretations are not guaranteed but we attempt to make them both easy to understand and help you sell more real estate.  Check with your local and state authorities to ensure that you meet all requirements and disclosures."
 
Copyright © 2009   Reprinted with permission   MortgageCurrentcy.com         

 

 



www.MeaganKempf.com Meagan Kempf Rea Estate Agent Manistee MI


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