USDA Rural Development
“The subsidized mortgage product is one where the borrower applies to USDA Rural Development for their financing. The loan is written at our current fixed rate of 4.875%, but the payments may be subsidized down to as low as an 1% rate. This is an 100% financing product so there is no down payment required. The maximum loan limit is $200,160. If customers would like to apply for this program please ask them to complete and return the Pre-Qualification Survey and Authorization to Release Information form in the attached pre-qualification package.
“The second program is a guaranteed housing program where buyers obtain their mortgage from a local lender and USDA Rural Development provides the private mortgage insurance. This means buyers do not need a down payment and the lender will provide them with 100% financing. There is a 2% funding fee (2% of the loan amount) paid to USDA Rural Development at loan closing for the private mortgage insurance. The lender can loan the buyers these monies as well. If customers would like to apply for this product they need to contact one of the local lenders listed in the pamphlet.”