If you have a credit score of 640 or above you may qualify for a RD, Rural Development Loan.  When most people hear the word rural, they often think of things like farms and wide open spaces.  But did you know that most of the homes in St. Bernard Parish and St. Tammany qualify as "rural" when it comes to qualifying for 100% financing?  

The Role of Rural Development Programs

With today's rural development programs, local lenders partner with the various programs and provide 100% financing opportunities to rural families who qualify. Lenders include banks, credit unions and community-managed lending pools. These loan programs have low interest rates and affordable loan terms that make it possible for low to moderate income families to purchase a home. There are some things to consider, however, such as the fact that families much purchase a rural home and have a household income that does not exceed a certain amount.

Here are some more details surrounding rural development programs:

  • Financing is 100% with no down payment required.
  • Guarantee Fees can be rolled into the loan amount.
  • Closing costs or lender fees may be rolled into the loan amount under certain circumstances.
  • There is no maximum purchase price.
  • There are flexible credit qualifications, assisting those with poor credit.
  • Not limited to first-time homebuyers.
  • Available for all types of homes, including condominiums, new construction and modular homes.
  • Money from grants, gifts or mortgage credit certificates are allowed.
  • If repairs need to be done on the home, they can be rolled into the loan.

Its obvious that there are many benefits to rural development programs for housing. They have fewer restrictions compared to other types of loan programs, and they are not limited to first-time homebuyers or those with good credit. In fact, many of the programs provide fixed-rate mortgage financing to low-income families that weren't able to obtain financing from anywhere else. These families, however, are provided with supervised credit that delivers credit counseling during difficult financial times.


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