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Wednesday, May 23, 2012

Rural Housing Loan Program

Do you need room to roam? If you love the country as much as I do, there is a loan program that may appeal to you. It’s called the Rural Housing Loan Program and it offers 100% financing!!!

If you qualify, you can obtain a government insured mortgage on the home of your dreams with land to spare. The program is popular for many reasons as it can save you a considerable amount each month and does not require you to be a first time homebuyer. Certain towns qualify so if you’d like to learn more about which towns support this program, please call or email me directly.

USDA Home loans provide a low-cost insured home mortgage loan that suits a variety of options. To be eligible in CT, your monthly housing costs (mortgage principle and interest, property taxes, and insurance) must meet a percentage of your gross monthly income. (29%)

Your credit score doesn’t need to be that high either. A 620 FICO credit score should be sufficient to obtain a USDA loan. Your total household monthly income must be within the allowed income limits for your area. There are also no maximum loan amounts or reserve requirements. That means that if you’ve been dreaming of that horse property or not being able to hear your neighbors and their teenage son’s cars driving up and down the street in the middle of the night, this could be your ticket to paradise!

Many times with these programs, you can also negotiate with the sellers to help you with up to 4% of your closing costs. There is no down payment required as well as no private mortgage insurance. That is a huge relief to prospective buyers that are concerned with the exorbitant costs of PMI (Private Mortgage Insurance). Many times, banks require a certain amount of financial reserves in the bank and with this program it’s just not the case. It’s a wonderful program that is helping buyers get into a home with little money out of their pockets.

For more information about Rural loans and any other helpful real estate information, please visit my website at

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