News Channel 36 did a report on USDA Rural Development loans last night. It said that the program is "little known", but I've known about it and helped my clients utilize the program for years.
The USDA Rural Development agency (yes, the United States Department of Agriculture) has two different loan programs, Direct and Guaranteed. Eligibility for both types of Rural Development loans is determined based on household size, income and the buyer's credit worthiness. Both programs are 100% (NO DOWN PAYMENT) loans with NO MORTGAGE INSURANCE. FHA loans and Conventional loans with less than 20% down payment require mortgage insurance, which is based on your loan amount and added to your payment each month... so no mortgage insurance is quite a savings to buyers.
The Rural Development Guaranteed loan program is for low to median income buyers. In Cabarrus County (as of April 20, 2009) buyers with 1-4 member households can make up to $76,750 and buyers with 5-8 member households can make up to $101,000. Buyers apply for this loan program with an approved lender (not with the agency directly). For more details about the Guaranteed loan program, read my blog USDA Rural Development Guaranteed Loans... One of the Few 100% LTV - No PMI Loans Available or contact me directly anytime.
The Rural Development Direct loan program is for low and very low income buyers and subsidizes the mortgage payments of qualified individuals. I've personally seen buyers purchase a home with a full total payment of approximately $800 per month, but they paid below $500 per month (approximately $300/month subsidy). For more details about the Direct loan program read my blog USDA Rural Development DIRECT Loans - Subsidized Payment Loan Program or contact me directly anytime.
The biggest catch with Rural Development loans is that the home must be located in an "Eligible Area". In Cabarrus County and the Concord NC area that usually means that the house must be located within a "County Tax ONLY" area. However, the USDA eligibility maps haven't been redrawn for severl years, so some areas of Cabarrus County that are now subject to city taxes are still eligible for a Rural Development loan. To check a property address for program eligibility click the following link... Rural Development eligible area.
If you are interested in purchasing a home using a USDA Rural Development loan, I can set up a Personal Home Search Website for you, that will target homes located in areas that are eligible for a USDA Rural Development loan. I have extensive experience helping buyers purchase a home using both of the Rural Development loan programs.
So, if you are looking for a home in Cabarrus County or anywhere in the Charlotte area CONTACT Cheryl Powell today at 704-363-8902. Let's get started finding your new home!