Buying a home today can be a difficult task. With the tough economic conditions we face across America, people are uncertain in many ways about what type of financing they can obtain even if they chose to try to purchase a home. One of the greatest programs available for people looking to purchase a home today is called the Rural Development Loan. This is a great mortgage opportunity for Americans that reside in rural America and wish to get a home.
A Rural Development Loan is the perfect choice for someone who wishes to purchase a home that might otherwise not be allowed under stricter guidelines from more traditional lenders, such as banks, credit unions, and mortgage companies.
A Rural Development Loan allows borrowers more leeway in their criteria for purchasing a property. They allow for the purchases of almost all new housing units such as new homes, new manufactured homes, new modular homes, and new condominiums. The guidelines are slightly more stringent for the purchase of existing homes. In these cases, they allow for the purchase of modular, regular stick built homes and condominiums. However, they do not allow for the purchase of existing prefabricated or manufactured homes.
These loans are geared to increase the population and strengthen the economy of rural America. These loans are insured by the U.S. Government, so there is more leniency with some aspects of lending, including allowing for no money down purchases. Under normal circumstances today, this would be almost unheard of as a lending practice since the collapse f the U.S Housing market. However, these loans are geared to a specific population of buyers and these loans are meant to improve the quality of life for rural America.
Because the loans are guaranteed by the federal government there is no mortgageinsurance necessary. The interest rates for these loans are presently at an all time low fixed rate. In addition some of these loans allow the borrower to buy a home that is in need of repairs. This is in contrast to FHA loans which have more stringent guidelines for purchasing and financing then the Rural Development Loans.
For young people starting out or families who are looking to get their chance at experiencing the American dream of owning a home of their own, this loan program is the perfect way to get that first.
While there are still guidelines and restrictions on loan amounts and a buyer’s credit standing, the Rural Development Loan is overall more flexible on these issues than almost any other mortgage program. They make room for small credit glitches and understand that not everyone can afford a large down payment on a home. In fact the Rural Development Loan program is the most flexible and viable mortgage loan program available for homebuyers today.