USDA Rural Development DIRECT Loans - Subsidized Payment Loan Program

By
Real Estate Broker with RE/MAX Executive Realty - The Powell Team 202938
http://actvra.in/fyg

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Do you know someone who has a job and works hard, but their income isn't high enough to afford a well maintained home in an area desireable to them?  If so, the USDA Rural Devolopment DIRECT Loan Program may be the perfect loan program for them.  This is a 100% financing (NO DOWNPAYMENT), no Mortgage Insurance, government subsized loan program!  I've seen this program dramatically change the lives of families for the better by helping them purchase a nicer home, than would have been possible using traditional financing programs, with an affordable payment.

CLICK HERE to view details about the USDA Rural Development Direct Loan Program (Section 502).

Unlike the Rural Development Guaranteed Program, buyers apply directly to their local USDA Rural Development Office for the Direct Loan Program and the funding comes directly from that agency as well. 

This program is for low and very low income buyers, usually below 80% of the median income in the county where the home they purchase is located.  CLICK HERE to view single family housing Direct Loan Income Limits.

The maximum loan amount also varies by county, CLICK HERE to view Area Loan Limits.

The property must also be located within the USDA Rural Development Program approved area, CLICK HERE to Check Property Eligibility.

Under the Direct Loan program, individuals or families receive direct financial assistance directly from the Housing and Community Facilities Programs in the form of a home loan at an affordable interest rate.  The payment is subsidized based on the buyer's adjusted gross income and number of household members.  Payments can be reduced to a level that would be equal to a Principal and Interest payment at 1% interest rate, plus property taxes and home owners insurance. These loans have no Mortgage Insurance.  Up to the full subsidy amount can be recovered at closing by the USDA Rural Development program though.

Once a buyer submits their application to their local USDA Rural Development office, it will take approximately 30 days to find out if they have been approved.  Unfortunately, funding isn't always available for these loans, so sometimes buyers have to wait until funding is available.  Once funding becomes available you have to move quickly to find a home that is located in an eligible area for this program.  In my experience, closing usually takes 45 days once funding is available and a contract is submitted.

I've helped several families purchase a home through this program...if you have any questions or would like my help just let me know.

Cheryl Powell- Remax Executive Realty

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Re-Bloggged 2 times:

Re-Blogged By Re-Blogged At
  1. The Powell Team 09/08/2008 02:03 PM
  2. Randy Powell 09/12/2008 04:30 PM
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Topic:
Lending / Financial
Location:
North Carolina Cabarrus County
Groups:
Dedicated Bloggers
Posts to Localism
Realtors®
Special Mortgage Programs & Down Payment Assistance Programs
USDA Rural Development Loan Group
Tags:
mortgage information
real estate
north carolina
nc
rural development
usda
special mortgage programs
100 financing

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Anonymous
Becky

Im just wondering how many people dump these houses and file bankrupt on them and what happens if you do? worst loan ever! My hubby only one working we have 7 kids and they up our payment his monthly income is 2,600 an no child support go figure.

June 19, 2013 02:50 PM
Rainmaker
263,866
Cheryl Powell
ABR,SFR,Broker-Concord & Charlotte NC Area Realtor
RE/MAX Executive Realty - The Powell Team

Hello Becky, I have to disagree with your statement that this is the "worst loan ever".  The loan isn't for everyone, but for some people it makes the dream of home ownership a reality.  Also, most of the time the house payment is lower than what you can rent a small apartment for...so it changes people's standard of living dramatically.   This loan program does require the borrower to provide income and other household situation updates, this information is used to determine if the borrower still qualifies for the payment subsidy and if so how much.  So, if your income goes up or your household size goes down, etc, the payment can go up based on that information. I'm sorry you feel you are having bad experience. 

June 20, 2013 11:57 AM
Anonymous
Shannon
Cheryl I live in Louisiana but what number can I maybe reach you to ask you some questions about trying to get a home?
December 20, 2013 11:29 AM
Rainmaker
263,866
Cheryl Powell
ABR,SFR,Broker-Concord & Charlotte NC Area Realtor
RE/MAX Executive Realty - The Powell Team

Hello Shannon.  It was a pleasure speaking with you today.  If I can help in any other way please let me know.

December 20, 2013 05:41 PM
Anonymous
sadie
Does filing income tax with 1099-c Cancellation of debt of student loan affect the amount of payment subsidy? How would they look at this if you were to provide all the update information and this 1099-c is not an earn income from jobs, but just had to file the form. would this affect the payment that I've been making and would it make my payment higher? I'm scared and need help. thank you!
February 13, 2014 12:09 PM
Anonymous
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Rainmaker
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Cheryl Powell

ABR,SFR,Broker-Concord & Charlotte NC Area Realtor
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Additional Information

I provide professional real estate services to Buyers and Sellers in Greater Charlotte NC, including Concord, Harrisburg, Kannapolis, Mooresville, North Charlotte, Salisbury and surrounding areas. My specialties include: Resale Homes - New Construction - Relocation - 1st Time Buyer Programs - Investments - Foreclosures - Short Sales. I have the experience, knowledge and dedication that it takes to get the best results. Contact me anytime to discuss your real estate needs! ActiveRain Real Estate Social Network