Quick Guide to Rural Housing Loans
Not every community qualifies—but if it does, it’s the best thing since sliced bread!
Manistee County is eligible for USDA RURAL DEVELOPMENT loans- also known as an RD loan. Many of my buyers choose to use this program because of the $0 down payment option.
Buyer Qualifications Highlights
· No Down Payment
· 30 year fixed rate
· 102% LTV (100% plus 2% guarantee fee)
· Finance Closing Costs If Appraisal Is Higher Than Sales Contract
· No Mortgage Insurance
· No cash contribution required from borrower.
· Income Limits (by county)
· Unrestricted gifts, no need to document source.
· No Maximum Loan Amount
· No Cash Reserve Requirements
Property Qualification Highlights
§ Existing Home
§ New Construction
§ New Manufactured Homes
§ Modular Homes
§ Condos & Town homes (Must be approved projects)
Prohibited Loan Purposes
· Co-signors not residing in the household
· In-ground swimming pools
· Construction draws
· Furniture and personal property
· Income producing property
· Non-essential buildings and land
· Previously occupied manufactured homes
Like most goverment guaranteed loans, the Rural Development loan has income guidelines. For Manistee County, the guidelines for 2009 are as follows:
- 1 - 4 people - maximum income of $73,600
- 5-8 people - maximum income of $97,150