Richard's Real Estate Thoughts - Chattanooga TN Mortgage Lender

Changes in the USDA Rural Development Home Loan

 

The USDA Rural Development program has several new features, effective 12/1/2014. Most of the changes are good news for home buyers and sellers.  The USDA Rural Development program has always had many features that make is an excellent home purchase loan alternative for many buyers. 

These features include: 

  • No minimum down payment, 100% LTV financing

  • Low monthly fees (compare to conventional mortgage insurance)

  • Low loan interest rates 

The program is designed for moderate income families and has restrictions about locations approved for USDA financing.  Another occasional problem was delays in closing that resulted from the approval review requirement. Lenders prior to closing had to obtain funding authorization from the local USDA office. This requirement could add a week to 3 weeks to the closing time frame. 

One of the new features of the USDA changes promises to streamline this closing process. We are early into the implementation of the changes, and much is still to be discovered about the program improvements. 

I hope that most of these new features make a great home purchase program even better for buyers seeking to purchase in approved USDA areas. 

You can determine if  your home is in an approved USDA area by accessing the USDA website here. 

Call me with your questions about the USDA home purchase program in general or about the many changes that became effected 12/1/2014. 

I will more comments on some of these changes in future posts.

 


Thank you for visiting. This is the professional blog for

Richard Smith
NMLS# 184479 TN# 104002 Georgia Residential Mortgage Licensee, GA#28928 

Conventional, FHA, FHA 203k, HUD $100 down purchases, VA,

Rural Development (USDA), THDA and Jumbo Loans


Lending in Chattanooga, Tennessee and Georgia for over 20 years.

Fairway Independent Morgage Company

Cell phone: 423-280-0345 Email:  Richard.Smith@FairwayMC.com

Visit my website to inquiry about a home loan.

This blog represents the opinions of Richard Smith. The posts and comments written on the blog do not represent the opinions or positions of Fairway Independent Mortgage Corporation.

 
Comment balloon 1 commentRichard Smith • December 05 2014 02:36PM
Changes in the USDA Rural Development Home Loan
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