I took a little break, (sorry about that!) but today I’m getting back to you to tell you about the last type of loan available for home buying… Rural Development Loans, or the RD loan. Below are some basic facts about lending guidelines for Rural Development loans.
- Minimum down payment….0%
- Maximum loan amount…….$417,000
- Minimum credit score……………640
- Maximum Seller contributions……4% of purchase
- Source of down payment………Can be gift or secured loan
I sure hope that Minimum down payment amount caught your eye…0%! I am not kidding!
Keep in mind a Rural Development loan is most likely going to be used by a “First Time Home Buyer”, but you don’t have to be one! Although, according to the Minnesota Housing Finance Agency, in 2014, 40% of Minnesota home buyers were first time home buyers! That’s a lot of first time home buyers and this agency stands behind their willingness to help buyers realize their dreams.
Of course there are other considerations to be able to qualify, like income limits for instance, but you should definitely check with your lender to see if you and the property you’re considering meet the requirements!
If you need a great lender with tons of experience with RD loans, give me a call. I know just who you need to speak with!
If you’re looking for a Realtor that believes in, appreciates and takes care of first time home buyers, give me a call.
I’d like to remind you that all of my first time home buyers receive a 1 year home warranty at closing; paid by me…not many Realtors do that! This is my gift to you to help you through your first year as a home owner.