USDA Rural Home loan: Anybody done this?

[thingshappening]

If you fall within certain income guidelines, you can get your interest rate subsidized down to 0 percent for the life of the loan. As well, there is no private mortgage insurance requirement, no down payment requirement, and you can extend the loan to up to 38 years.

You might be amazed what that translates to in practical application.

A friend just qualified. She got a 140K mortgage, zero down, and pays $360 a month for her mortgage! Insane.

The only issue I see is that in order to qualify for a rural home loan- as you probably deduced- you have to live in a rural area. That sucks for my tastes.

Check here to see what areas qualify:

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11

 

[amannamedtruth]

Interesting. I like the city, too.

 

[thingshappening]

The city? Most city homes won't qualify. Not sure what you mean.

 

[Tuhder]

I looked into this and it was by FAR the best deal you can get when financing a home.

Unfortunately, I was unable to get the loan due to my area not falling into the "Rural Zone" So I had to do a regular FHA. I would have loved to get a Rural Development Loan.

 

[chargers123]

1. do you have to have a good credit score?
2. what if you start to make more money than allowed, after you already get the home?
3. what if you get the home, then move away to the city one day; would you have to sell the home or what?

 

[ganjasuiteseat]

t

 

[Cheerful]

t

OOTH! lolz!!!

 

[chargers123]

interest rate is based off your income.

no money down.

 

[DRorganic]

my brother has one and he is on disability and raising one child. his rent is 400.00 on a 140,000.00 loan. what if your child is already out my son is 23.

 

[mrheadie]

i used the rural fha a few years ago and was amazed with the ease and affordability. i had saved for a few years living back with my mother and when they told me i actually "couldn't" put any money down i was shocked! saved up 16 grand working long hours (15-20 hrs overtime per week) and tons of side jobs and i could off done years earlier with just the fees and closing costs. i'm only about 20 minutes from the city (which i work in) and the country setting is very peaceful. i took out about 100,000 and my payment is just over 500 per month (under 1000 with taxes and insurance). from the studying i did, as long as their are funds available, they're pretty easy to qualify for. got my roommate getting into one now, need my house to myself again!

 

[mrheadie]

interest rate is based off your income.

no money down.

i could be mistaken, but i think when i got mine it was a 6.75% flat rate across the board.