USDA CONSTRUCTION LOANS
For the first
More than First-Time Home Buyer...
1. No loan limit, just income limit.
2. The construction interest can be rolled into the loan.
3. Builder can pay closing costs.
Only Selected Lenders have this product. 1st Signature Lending, LLC is an accredited lender in IN, KY, OH, GA, Fl, SC, TN and CO
We can help you find an accredited builder.
The United States Department of Agriculture (USDA) created the Rural Development Guaranteed Housing loan to help develop rural areas, but they are more
No Down Payment....
The USDA loan allows loan amounts up to 102% of the appraised value of the property. As a result, there is no need for a down payment. In addition, the loan amount may exceed the sales price to finance settlement cost, related expenses, appliance, and repairs to the home.
The USDA loan is based on the appraised value of the property rather than the sales price. When the appraised value supports a loan amount higher than the sales price, the loan may be used to pay for loan closing costs, pre-paid items, related expenses, appliances and/or home repairs. Because there is no down payment and because the loan can be used to cover various costs, there is little or no money out of pocket to close.
The USDA loan has relatively low mortgage insurance requirements, particularly when compared with the FHA loans. USDA charges 2.75% of the loan amount as an upfront premium at closing (that may be financed) and a .30% annual fee on the remaining balance.
The USDA loan does not have loan limits, but the loan amount is limited by the applicant's income and other qualifications. Families at the top of the moderate-income bracket with strong qualifications often can obtain a USDA loan for a higher amount than they would with other government and conforming conventional loans.
Many loan products require reserves equal to several mortgage payments. With a USDA, there
Less-than-perfect credit can be acceptable with a USDA
No Limit on Seller Concessions...
There is no limit to concessions or gifts, whereas FHA and other programs have a limit of 6% of the sales price. This is particularly beneficial in cases where a seller wants to pay closing costs and also fund an escrow account with net sales proceeds for post-closing repairs that the seller cannot make without first selling the house.
To be eligible for the USDA financing, the agency states that a household's annual earnings must not exceed the median household income for the area by more than 15 percent, with an allowance for the size of your household.
USDA Construction Loan
1st signature Lending