USDA Rural Development Home Loans Tennessee

Rural Housing Loans Basic
If you are you looking to purchase a new home in a rural community, A USDA Rural Development Loan in Tennessee may be your best bet. The U.S. Dept. of Agriculture (USDA) has developed a mortgage home loan guaranty program that can helps create home ownership in rural communities around the country. Established in 1994, a Rural Development mortgage home loan offers qualified borrowers a chance to find a home loan with easier qualifications and funding choices than other conventional loans. Keep in mind that the USDA Rural Development doesn’t fund the mortgage home loans. Instead, the program has partnered with a select group of lenders in all states who will lend the money with a repayment guaranty from the USDA, if ever the loan should ever default. The loan is secured by an upfront mortgage insurance premium that could be rolled into the loan (call me for details). This offers lenders confidence in allowing these loans to qualified individuals who meet the USDA Rural Development underwriting guidelines. These loans have become even more popular in the last year. This is because of the 100% financing component that is attached with this loan. This will alllow for a true No Money Down Home Loan option here in Tennessee. The downfall is that it is limited to non-metropolitan areas.

Eligibility Requirements of a Rural Development Loan in Tennessee
Not everyone can qualify for this rural housing loan. Income and geography plays a huge factor in a approval or denial. A few of the eligibility requirements that determine if you qualify for a USDA Rural Development Loan are:
1. The County and Zip Code you are planning to move to. (Property Eligibility: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do)
2. Income is limited to 115% of US Median Income. (take a look at the above link for this as well)
These are two of the major factors involved in qualifying for your new loan. You will have other qualifying factors but if you have a green light so far, let continue to see if this will work for you.

Benefits of a USDA Loan in Tennessee
1. 100% Financing - No Money Down Home Loan
2. No Mortgage Insurance
3. Low Fixed Interest Rates
4. Lenient Credit Guidelines
5. Seller of the property can contribute towards closing cost (even though this is a 100% Loan, you are still liable for the closing cost).

This is just a brief overview of this program. The actual guidelines are hundreds of pages. If you have read so far, you are interested in learning more about this loan program. Give me a call at 615-942-2210. You can also fill out a pre-qualification worksheet to see how much you qualify for. I look forward to helping you make your dream of homeownership a reality!