USDA Rural Development

Buyers looking for 100% financing in areas that are designated as eligible for USDA Rural Development loans can get a great deal with this program. Though popular with first-time buyers, you do not need to be a first-time buyer to be eligible. Your lender will approve and fund the loan, which is then guaranteed by USDA. Some of the benefits include:

• No down-payment required
• Sellers are allowed to pay up to 6% of sales price towards buyer’s closing costs
• Geographically restricted to designated areas
• Available for primary residence only. Borrowers cannot own other real estate
• Property must be in an eligible rural area (check for eligibility here: https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do )
• Subject to maximum household income limits, which vary by size of household and location
• 1% USDA Guarantee fee, which can be financed into the loan
• Sellers allowed to pay up to 6% of sales price towards buyer’s closing costs, pre-paids, and escrows