USDA Rural Development

Buyers looking for 100% financing in ares 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