If you qualify for an Ohio USDA mortgage,
many times it can be a more attractive mortgage program than FHA!
Rural Development - Ohio has been a leader nationally in utilizing the
Guaranteed Rural Housing program. Since 1991, we have assisted over 15,000
families join the ranks of homeownership.
Potential home owners, Realtors, builders and applicants can all benefit from
the Guaranteed Rural Housing program. The combination of NO DOWNPAYMENT
required and NO MORTGAGE INSURANCE needed with competitive 30 year fixed
rates makes the Guaranteed Rural Housing program an attractive source of
The highlights of the Guaranteed Rural Housing program are as follows:
To be considered eligible for a Guaranteed Rural Housing
Loan, applicants must:
Have an adequate and dependable income;
Be a U.S. citizen, qualified alien, or be legally admitted to the United
States for permanent residence;
Have an adjusted annual household income that does not exceed the moderate
income limit established for the area. A family's income includes the total
gross income of the applicant, co-applicant and any other adults in the
household. Applicants may be eligible to make certain adjustments to gross
income - such as annual child care expenses and $480 for each minor child - in
order to qualify. USDA Rural Development field offices can provide
information on the moderate income limits for the areas that fall within their
jurisdiction, and can provide further guidance on calculating household
income. There is an automated income eligibility calculator available at:
Have a credit history that indicates a reasonable willingness to meet
obligations as they become due;
Have repayment ability based on the following ratios: Principle,
Interest, Taxes, and Insurance (PITI) divided by gross monthly income must be
equal to or less than 29 percent. Total debt divided by gross monthly income
must be equal to, or less than, 41 percent.
Homes That Qualify:
Guaranteed loans can be made on either new or existing homes;
Existing homes must be structurally sound, functionally adequate, and in
There are no restrictions on the size or design of the home financed;
The home must not be used for income-producing purposes;
Homes must be located in rural areas. Rural areas include open country
and places with a population of 10,000 or less and - under certain conditions
- towns and cities with between 10,000 and 25,000 residents. USDA Rural
Development field offices can determine eligible areas. There is an automated
rural area eligibility calculator at:
Highlights of the USDA Guaranteed Rural Housing Loan
Loans may be for up to 100 percent (102 percent if the guarantee fee is
included in the loan) of appraised value or for the acquisition cost,
whichever is less. No downpayment is required;
Mortgages are 30-year fixed rate at market interest rates;
Loans may include funds for closing costs, the guarantee fee, legal fees,
title services, cost of establishing an escrow account and other pre-paid
items, if the appraised value is higher than sales price;
Sellers may contribute to the buyer's closing costs;
Home buyers make application with participating lenders;
Buyers must personally occupy the dwelling following the purchase;
Loans may be made to refinance either existing USDA Rural Development
Guaranteed housing loans or our Section 502 Direct housing loans;
For purchase loans, a one-time guarantee fee equal to 2.0 percent of the
loan amount is charged to the lender. The charge for refinance loans is 0.5
percent. Typically, the lender passes on this expense to the borrower as a
closing cost. After the one-time fee is paid, there is no recurring monthly
expense charged for guaranteeing the loan;
Closed loans have secondary market acceptability, including Freddie Mac,
Fannie Mae, Ginnie Mae pools, and many state housing finance agencies;
Guaranteed loans are subject to the provisions of the Civil Rights
statutes, including the Equal Credit Opportunity Act.
Do not have sufficient cash for a 20% down
payment plus pay typical loan closing and relocation expenses.
Be a U.S. citizen, a U.S. non-citizen
national or a “qualified alien”.
Provide stable and dependable
income for repayment ability.
Have a credit history that indicates a
willingness to meet obligations as they become due.
income that is within Rural Development guidelines based
on the number of persons who will occupy the home.
Purchase a residential property that is
located in a
Rural Development eligible area.
If you qualify for an Ohio USDA mortgage, many times it can be a more
attractive mortgage program than FHA!
"Doing Good things for Good
Is our goal, as
you look back you will say it was an enjoyable experience to have worked
with Tim Bradford
and the other experienced professionals at American Midwest Mortgage.
Let us assist you with a USDA Rural home loan in Toledo Toledo Ohio.
Bradford -- OHIO MB.803389/LO.007173 ---- NMLS CO.142066/LO.250013 Pending
Tim Bradford -- OHIO MB.803389/LO.007173 ---- NMLS