USDA Rural Development 502

 

 Guaranteed Housing Loan Program –  State of New Jersey

 

WHAT ARE THE SPECIAL ADVANTAGES OF THE LOAN?

  • No Down Payment 
  • No Mortgage Insurance 
  • No Cash Reserves Required 
  • No stated maximum loan amount; maximum loan based on repayment ability 
  • Loan up to 102%* of appraised value allowed…not the lesser of Sale Price or Appraisal  
  • No First Time Homebuyer Requirement 
  • New and Existing Homes OK 
  • Fully amortized 30-year fixed rate loan 
  • No Prepayment Penalty 
  • No Seller Contribution Limit 
  • No limitation on source of funds for closing costs 
  • 100% gifted closing cost or down payment assistance is permitted 
  • Loan amount can include closing costs and repairs up to appraised value 

    • While an RD GRH loan is not FICO Score driven RD does reward you for higher scores. Borrowers with a 620*** mid-score or higher get an automatic "Credit Waiver" and do not need to explain credit derogatory including BANKRUPTCY and no Rental verification is required.

     

     

     

  *** Appraisal may be exceeded by amount of Guarantee Fee** Exception: Any applicant with delinquent Federal debts, regardless of credit risk score and any applicant with an unsatisfactory payment history on a previous Rural Development loan, regardless of credit risk score.For general information purposes only. Loan approval subject to Lender underwriting guidelines and RD regulations 1980-D and applicable ANs.***Fico score maybe adjusted upwards by the Agency.