Mortgage Loans For NJ Home Buyers – USDA Rural Development 502 Guaranteed Housing Loan Program
We’ve just been informed of a new mortgage loan program available to New Jersey Home Buyers. The mortgage loan program is called USDA Rural Development 502 Guaranteed Housing Loan Program and has the following special advantages*:
- 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
- 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 score of 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 (see Note 1).
The 502 Guaranteed Mortgage Loan is a guaranteed loan secured by Rural Development is made by an approved mortgage lender to a borrower who is unable to qualify fully for a conventional loan because of substantial down-payment requirements.
If you’d like to know more about this and what areas in New Jersey are eligible for this loan, please contact us at 609-417-1086.
* To qualified borrowers
** Appraisal may be exceeded by amount of Gauranteed Fee
*** FICO score may be adjusted upwards by the Agency
Note 1: 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.
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[...] we wrote about this program a few months back. The blog entry detailed this little know mortgage loan program. The program allows no-money-down purchases. [...]