Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply.
This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.
Batesville, Arkansas Rural Home Loans
Homeowners in Batesville Arkansas have access to one of the best loan products available in today’s market. The Arkansas USDA Home Loan is available in Batesville for qualified home buyers. This loan product was designed for low to moderate income borrowers in rural areas of the country. USDA, or Unites States Department of Agriculture, is the government agency that oversees the program.
The Rural Home Loan has several attractive features. One of these features is the low monthly mortgage insurance. Mortgage Insurance is typically required on most loans where the borrower does not have 20% to put down. The amount of monthly mortgage insurance is determined by a factor or percentage of the actual loan amount. The Rural Home Loan currently uses a factor of .50%. Comparably, the factor used by FHA loans is .85%. The savings over the life of the loan can add up to be hundreds, if not thousands, of dollars.
Another attractive feature for borrowers is the flexibility in the credit requirements. The Rural Home Loan doesn’t enforce a minimum credit score, however, most lenders usually require a credit score of 640. Borrowers only have to be removed from bankruptcy by 2 years and foreclosure by 3 years. There is a minimum tradeline requirement, but alternative tradelines are allowed. They can be lines of credit such as utility bills and cell phone bills.
The most attractive feature is the down payment requirement. The USDA Rural Home Loan does not require any money down. It is one or two loan programs today that do not require any money down. Not only is it no money down, the program also allows the seller to pay up to 6% of the sales price towards closing costs and in most cases this covers everything. Borrowers can literally buy a home with little to no money out of pocket.