Primary Residential Mortgage, Inc.
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The real estate market tin Bryant Arkansas is doing exceptional well compared to the rest of the state. The city is seeing very strong housing sales every year. One of the more popular mortgage products for this market is the Rural Development Home Loan or as its often referred to just as the RD Loan. The RD loan was designed for low to moderate income families in rural areas. Bryant happens to still qualify based on its population but we must assume at some point it will not.
One of the most attractive features of the Bryant Arkansas Rural Development Loan is the fact that it offers 100% no money down financing to borrowers. With rates continuing to be at all-time lows borrowers are less inclined to put money down when they don’t have too. Additionally the RD Loan allows the seller to pay up to 6% of the sales price towards the borrowers closing costs which in most cases is more than enough to cover everything. These two features alone are huge for borrowers because they literally can get into a home with no money out of pocket with payments often times lower than what they are paying in rent.
Another big feature of the RD Loan is the flexibility in credit standards. The guidelines allow for a borrower to only be 3 years removed from bankruptcy and foreclosure. Additionally borrowers can have credit scores as low as 640 and still qualify. Past medical collections and charge offs are overlooked as well.
The monthly mortgage insurance rate is another big advantage to the Rural Development Home Loan. Borrowers in Bryant, AR who decide to utilize the RD Loan over the FHA loan will pay much less over the life of the loan in monthly mortgage insurance. The FHA loan uses a percentage of .85%. The RD Loan uses a monthly percentage of .50%. Simple math tells us that this is a significant difference that can save hundreds if not thousands of dollars.
There are only two restrictions that typically keep someone from obtaining a RD Loan versus other loan types which are property location and household income. The RD Loan requires the property to be located in a Rural Development approved area which they refer to as an eligible area. These areas are based on population and the most recent census. So as populations of a given area grows the map will shift and adjust to accommodate reflecting eligible and non-eligible areas. The other major restriction is household income. This is something that often catches people because this is income from all members of the home regardless if they are on the loan or not. The Rural Development loan has maximum household income restriction’s based on the area.
Borrowers in Bryant Arkansas are taking advantage of the Rural Development loan in large numbers due to all the benefits it has to offer. With low interest rates, no down payment, and a low factor for monthly mortgage insurance people are finding the Rural Development loan to be the best option for home financing.<< Back to the list.