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Cabot, Arkansas Rural Home Loan
Cabot Arkansas has exploded in population and growth over the last 20 years. Much of the growth is attributed to its close proximity to Little Rock. Its close enough where people can drive in to work but far enough where it doesn’t have some of the issues that a larger would have. Also the Cabot school system is one of the best in Arkansas. The growth has fueled the housing market. New home and existing home sales continue to rise. Home buyers are taking advantage of the Cabot Arkansas Rural Home Loan.
The advantages of the Rural Loan are what have made it so popular. The biggest advantage is the no money down 100% financing feature. Buyers can purchase a home with a Rural Loan without having to put any money down. Outside of the Veterans loan it is the only 100% option available to home buyers in Cabot.
Another advantage to home buyers is the flexible credit standards. Buyers with credit issues are not automatically turned away with the USDA Loan. For example PRMI offers the loan with a 620 credit score. Someone only has to be 2 years out of bankruptcy to obtain 100% financing. While there are minimal trade line requirements buyers are allowed to substitute those trade lines when they don’t have them. They can use alternative trade lines such as cell phone bills and utility bills in their place.
The USDA Rural Loan also allows the seller to pay up to 6% of the sales price towards the buyers closing costs. This most often guarantees the buyer will get into a home with no money out of pocket. For example on a $100k loan the seller can pay $6k of the closing costs. Which is usually more than enough to cover everything.
The USDA Loan has a upfront and annual guarantee fee. This is the equivalent of mortgage insurance. This is how the program is funded. The current upfront fee is 2.75% of the loan amount. While it’s called a upfront fee that’s a little misleading. It’s actually rolled into the loan so it has little impact on the monthly payment. The annual fee is a little misleading because it’s actually paid out monthly with a factor of .50%. It actually has a larger impact on the monthly payment. With that being said it is still significantly less than other loan types.
There are many reasons why buyers are flocking to Cabot Arkansas and the USDA Loan just adds to those reasons. No money down with flexible credit make the USDA Loan very attractive in Cabot.