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Buying a home can often be a very stressful process especially when it comes obtaining a home loan. In today’s market there are only a handful of loan products available. Borrowers in Dumas Arkansas are very fortunate because the area where they live qualifies for the Rural Home Loan. The Rural Home Loan better known as the USDA Loan or Rd Loan is a loan program administered by the United States Department of Agriculture. The program was designed for low to moderate income families in areas that are classified as Rural. This can be a little misleading but the easiest way to explain is that it is for your non major city or towns.
The loan product itself is one of if not the best loan product available today. One of the major features is that it is a 100% no money down home loan. Other than the VA Home Loan there are not any other $0 money down products today. Not only do borrower’s not have to put any money down also it is very common that they do not come out of pocket any money. The home sellers are allowed 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.
The USDA Rural Home Loan is often a lower monthly expense for borrower’s compared to other loan types because of the low monthly mortgage insurance. The factor used for mortgage insurance is .50% which is very low compared to the FHA loan which is .85%. The savings over the life of the loan can be well into the thousands. The low MI also allows borrower’s to afford more home for the same amount of money monthly. Another indirect result of the USDA Loan is the savings on real estate taxes. Since most USDA Loans are in smaller towns or areas real estate taxes are typically much lower than they would be on that same house in a more populated area.
Borrowers in Dumas Arkansas that want to obtain a USDA Rural Loan also have the advantage of the flexible credit criteria associated with the loan. Most lenders allow credit scores as low as 640. Additionally borrower’s only have to be 2 years removed from bankruptcy and 3 years removed from foreclosure. There are minimal trade line requirements and alternative credit such as utility bills are often used to substitute more traditional credit.
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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.
