As I wrote in parts 1 and 2 of this series, government mortgage loans are becoming more and more popular because funds from conventional sources are very hard to obtain. In the final part of this series, we’ll highlight Rural Development mortgages provided by the U.S. Department of Agriculture (USDA).
Here are the major points of a USDA mortgage loan:
- No down payment required, 100% financing is possible
- 2% USDA funding fee may be financed
- Loan limits vary
- No mortgage insurance is required
- NOT limited to first-time homebuyers
- Owner occupants only (no loans on second homes or investment properties)
- Minimum credit score is 620
- Cash reserves are not required
- Maximum income limited to $109,000 in Honolulu for a family of 1-4
- Maximum income limited to $144,400 in Honolulu for a family of 5-8
- Home must be in a rural area (not vacant land)
- Subject to Federal funds availability
Please consult your Honolulu mortgage professional if you have questions. Contact Michael Zimmerman if you need a referral to a great mortgage advisor.
