Delaware USDA Rural Housing Loans
100% Financing – No Down Payment Loans!
Delaware USDA Guaranteed Rural Development Home Mortgage Loan is a flexible no down payment government insured mortgage loan program that is growing in popularity for rural areas of Delaware. The USDA Loan is designed to promote home ownership for borrowers with low to moderate incomes and who have limited savings for a down payment. Call 302-703-0727 to Apply for a Delaware USDA Rural Housing Loans or APPLY ONLINE
Delaware USDA Rural Housing loans will allow the mortgage lender to lend up to the home’s appraised value and even allow the home buyer to include closing costs in the actual loan if the home appraises for more than the purchase price. A common misconception about the USDA home loan program is that it’s for farmers, but this mortgage loan is for those who want to purchase a primary residence outside the urban areas. In Delaware you will find that many suburban areas qualify for this program as well such as Middletown and Smyrna.
Benefits of USDA Home Loan 100% Financing:
- 100% Financing
- Do NOT have to be a First Time Home Buyer
- No Down Payment
- 30 year low fixed rate loans
- No Prepayment Penalty
- Great Low FIXED Interest Rates
- Loan Amounts up to $417,000
- Possible to Roll Closing Costs into Loan if Appraises Higher
- No Cash Reserves Required
- UNLIMITED Seller Contribution toward Closing Costs
- 100% Gifted Closing Costs allowed
- Primary Residents only (no rentals/investment properties)
- Only Need a 620 Credit Score to Apply
- Can Use Delaware First Time Home Buyer Tax Credit Program
Delaware USDA Rural Housing Loans Guidelines
Delaware USDA Rural Housing Loans have two restrictions; income and geographical. The geographical restrictions are based on the U.S. census population data for each area of a particular county. Below is a diagram showing the eligible areas of New Castle County. The areas in orange are NOT Eligible
Kent County Eligible Areas are shown below.
Sussex County Eligible areas are shown below
How Can You Determine if a Property is Eligible for USDA Loan?
You can determine if a property in Delaware is eligible for financing through the USDA Rural Housing Loan program by entering the property address at the following website http://eligibility.sc.egov.usda.gov
The Eligible areas for USDA Rural Housing Loans were suppose to change on January 15, 2014 but the changed was delayed indefinitely until Congress passes legislation updating the Census data used for calculating the eligible areas from 2000 Census to the 2010 Census. When the 2010 Census Data is used the city of Middletown, Delaware and the city of Smyrna, Delaware will no longer be eligible for USDA financing but until further notice both cities are still eligible for 2014.
Delaware USDA Rural Housing Income Guidelines:
The income limits for Delaware USDA Rural Housing loans are based on the number of people in the house and the county that the property is located.
New Castle County Maximum Income Limits for 2017
1 -4 Person 5-8 Person
$0 – $95,650 $0 – $126,250
Kent County & Sussex County Maximum Income Limits for 2017
1 – 4 Person 5 – 8 Person
$0 – $79,200 $0 – $104,550
What is the USDA Guarantee Fee?
USDA Rural Housing Loans require that borrowers pay a upfront mortgage guarantee fee that as of June 2017 is 1% of the loan amount but USDA lets you finance this upfront fee into the loan. For example if you are purchasing a home for $200,000 and want to borrower 100% which is $200,000, USDA requires the borrower to pay a 1% guarantee fee which would be $2,000. This $2,000 fee can be financed into the loan so your total USDA loan would be $202,000.
USDA Rural Loans also require a monthly fee of 0.35% of the loan amount on an annual basis. This monthly fee is much lower than a comparable FHA Loan at 0.85% or a conventional loan with less than 20% down.
What is the USDA Direct Loan Program?
The USDA Direct Loan Program is a program administered by RHS directly to home buyers who income is below 80% of the median income limit and cannot obtain credit otherwise. 40% of the loans under the direct program must be made each year to people under 60% of median income limit. You must apply directly with the RHS to obtain this program as it is not available from a private lender.
Primary Residential Mortgage, Inc.
248 E Chestnut Hill Rd, Newark, DE 19713