Delaware USDA Rural Housing Loans – How much can you borrower?
Delaware USDA Rural Housing Loans How Much Can You Borrower?
Delaware USDA Rural Housing Loans can be used to purchase a home and allow you to the borrower up to 101% of the appraised value. This is a big difference from Delaware conventional loans and other government loans such as Delaware FHA Loan or Delaware VA Loans. Every other loan bases the maximum amount you can borrower off the LOWER of the purchase price or appraised value.
USDA Rural Development Loans will let you borrower up to 101% of the appraised value no matter what the purchase price. So let’s say you are buying a house for $210,000 and it appraises for $220,000. You could borrower up to 101% of $220,000 which would be $222,200. Now you can’t get paid to buy a house so you can only borrower above the purchase price to cover your closing costs. So if you can’t negotiate for the seller to pay your closing costs, you could finance them into your USDA loan if home appraises higher than the purchase price. See Example Below:
You can potentially buy a home with no out of pocket costs if you are buying the property below market value. This is the only way left to the borrower to get a loan for 100% financing except for a Veterans Administration Loan.
What are the restrictions for a USDA Loan?
There are only two restrictions for a Delaware USDA Rural Housing Loan – Income and Geographical Restrictions (USDA Eligibility Map). There are no loan limits for USDA Home Loans.
For Delaware USDA Income Guidelines please visit Delaware USDA Income Limits
For USDA property eligibility Delaware visit Delaware USDA Property Eligibility
Rural Housing Loans must also be underwritten by Rural Development after the lender clears the file to close so you must take account of the USDA underwriting turn times for Rural Development to underwrite the loans when planning your closing date.
How Do You Apply for a Delaware USDA Rural Housing Loan?
If you would like to apply for a USDA Rural Housing Loan then please feel free to call the John Thomas Team at 302-703-0727 or you can APPLY ONLINE.
If you are looking for USDA mortgage lenders in Delaware, The John Thomas Team are certified USDA Rural Housing Loan Specialists and have been helping people qualify for these loans for the past 10 years.
John R. Thomas – NMLS 38783
Certified Mortgage Planner – Primary Residential Mortgage, Inc.
302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office
248 E Chestnut Hill Rd, Newark, DE 19713
Primary Residential Mortgage, Inc is a licensed lender in 45 states.