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:
