The US Department of Agriculture (USDA) offers two types of loan “guarantee” programs. The first, called DIRECT lending is provides a mortgage to extreme low income families and it has payment subsidy and recapture clauses. This loan is not very common.
The second loan program called GRH loans is the primary loan program sponsored by the Dept of Agriculture. But don’t let the name fool you. This program is not simply for totally Rural areas. It is primarily offered in communities of less than 20,000 residents but there are many places in NC that this program is a great alternative.
This is a fixed rate program only and it has a Funding fee just like the other two Government sponsored programs of FHA and VA. This program, unlike FHA and VA DOES have income limits. This is the only program where the property AND the borrower must be acceptable. This loan, like VA, does NOT have monthly mortgage insurance and also like VA it will allow the borrower to obtain 100% financing for their low income mortgage.
This program also has a feature similar to the FHA 203k streamline where some monies may be added for repairs/renovations that do not impact the safety or livability of a home.
Ask us if you qualify! It’s a simple process and you may be closer than you think.