USDA Rural Development Loans at PCCU!
Home loans come in many different flavors and a good loan officer will work with you to help pick the right one. Too often people overlook or rule out the Rural Development loan from the USDA. When people hear the words Rural Development and US Department of Agriculture they think that they have to live in the country on a farm. In fact, these loans are available in all of Henry County, even in the middle of New Castle or Knightstown; as well as much of Wayne County, outside of Richmond.
So once we get past the name, why might someone choose a Rural Development loan? For starters, they don't require a down payment. That's correct, you don't have to put any money down when you're buying a home with a Rural Development loan. This makes it a great option for those who want to purchase a home, but haven't been able to save up for the down payment.
Second, the seller can contribute up to 6% of the purchase price to help you pay closing costs and prepaids. this means that on a purchase price of $50,000 the seller can contribute up to $3,000 towards the buyer's costs. This reduces the amount of money you have to bring to closing, making it easier for you to become a home owner.
Finally, the minimum credit score required for a Rural Development loan is 620, an option not available on most conventional loans without making a large down payment (as in 20% of the purchase price large!). Additionally, if you don't have much of a traditional credit history they will still consider your application. Instead, they will look at your history of paying bills that don't get reported to a credit bureau, like rent and utilities. You'll need to pull together more documents to fulfill the requirements, but our loan officers will walk you through each step.
When you consider the many features of the USDA's Rural Development loans it's easy to see why they're a good choice for many first time home buyers. They are also a good choice for people who pay their bills, but haven't been on the credit bureaus' radar because they pay cash for most things and don't fit into the nice, neat little box of a conventional mortgage. Ask your loan officer how a Rural Development loan can help you become a home owner!
PCCU is an Equal Opportunity Lender.