USDA Rural Development | Down Payment Assistance Program
ZERO Down Payment Assistance Programs
Loan Guarantee Program (Section 502)
Under the Guaranteed Loan program, the Housing and Community Facilities Programs guarantees loans made by private sector lenders. (A loan guarantee through HCFP means that, should the individual borrower default on the loan, HCFP will pay the private financier for the loan.) The individual works with the private lender and makes his or her payments to that lender.
Under the terms of the program, an individual or family may borrow up to 100% of the appraised value of the home, which eliminates the need for a down payment. Since a common barrier to owning a home for many people is the lack of funds to make a down payment, the availability of the loan guarantees from HCFP makes the reality of owning a home available to a much larger percentage of Americans.
Eligibility:
Moderate income (115% of Area Median Income)
Acceptable credit history
U.S. citizen or qualified resident alien
Owner-occupant
Additional lender requirements
Terms:
Loans are for 30 years. The promissory note interest rate is set by the lender.
Approval:
Rural Development officials have the authority to approve most Section 502 loan guarantee requests.
There is no required down payment. The lender must also determine repayment feasibility, using ratios of repayment (gross) income to PITI and to total family debt.
Call The Trey Affolter Team @ 253-222-6000
to learn more and to take advantage of the USDA Programs!
Under the Guaranteed Loan program, the Housing and Community Facilities Program
