USDA Rural Development Loan is the New Alternative to Down Payment Assistance

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With the down payment assistance programs expiring on October 1, 2008 homebuyers and builders are looking for alternatives. The little known USDA Rural Development Loan may be the answer in some areas which qualify as rural.

For the first time in a few years, due to lower home prices, some buyers can afford a home but having to come up with 3.5% down payment is still very difficult. To compensate for the loss of the nonprofit down payment assistance programs, lenders and builders are starting to use the USDA Guaranteed Rural Development Loan.

"Large part of my business is first-time homebuyers. I would say that ninety percent of the buyers have good credit and can afford the monthly payments but are strapped for cash," said Stan Stoykov, Broker of Best Deal Realty "The USDA loan offers buyers a way to own a new home with no down payment and retain their savings."

Best Deal Realty (http://www.bestdealhome.com) offers quick guide on the eligibility requirements for the USDA rural development loan.

Some of the benefits of the USDA rural loan are no down payment, no PMI, no maximum purchase limit and streamlined processing for buyers with higher credit score. This loan is not limited to first time buyers.

The homes need to be in rural designated areas and the buyers' household income needs to be within the agency's limits. The buyers need to have reasonable credit and repayment abilities. Best Deal Realty (http://www.bestdealhome.com) specializes in new home sales in the Tampa Bay area. Best Deal does not provide mortgages and the guide is offered as a general information. Please consult a lender for your particular situation.

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Stan Stoykov
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