Union Home Mortgage Corp. Announces Changes in USDA RD Guidelines
The USDA RD Loan program is a magnificent program and the Partners at UHM are thrilled to see these underwriting updates benefit our borrowers...
Strongsville, OH (PRWEB) February 09, 2015
Union Home Mortgage Corp. (UHM) is excited to announce that the United States Department of Agriculture (USDA) Rural Development (RD) Loan underwriting guidelines have changed to offer more options for borrowers. The USDA’s RD Loans were designed to help improve the economy and quality of life in rural America and, with these updated underwriting guidelines, borrowers can expect to see these adjustments work for their benefit.
Of the many updates to the underwriting guidelines for USDA RD Loans, there is no longer a set limit on the number or size of outbuildings on a specific property. While this may seem like an unusual highlight to those who are not familiar with this loan program, this actually provides a lot of opportunity for interested borrowers.
“Outbuildings used to be the ‘kiss of death’ for those looking to get approved for a USDA RD Loan,” Mike Jones, UHM’s National Sales Manager, said. “Considering the location of many of the homes that qualify for USDA RD Loans, this restriction was very limiting.”
“With these recent updates to the underwriting guidelines, outbuildings are no longer as burdensome as they used to be,” he added. “This will open a lot of doors for interested buyers.”
Other important updates include: No value adjustments for in-ground pools, flood zone properties are now eligible for USDA financing, relaxed guidance on borrowers with student loans, an increased ability for borrowers with fixed income, the removal of the 30 percent rule for the ratio of value of land-to-home, and more.
“When our CEO, Bill Cosgrove, was inducted as the 2015 MBA Chairman, he announced that he wanted to open more doors for home buyers,” Jones said. “These recent changes do just that.”
“The USDA RD Loan program is a magnificent program and the Partners at UHM are thrilled to see these underwriting updates benefit our borrowers who are looking to buy a home in a rural setting.”
The USDA RD Loan program was set up to support rural settings through essential public facilities and services, such as water and sewer systems, housing, health clinics, emergency service facilities, and electric and telephone services. This program was also implemented to help promote the economies in these areas by supporting loans to businesses, through banks and community-managed lending pools. With these loosened restrictions, more borrowers can expect to take advantage of this loan program.
“At UHM, we love to give back to the community,” Jones said. “When we help place homeowners and businesses in these areas, it helps to grow the economy in rural America.”
“This is our way of giving back and helping our customers get into the right home for their needs,” he added.
To find out more about how the updated USDA RD underwriting guidelines may affect your home buying process or to see if you’re eligible for this loan program, please visit UnionHomeMortgage.com to speak with a mortgage professional.