The Rural Housing Service (RHS)/ United States Department of Agriculture (USDA) Loan is a no down payment, 100% financing program, which provides families with a low to moderate income level the opportunity to own a home in eligible rural areas.
What is it?
The RHS loan provides no down payment financing in select rural areas. This in turn, attracts home buyers to less dense population areas. However, the family income cannot surpass an income threshold, and the property must be located in an eligible area.
Is it right for me?
This no down payment/ 100% financing loan carries with it some strict guidelines but if you and your property qualify, it is a pretty great option! In order to qualify for a RHS loan, your income can’t exceed 115% of the median household income; your mortgage banker can tell you if you qualify or you can determine your eligibility here. Your credit score must be at least 580. Additionally, you must be a U.S. citizen, U.S. non-citizen national, or Qualified Alien. All that said, if you qualify to obtain conventional mortgage financing without private mortgage insurance (PMI) then you aren’t eligible for a RHS loan. As mentioned above, the property must be in an eligible area; your mortgage banker can tell you if your property qualifies or you can determine your property eligibility here. Additionally, you must plan to use your home as your primary residence in order to obtain this type of mortgage.
Why is it different from other mortgages?
The reason why your lender can offer a loan without a down payment and a lower credit score than many conventional loans is because it is backed by the RHS and USDA. Just like the FHA loan, this loan is not funded by these organizations but instead is funded by your mortgage lender and insured by RHS /USDA. In order to secure the guarantee of these organizations, qualified borrowers are required to purchase mortgage insurance— and premium payments are made to RHS/USDA. So your mortgage lender takes on less of a risk since these organizations will pay a claim if you default on the mortgage.
Give me all the details.
The home must meet FHA guidelines.
RHS mortgages are assumable.
Gifts & grant programs are often available in conjunction with this loan, depending on where you are located.
The property cannot be income producing.
Given that a good credit history has been re-established, you may qualify for an RHS loan even if you’ve gone through bankruptcy or foreclosure. You can find more information here.
Being your own boss shouldn’t mean a backbreaking path to homeownership. Self-employed borrowers can relax with Stockton Mortgage’s bank statement program, with alternative documentation options of 12 or 24 months of bank statements.
Our conventional loans can be a fixed rate or adjustable rate mortgage. With a variety of down payment options, the minimum down payment requirement is 3%. There are also options that avoid mortgage insurance.
This loan program helps medical professionals qualify for a home loan, even with student loans and limited savings. Eligible borrowers include currently practicing medical professionals or those who’s employment will start within 90 days of closing.
The Federal Housing Administration (FHA) loan is a great option for borrowers without a large amount in savings.
Hobby Farm Home Loan
The Hobby Farm loan is for homes with 5 – 160 acres. Rural areas, non-contiguous parcels permitted. Not eligible for full time Farming operations. This program is good for customers looking for a place to have horses, hunting property, etc.
Home Equity Line of Credit (HELOC)
This alternative to a cash-out refinance allows a borrower to use the equity in their home without refinancing their mortgage.
Investor Cash Flow Loan
With Stockton Mortgage’s Investor Cash Flow Loan, it’s never been easier to break into real estate investing. This program allows you to utilize the future income rental of a property to determine cash flow – meaning that if portfolio growth is a goal, the Cash Flow Loan could make it happen.
Stockton Mortgage offers solutions for people who have an Individual Tax Identification Number (ITIN) who are looking for a mortgage or wish to finance their existing mortgage. With our ITIN Loan Program, we may be able to utilize written verification of employment and bank statement payroll deposits in lieu of paystubs.
A great option for large loan amounts; too large for a conventional loan. Loan amounts up to $3 Million for owner occupied or $2 Million for second home. This program varies by state, please ask your mortgage banker for more information.
Low Down Payment, New Construction Loans
We offer new construction loans for VA, FHA and USDA Loans. These programs are good for customers that can’t find an existing home to purchase.