We hear it all the time, “my friend told me to call you about a mortgage loan they got from you – something like Rural Development”. Buyers don’t know what they are asking for – but they know their friends bought a home using it and they want to, too!
Realtors and buyers alike don’t know when to use the USDA Rural Development program – other lenders who offer the program don’t always even know (or want) to tell buyers when to use it - but lenders like RMN do know when to use it! And most importantly, we aren’t scared of the program. We know how to get them done just like a conventional loan – we have literally done thousands of them.
Here are a few tips:
- If you are looking at homes in any town outside of Iowa City, Cedar Rapids or Coralville – the Rural Development loan is most likely an option! Examples include North Liberty, Tiffin, Swisher, Newton, Washington, Williamsburg, Solon, Grinnell, to name a few.
- The Rural Development program requires NO money down. That's right, 100% financing with a 30-year fixed rate. There is a fee similar to PMI, called a 'Guarantee Fee', but this fee is typically offset by a lower interest rate and the security of a fixed rate loan.
- Are you putting down 15% or less? Be sure your lender showed you the RD option! Don’t let them say “Oh, you don’t want to do this program, it costs too much or takes too long” – that’s an excuse because they don’t want to do it. Although this may sound negative, it is unfortunately accurate.
- Want to impress your buyers as their Realtor or get excited as a buyer? You should know that the RD interest rate is actually lower than a conventional interest rate – yes, it’s true! Even with no money down.
Why do other lenders discourage this program or not offer it? Because they are scared they won't do it right. They offer what's easy for them, like an in-house ARM (Adjustable Rate Mortgage).
We aren't scared. We believe in fixed rate financing. We believe in doing what's best for the borrower. Just call or text us anytime – even on nights and weekends – we love to hear from you! Contact us today to learn more about the USDA Rural Development loan.