Johnson County, AR has

No Money Down Loans Available

to purchase a Home!

 

 

 

RURAL DEVELOPMENT LOANS

What does this program do?  100% loans to eligible rural home buyers.

Buyer pays the appraisal fee, normally $550, and that's it!

What Types of Loans does USDA offer in Arkansas?
Currently, there are two kinds of USDA Home Loans available in Arkansas for single family households:
USDA Guaranteed Home Mortgage Loans are the most common type of USDA Loan in Arkansas and allow for higher income limits and 100% financing for home purchases. USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area. Area income limits for this program can be viewed here. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.
USDA Direct Housing Loans are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain homeownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to see area income limits for this program.
 What factors determine if I am eligible for an Arkansas Rural Development Loan?
There are several things to determine a borrower’s eligibility.  The first thing to consider is credit score. While USDA doesn’t set a min score most lenders require a 640 or better score.  The next is debt to income ratio. A standard approval requires a housing ration of no more than 29%. This means that the total home payment each month cannot exceed 29% of the borrower’s gross income. Additionally a borrower’s total debt including housing payment cannot exceed 41% of the monthly gross income. These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Guaranteed Loan income limits for your area can be found at here. Maximum USDA Direct Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.
What is the maximum amount that I can borrow?
The maximum amount for an USDA home loan is determined by: USDA Loans actually do not have a maximum loan amount. The debt to income ratio will determine the max loan amount on each loan because the borrower’s will be limited on loan amount by the ratios set forth. As stated earlier the max ratios are 29% and 41%. Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for your area can be found at here.

 Maximum financing: The maximum USDA Rural Development Loan amount is 102% of the appraised value of the home (100% plus the 2% USDA RD Loan guarantee fee).
How much money will I need for the down payment and closing costs?
USDA Rural home loans do not require a down payment. Borrowers can get 100% no money down loans.
What are the allowable property types for USDA Home Loans?
USDA requires all loans to be for Owner Occupied properties. The different types of allowable properties are SFR, Condos, Manufactured Homes, and PUD’s. Lenders will decide on each property type as to if they will loan on those certain properties.

 

Who may apply for this program?Applicants must:

 

  • Meet income-eligibility.•Agree to personally occupy the dwelling as their primary residence.
  • Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien.
  • Have the legal capacity to incur the loan obligation.
  • Have not been suspended or debarred from participation in federal programs.
  • Demonstrate the willingness to meet credit obligations in a timely manner.
  • Purchase a property that meets all program criteria

 


 

 

VA LOANS

VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms.

 

VA Home Loan Advantages

The guarantee VA provides to lenders allows them to provide you with more favorable terms, including:

 

  • No down payment as long as the sales price doesn't exceed the appraised value.
  • No private mortgage insurance premium requirement.
  • VA rules limit the amount you can be charged for closing costs.
  • Closing costs may be paid by the seller.
  • The lender can't charge you a penalty fee if you pay the loan off early.
  • VA may be able to provide you some assistance if you run into difficulty making payments.

 

You should also know that:

  • You don't have to be a first-time home buyer.
  • You can reuse the benefit.
  • VA-backed loans are assumable, as long as the person assuming the loan qualifies.