Horsham, PA ( JustPrNews ) November 13, 2010 – The USDA Rural Home Loan Program also commonly referred as Section 502 Loan Program provides low-cost insured home mortgages to people with low or moderate income. These home loans are ideal for homebuyers with limited savings, and for low to moderate income buyers. The USDA Rural Home Loan Program, guarantees home loans to lenders in specifically targeted rural areas on mortgage loans made to low and moderate income applicants.
“At Gateway Funding, we provide loans under the USDA Rural Housing Program. There are basically two different types of loans for single family households that are offered under this program- the USDA Guaranteed Rural Housing Loans and the USDA Direct Rural Housing Loans. To know if your area is eligible and also to know more on the income limits to qualify under the program, you could contact our mortgage specialist, who would explain you about the eligibility details” says Gateway Funding Diversified Mortgage Services, LP.
The USDA Guaranteed Rural Housing Loan is the most common type of loan and allows for higher income limits and also for 100% financing for home purchases. Loan applicants under this scheme may have an income up to 115% of the median household income. These are 30 year loans with a fixed rate. The USDA Rural Housing Service shall however charge an upfront fee of 3.5% and also collect an annual fee of 0.5 % on the balance loan amount.
The USDA Direct Rural Housing Loans aren’t as popular as their counterpart and can be only availed by people from low to very low income households. Very low can be defined as below 50 of the area median and low income is anywhere between 50-80% of the median.
“The best aspect of this loan is that they are not credit score driven, although the applicant has to prove that he or she has a decent record of paying his or her bills on time. These loans neither require down payment nor reserves. Also with a onetime guarantee fee, you can opt out of the monthly mortgage insurance” explains a Gateway Funding Loan Officer. Gateway Funding Inc. has been providing diversified mortgage services for the past 16 years and is now one of the largest privately held mortgage companies in the US.
To know more about how to apply for qualify for the USDA Rural Housing Program, visit, http://www.gateway-funding.com
About Gateway Funding
Gateway Funding Diversified Mortgage Services, LP, established in 1994, is one of the largest privately-held mortgage companies in the United States. Gateway Funding is licensed in most states and has office locations across the country to serve you in your mortgage, home finance, refinance and reverse mortgage requirements. Gateway Funding recognize the challenges their clients and borrowers face today and are determined to find the best possible solution for their customer’s current financial needs.