USDA Rural Development No Down Payment Required in Tennessee

One of the little known benefits of buying real estate in the suburbs, the smaller towns and rural areas outside of  Tennessee,   is that homes in most of these areas qualify for the USDA-Rural Development Zero Down Payment Home Loan   That means that under the guidelines of this government-backed mortgage program, the Tennesssee home buyer  buy a home without having to  make a down payment nor are they required to have a  large monthly private mortgage insurance premium payment.

On a $150,000 home, the savings is two-fold:

(1). First, Tennessee borrowers saves $5,250 compared  to the down payment  required  for a FHA loan  (3.5%)

(2.) Tennessee USDA Rural Development  Mortgage save home  buyers  $115/month in MI (monthly mortgage insurance).  The FHA monthly premium would be $150 while the RD cost only $35

 

These savings make Tennessee RD Home Loan program a great opportunity for first time homebuyers; helping them qualify for more home for less money.

There are however three main requirements for qualifying for the Tennessee Rural Development Loan

(1) The borrower must not exceed the annual household income requirements (example. a family of 1-4 must not exceed a household income greater than $74,050 per year.)  I recommend a  quick phone call to discuss your ‘total household income’ under USDA guidelines.

(2) Second, the borrower must purchase a home in a USDA-RD approved region.  I have provided a link where you can by-pass the map and type in the physical address to get instant verification – CLICK HERE to verify a USDA eligible address.

(3) USDA Credit Score Guidelines. The USDA program is about as “flexible” as any home loan program available today. In some cases, borrowers may even qualify with collections or  a recent bankruptcy.

Many Tennessee home buyers mistakenly believe that days of No Down Payment or Zero Down home loans are gone.  The USDA Rural Development Loan will help many buy a home that thought that dream was out of reach because they did not have the money for the down payment.

If you are interested, I offer all of my clients a Free No Obligation Mortgage Credit Analysis to formulate a clear game-plan for the purchase their new Tennessee home.


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