October 16th, 2008 3:48 PM

The Texas USDA Rural Development home loan program was designed to provide affordable housing for residents in rural areas. In many cases this is the best mortgage for buyers in rural areas. Here are some of the USDA RD program features:

• 100% Financing - No down payment is required
• No cash reserves are required - Many other programs require that you have a certain amount of cash in reserve at closing
• Seller concessions are allowed up to 6% - This means that the seller can pay some or all of your closing costs
• There is no minimum FICO credit score - Clients with no credit history may qualify. (Those with a credit history should have reasonably good credit)
• There is no limit to the purchase price - It must be reasonable for your income
• NOT just for first time buyers
• Very low interest rate
• No PMI insurance - This helps keep your mortgage payment low

Recently the mortgage industry has tightened rules so that even borrowers with stellar credit need a good down payment. The USDA program and the VA program are the two main programs that allow 100% financing.

Here are some of the key requirements to qualify for the Texas USDA mortgage program:

• You must be a US citizen or a legal permanent resident
• The property must be in a qualified rural area
• The property must be for residential use - not a farm of for commercial use
• You need to have enough income for the home you want - generally the payment should not be more than 29% of your gross monthly income
• You must have no credit or a reasonably good credit history
• Your family income should not be more than 115% of the US median income
• The applicant should not already own a suitable home in the commuting are of the proposed property
• Other conditions may apply but you will probably qualify if you meet the above requirements

Tony Cussimanio is a mortgage banker/broker in Austin Texas and can provide you details on USDA, VA & FHA loans. He can be reached by phone at: 512-680-9906 or email at: tonyc@austin.rr.com Visit our Texas mortgage down payment assistance site - Down Payment Assistance Austin This is a great program that many people don't know about! Texas residents can get more information at Texas USDA Rural Development home loan site.

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