Purpose: To provide low and moderate income applicants with the financial assistance to obtain adequate housing in rural communities with USDA Rural Development guaranteeing sound loans that could not otherwise be made without the guarantee.

Eligible Applicants:
Must have an adequate and dependable income
Must have a credit history that indicates a reasonable willingness to meet obligations

Must be a U.S. Citizen or be legally admitted for permanent residence
Must have an adjusted annual family income that does not exceed the moderate income limit of the county

Must have repayment ability based on the

Monthly obligation for mortgage payments, real estate taxes, and Insurance (PITI) divided by gross monthly income cannot exceed 29%.
Total Monthly Debt Payments divided by gross monthly income cannot exceed 41%.

Loan Purposes: Guaranteed loans may be made on new homes that have been inspected using code certified plans and specifications or have ten year warranties. Existing homes that are structurally sound and pass an Existing Home Component Inspection (MO RH Guide 11) may be financed. If the home is on an individual water and sewage disposal system, it must be approved according to the requirements of the Division of Health. Funds may be included in the loan for essential repairs.

Loan Terms: The Lender sets the interest rate for an amount not to exceed the Fannie Mae 30 year fixed rate plus .6 of 1%. The loan may be for up to 100% of market value plus up to 2% for guaranteed fees. USDA Rural Development will receive a one time fee of 2% for purchases and .5% for refinances of Rural Development's loans to guarantee the loan for the original lender. All loans must be secured by a first deed of trust on a residential property.

Location and Loan Amounts: The homes must be located in a rural community with less than 20,000 population, or in open country not closely associated with an urban area. Maps outlining rural areas may be obtained from any USDA Rural Development office located in a county with a city over 20,000 population. The home may include typical amenities, except in-ground swimming pools.

Applications: USDA Rural Development approved conventional lenders originate these loans, process applications and submit the loans to the local USDA Rural Development Office for a commitment.

Call 888-OK-ACCORD for a FREE preapproval.

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