usda 502 direct loan from the goverment?
who gives out usda502 direct loans a lender or goverment
- richard tLv 59 years agoFavorite Answer
Quote from their website: "Rural Housing Direct Loans are loans that are directly funded by the Government. These loans are available for low and very low-income households to obtain homeownership. Applicants may obtain 100% financing to purchase an existing dwelling, purchase a site and construct a dwelling, or purchase a newly constructed dwelling in communities outside of metropolitan areas. The purpose of this loan is to provide financing at reasonable rates and terms with no down payment. Mortgage payments are based on the household's adjusted income. These loans are commonly referred to as Section 502 Direct Loans. Application is made at the USDA Rural Development office serving the county in which the home you plan to buy is located."
To qualify you need to purchase in one of these rurally designated areas. Normally, that means a town that has less than 25,000 people.Source(s): http://www.rurdev.usda.gov/ia/rhs502.html
- grymesLv 43 years ago
see u are new to this. u on no account touch or see the money - straight forward. if u approved for 100K and the living house sells for 85K then they the loan company get the money and u get the living house and funds. technically matter no longer a component. what's paid is truthfully expenditures, no longer something extra.
- loreeLv 43 years ago
I was curious about this as well