It used to be that if you were applying for a 100% USDA Rural Guaranteed Mortgage, you couldn’t have more than $5,000 left over at closing because the main purpose of the loan was to help people purchase homes in “under” served areas with no money down. That restriction has changed for this USDA no money down program.

Now, the determining factor has to do with “IF” the buyer has enough liquid assets to make a 20% down payment and can qualify for a conventional loan. To me, this makes a lot more sense than getting someone into a home and taking all of their cushion away. USDA does not require reserves after closing, but it is nice that there can be some reserves.

Sometimes rules change for the best, instead of for the worst. I think this is one of those times. If you have any questions about qualifying for a USDA Rural Guaranteed Loan, give me a call at 541-342-7576/541-221-3455 Cell or e-mail me.

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