1% Interest Rate

Good information from Brenda DeArmond

Yes, you heard it right. You could be getting a very low interest rate if the situation is right. This is called the USDA Rural Housing Mortgage Direct Loan. This is a mortgage program that gives 100% financing, including, if necessary, the funding fee, closing costs, and prepaids. If the house you are interested qualifies as a rural area, and you make under a certain amount, you could qualify for one of these loans.

In order to qualify for the Direct Loan, you would have to go directly to the provider rather than a mortgage broker. This is a Government loan. The name of the loan is Section 502 Direct Loans. You must be considered low income. If you are between 50% and 80% of the area median income, you would be considered low income. If you are below 50% of the area median, you are considered very low income.

These loans are for up to 33 years or even 38 years for those with incomes below the 60% mark and can't afford a 33-year loan. The interest rate is based on what it cost the Government and is modified by payment assistance subsidies.

You may not get a 1% interest rate but would you pay 3%?

As we progress through this credit crisis, you are going to see more and more of new mortgage plans develop. Stand by.

Call me at 1-800-504-6066 for more updated information.