FirstBank FTHBPacket FinalNoBleeds - Page 17



6
USDA MORTGAGE LOANS
USDA loans are backed through the Rural Housing
Division of the U.S. Dept. of Agriculture. They are
available to millions of eligible primary home buyers
with low to moderate incomes or scarce funds for
down payments.
No down payment is required for USDA loans.
Thirty-year, fixed-rate loans with no pre-payment
penalty are the norm, and rates are very competitive
with conventional loans.
These loans are limited to “rural” areas, though you
might be surprised by some of the suburbs of major
metropolitan areas that qualify by that definition.
Homes should be modest in size and cost and
7
constructed per local codes and regulations.
Minimum cash is required to close with a USDA loan.
The USDA Guarantee Fee and eligible closing costs
may be financed. Gift money, grant money and seller
contributions are allowed.
Funds are available for qualified borrowers who
earn up to 115% of the area median income. Even
candidates who have had past credit issues with late
pays, bankruptcies or foreclosures may be eligible.
Borrower’s income must support the proposed
payments and meet the program requirements
for approval. Primary occupancy is required. This
program is not for investment properties.
VA MORTGAGE LOANS
Veteran’s Administration or “VA” loans are available
for active, non-active and retired Army, Air Force,
Marine, Navy, National Guard and Coast Guard vets
who meet the established service requirements.
These loans have flexible guidelines and other
features not available with other loan programs.
To determine your ability to participate in this
program, just provide your Certificate of Eligibility
(COE) or your Discharge/Separation form (DD214).
If you do not have your COE, you can request one
using form 26-1880.
The most notable features and benefits for those
who qualify are:
• 100% financing/No down payment
• No monthly mortgage insurance (PMI)
• Gift funds acceptable for closing costs
• No cash reserve requirements
• A variety of terms or loan types available
• Available for purchase and refinance




Reduced costs for disabled veterans
Seller can pay for closing costs
Seller pays for any required repairs
No pre-payment penalty





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