The Guaranteed Rural Housing program is a great way for first time home buyers and those with blemished credit to purchase homes with no money required for down payment or closing costs.

Unlike traditional loan programs, the Guaranteed Rural Housing program allows the borrower to obtain a loan equal to the appraised value as opposed to the sales price of the home. If the appraised value is greater than the sales price, the increased loan amount can cover costs such as closing costs, home repairs, or other monies previously paid by the buyer.

This loan program also boasts the lack of costly private mortgage insurance. Instead, every borrower under this program contributes a one time funding fee which can be financed on top of the sales price of the home. In addition, this loan program is not credit score driven. Someone with past credit problems or no credit history can obtain this loan with little effort or no effort on their part.

 

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