Southern New Hampshire Life

Southern New Hampshire Blog by Steve Russo, Realtor


Southern New Hampshire Life - Southern New Hampshire Blog by Steve Russo, Realtor

USDA Mortgages

$0 DOWN, LOW INTEREST MORTGAGES

Just about everyone has heard about Fannie Mae, Freddie Mac, and VA mortgages.  There is another federal government backed mortgage program that is little known but compares very favorably with these more popular ones.  That’s the USDA Rural Development Mortgage Program.

Don’t be put off by the “Rural” in its name.  USDA mortgages can be used to purchase homes in most towns in New Hampshire and central and western Massachusetts!  In general, only properties in urban areas – larger cities and larger towns – are not eligible.  In southern New Hampshire, for example, only Derry, Hudson, Keene, Londonderry, Manchester, Merrimack, Nashua, Portsmouth, Salem, and parts of Goffstown and Hooksett are ruled out.  In Massachusetts, most communities west of Lowell and Concord and north of Worcester are eligible, except Fitchburg and Leominster.20140920_141707

Why are USDA mortgage loans attractive?  They require no money down, have low interest rates, and don’t require mortgage insurance.  Rural Housing loans are aimed at families with moderate or low incomes looking to buy (or refinance) a primary residence.  The USDA will not lend to people with incomes over a certain amount, which can be as high as $ 104,000 for a family of four in certain areas of New Hampshire and Massachusetts.  For information on income limitations, see the income tables on the USDA RD website.

For more information on which communities are eligible, click here Previously, the USDA had announced that it would be deleting some towns from its program, but they have since reconsidered; there will be no changes in the eligible towns for the next few years. 35 Dupaw Gould

All mortgage programs are complex.  For an overview of the USDA Rural Development mortgage program, consult your banker or financial adviser.  Please note that not all mortgage lenders offer this program, but there are many in every state that do.  If you need assistance in finding a lender that offers USDA mortgages, please give me a call.

The USDA Mortgage Loan Program

Just about everyone has heard about Fannie Mae, Freddie Mac, and VA mortgages.  There is another federal government backed mortgage program that is little known but compares very favorably with these more popular ones.  That’s the USDA Rural Development Mortgage Program.

Don’t be put off by the “Rural” in its name.  USDA mortgages can be used to purchase homes in most towns in New Hampshire and central and western Massachusetts!  In general, only properties in urban areas – larger cities and larger towns – are not eligible.  In southern New Hampshire, for example, only Derry, Hudson, Keene, Londonderry, Manchester, Merrimack, Nashua, Portsmouth, Salem, and parts of Goffstown and Hooksett are ruled out.

Why are USDA mortgage loans attractive?  They require no money down, have low interest rates, and don’t require mortgage insurance.  Rural Housing loans are aimed at families with moderate or low incomes looking to buy (or refinance) a primary residence.  The USDA will not lend to people with incomes over a certain amount, which can be as high as $ 103,000 for a family of four in certain areas of New Hampshire.  For information on income limitations, see the income tables on the USDA RD website.

For more information on which communities are eligible, click here.  Previously, the USDA had announced that it would be deleting some towns from its program, but they have since reconsidered; there will be no changes in the eligible towns for the next few years.  Maps of the eligible and ineligible towns are available here.

All mortgage programs are complex.  For an overview of the USDA Rural Development mortgage program, consult your banker or financial adviser.  Please note that not all mortgage lenders offer this program, but there are many in every state that do.  If you need assistance in finding a lender that offers USDA mortgages, please give me a call.

Call (cell: 603-321-9895; direct office: 603-459-1103; general office 603-888-4600) or email steve.russo@verani.com.

Steve Russo

– Steve Russo, Connecting People with Homes in Southern New Hampshire and North Central Massachusetts.

Website: http://www.SteveRusso4Homes.com

Facebook page: Steve Russo, Realtor

New Hampshire Housing Finance Authority

The NH Housing Finance Authority is a great resource for residents who are considering the purchase of a home, especially first-time home buyers.  The organization was established 30 years ago by the state “to promote, finance and support affordable housing opportunities and related services for New Hampshire families and individuals…” It is not a state agency and receives no public funds.   The NHHFA’s website outlines their programs.

The agency offers fixed rate mortgages to low- and moderate-income home buyers (families with an income of less than 77,000 to 93,000, depending on the community);  it provides rental assistance to low-income families and individuals;  it assists homeowners going through financial difficulties; and it finances the development of quality, affordable rental housing in New Hampshire.

The Authority’s mortgage rates are very competitive, and they work with banks and other mortgage lenders.  Their mortgage loans require little or no down payment.  They also offer home rehabilitation loans of up to $ 40,000. A list of institutions offering their loans is available by clicking here.

The NHHFA sponsors seminars to help would-be home buyers learn about mortgages, using a real estate agent, how to get pre-approved, and if home ownership is right for them. They also offer several booklets with valuable information for people considering buying a home; see their publications webpage.

Only a small percentage of NH Realtors have been specially trained in the many programs available from the NHHFA.  I am one of them, so if you’re interested in their programs, please don’t hesitate to give me a call! You may call me at 603-321-9895 or email me at steve.russo@verani.com.  Or click here to go to my website.