The Section (502) Guarantee Home Loan Program offers many advantages over FHA, VA & Conventional loan programs. Below are the general guidelines:

Ø No Down Payment – 102% Loan w/ a 640+ Credit Score

Ø Mortgage Insurance only .33% = Lower Payment

Ø One Time Funding Fee of 2% of loan amount may be wrapped into the loan = 102% Loan

Ø No limitation to the purchase price or loan amount

Ø May finance up to 100% of the appraised value for closing costs assuming purchase price is less than 100% of appraisal amount

Ø Down Payment Assistance from nonprofit is acceptable  

Ø No limits on “Gifts” and up to 6% seller concessions/seller paid closing costs

Ø Higher income applicants now qualify for the Guaranteed Loan Program-See Chart Below for Income Limits per County  

Ø Loan Types: Purchase or refi 

Ø Property Types: Single family, Townhome and Condominium

Ø Reasonable credit history requirements

Ø Must be employed for 1 year steadily and show that they can afford monthly housing expenses

Ø Declining Market(s) and Lender reluctance not an issue

Ø Loans are assumable

Ø Seconds, such as HELOC's, allowed after time of purchase 

Ø 30 yr fixed loan term with mortgage insurance - One loan - Current Max Rate 4.75%