Actually based on the government's maps, most of Cape May County is considered rural and you would be surprised to know that the income guidelines to be considered a moderate income household is from $91,550 for a single person to $120,850 for a household of 4 or more. With incomes at these levels you would still receive a guaranteed USDA Loan from a private mortgage company. Combine that with the maximum loan limit of $233,100 and there are plenty of properties in Cape May County, and even a couple in Cape May itself that you would be able to get this government subsidized program for, . Even if you are not looking to purchase in the Cape May Area, this program is Countrywide, so you might qualify in your own home town.
So why would I want to use this program? Well, because the program has several very attractive benefits:
- 100% financing, no down payment is required. The loan amount may not exceed 100% of the appraised value, plus the guarantee fee may be included.
- Guarantee Fee applies: may be rolled into the loan amount.
- Flexible credit guidelines. Non-traditional credit histories may be accepted.
- Fixed 30 year interest rates apply. Lenders and applicants agree upon interest rate.
- Qualifying ratios are 29% for housing costs and 41% for total debt. Lenders may request an exception to exceed these ratios when strong compensating factors are identified.
- No maximum purchase price. Qualifying ratios and the applicant’s stable and dependable income will determine home affordability.
- Eligible property types include existing homes, new construction, modular homes, Planned Unit Developments (PUD’s), eligible condominiums and new manufactured homes.
- Eligible closing costs and lender fees may be included in the loan or paid by the applicant.
- Gift/Grant Funds/Mortgage Credit Certificates (MCC’s)/Seller Concessions are allowed.
- Eligible repairs and improvements may be included in the loan.
- Applicants apply with an approved lender of their choice.
- Not limited to first time home buyers.
So now that you are interested in learning more and how this program may help you, contact your trusted mortgage lender to see what else is needed and if you qualify. If you don't have a mortgage professional to talk to about this program, don't worry I have several that can help.