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See RD502...

Requirements

Underwriting Guidelines

Sample Photos





USDA/Rural Development 502 Program (RD502)

CDCB partners with the United States Department of Agriculture to provide a 33 year, 1% to Market, interest rate mortgage loan.

Details:

Target Market
Families interested in purchasing a new home in rural Cameron County area earning under 80% of the AMFI.
Owner Equity
3%
Mortgage Financing:
1% - Market, 33 year loan to homeowner.
Private Sector Financing:
100% of loan amount.
Public Sector Financing:
Up to $10,000 when available from CDCB for Downpayment & Closing Costs. For qualified participants (80% or below of AMFI).
Average Sales Price/
Mortgage Loan Amount:
$60,000 for purchases of CDCB Subdivisions homes.
Mortgage Qualifying Ratios:
29/41


Requirements for the RD502 Program:
  1. Building a home in a colonia area;
  2. Minimum of $900 gross monthly income;
  3. Consistent work history or steady income from other sources;
  4. Reasonable credit status;
  5. Completion of Home Buyers Education classes
RD502 Underwriting Guidelines:

Underwriting Items
RD502 Loan Program
Max. LTV/CLTV
100% (may include all closing costs)
Max Loan Amount
RD Max per area
Loan Terms
33 years
Interest Rate
1% - Market per RD’s income eligibility
Purchase/Refinance
Purchase Only
Owner of Lot
No
Lot Equity
N/A
Properties
Single family residence
Occupancy
Owner Occupied
Down Payment
None
DAP Assistance
Qualified Borrowers
Qualifying Ratios
29/41 expandable to 33/41
Credit
RD Guidelines
MI Coverage or Guarantee Fee
None
Homebuyer Training
Required
Cash Reserves
None
Geographic Restrictions
Rural Areas designated by RD
Income Limits
115% HUD Median of total household income
Non-Perm Residents/Aliens
No
Limit on Seller Contribution
None
Origination Fee
None
Forms Required
Conventional
Temporary BuyDowns
No
1st Time Homebuyers
No
Closing Costs
Standard & Customary
Gift Grant OK

RD502 Sample Photos (Subdivisions):


RD502 Sample Photos (Self Help):