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100% Mortgage Financing

LRG Mortgage is proud to be one of a relatively limited number of lenders offering the only no-down mortgage program available today. This program is the USDA Rural Development Guaranteed Housing Loan Program.

For a brief span of a few years, it was relatively easy for home buyers to get in with zero down payment. Since late 2007 nearly all sources of 100% financing have dried up. The only program remaining which permits no down payment is the USDA program.

What is the USDA Home Loan Program?

The U.S. Department of Agriculture offers the "Guaranteed Rural Housing Loan Program." It is a loan guarantee program that, like the FHA and VA loan programs, provides insurance to lenders, protecting them against loss in the event that the home owner defaults on their loan.

This loan program is for homes located in eligible rural areas, typically any town with a population of 25,000 or less that is not adjacent to a large metropolitan area. Contact us if you want to check to see if a particular property or area is considered eligible.

No down payment is required. Instead, buyers pay a one-time insurance premium (which may be paid by the seller or financed as part of the loan amount). The premium amount is 2% of the purchase price. There is no recurring insurance premium.

You do not have to be a first-time home buyer to be eligible.

There is no specific limit on loan amounts or home sale prices.

Loans are structured as 30 year, fixed-rate loans. Rates are comparable to those on conventional loans. The interest rate may be "bought down" for the first year or the first two years in exchange for an extra payment up front. This extra payment can be contributed by the seller.

For more information on the USDA mortgage program click here.