Rural Development

RD (Rural Development Loan)

– Not limited to first time home buyers but you cannot own any other real estate

–Income limits and geographical limitations apply

– No Sales Price or Loan Limits to worry about

– No down payment is required

–Seller can pay all closing costs and prepaid expenses associated with a purchase but this needs to be negotiated into the contract and is limited to the lesser of actual expenses or 6% (whichever is less).

– Minimum of 620 credit score required by Merrimack Mortgage Company for RD loans

– Available for 1- unit  (single family) properties and FHA approved condos

– In law apartments not allowed

–can be combined with NH Housing

–Minor rehab funds may be available (up to $8000) on a case by case basis without getting into a rehab loan (ask us for details on this)

–Up to $40,000 in rehab funds available if combined with NH Housing’s rehab program

–Take a look at the RD Info Sheet for more details

– 2% upfront fee (mortgage insurance) and monthly fee (loan amount X .30% / 12)