If you want to live far away from the city, the USDA (United States Department of Agricultural) Rural Development has a loan program where you could put nothing down to buy your house.

The condition is that the house has to be in a rural area.

If you’re thinking that the house has to be 50 miles away from the nearest shopping mall to qualify for a nothing-down USDA RD loan, I’ve got good news.

In the Front Range, the house could be 45 minutes’ drive from Denver and from Boulder and be eligible for a USDA RD loan. According to this map that I downloaded from the USDSA RD’s website, homes in cities such as Firestone, Dacono, Frederick, and Erie are eligible (non-shaded).

Other lending guidelines apply, of course. A friend of mine calls it “a VA (Veterans’ Affairs) loan, except you have to live in the sticks.”

So what’s new? Why, lower fees associated with this program!

…the USDA said that it plans to cut the fees it charges lenders both its upfront guarantee fee and its annual fee beginning on Oct. 1, 2016, the first day of fiscal year 2017.

According to the announcement, the USDA is set to cut its upfront guarantee fee from 2.75% of the loan-at-close amount to 1%. Additionally, the USDA is cutting its annual fee from reduced from 0.45% of the unpaid principal loan balance to 0.35%.

While these are the fees that the USDA charges lenders, these fees are often passed onto the borrowers, meaning borrowers could see loan savings beginning very soon.

So, what’s the reason for the cut? Better borrower performance, according to a USDA official.

According to the official, the USDA is able to cuts its the upfront and annual fees because borrower delinquency and foreclosure rates have reached “historic lows” since the beginning of the housing crisis.

Learn more about the USDA’s RD loan program at their website.

If you would like to buy a house far away from the city, or any house anywhere for that matter, contact me today!

Questions about rates today, or about your specific situation regarding mortgage approval? Contact me today!

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