Q: How much cash would I need in order to purchase a home?
A: Technically you would not need any money. The RD loan is 100% financing so there is no down payment and the seller can pay all closing costs.

Q: Do I have to have perfect credit?
A: No. The minimum credit score is only 620. If your score is currently below 620 we can offer credit counseling to assist you in getting your credit score up to 620.

Q: Does the RD 100% financing loan have a monthly PMI payment like FHA?
A: No. There is no monthly PMI included in your payment. On a $200,000 loan amount this would save you about $91 per month over a similar FHA loan.

Q: Is there a limit to the amount that I can borrow for a home on the RD program?
A: There is no limit to the home price. You are simply limited to the amount that your income will qualify you for.

Q: What are the income limits for the RD program?
A: The income limits are set by county. the limits for Dare and Currituck counties are:
Dare family of 1-4 people $73,600
Dare family of 5-8 people $97,150

Currituck family of 1-4 people $78,500
Currituck family of 5-8 people $103,050

Q: How do I know what payment I can qualify for?
A: the maximum house payment that you can qualify for would equal 29% of your gross income. Your total payments including the house payment and all other payments such as automobiles and credit cards cannot exceed 41% of your gross income. ( gross income is your income before any taxes or other deductions)

Q: I have heard that closing costs can run into the thousands of dollars. will I have to have a lot of cash for closing costs?
A: No. The RD loan programs allows the seller to pay all closing costs for the buyer.

Q: Is the RD loan program only for single family homes?
A: No. You may also get 100% financing on townhomes and condominiums.

Leif is available to answer any additional questions you may have about current loans and financing options. Feel free to drop a comment or email Leif at lrasmussen@metlife.com for further information.