There seems to be some confusion going around about the Rural Development (“RD”) program in Missoula, MT, and whether or not there is funding available, so I thought I would try to help clear some of it up.
There are two types of rural development loan programs: (1) RD Direct; and (2) RD Guarantee. RD Direct is the program that is currently short on funds, pending legislation.
1. Rd Direct: You can only receive this type of loan by going directly through the Rural Development
office. This program can offer assistance with mortgage payments, for parties that income qualify. As I mentioned above, this is the program that, currently, does not have available funds. This, however, could change at any time. The Rural Development Direct program is still accepting applications, but they cannot guarantee any dates for funding.
2. RD Guarantee: This type of loan is offered through many lenders. I recently spoke to a lender who is very experienced with doing these loans – Bryon Smith with Bryon Smith Mortgage, LLC – to get up-to-the-date information on the RD Guarantee program:
The big difference between this program and the RD Direct program is that the RD Guarantee program cannot offer any assistance in mortgage payments. However, the basics for this loan are as follows:
– 100% loan
– Allows Seller-paid closing costs
– Today’s rate is around 4.75%
– Income qualifications, and must qualify for the payment
– Property must qualify (the property must be located within the qualified area for rural development
loans and must meet certain condition requirements).
The current income qualification for a family of 1-4 is $73,600; and for a family of 5-8 is $97,150. You can check to see if a property qualified for rural development financing here for single family or multi-family.
If you, or someone you know, could benefit from this type of loan, please contact me! We would love to have the chance to help find out if this could work for you. If you would like to speak to a knowledgeable Missoula lender regarding your specific circumstances, Bryon Smith, with Bryon Smith Mortgage, LLC, is a great contact. Bryon can be reached at: (406) 541-8100; or e-mailed at: bsmith@blackfoot.net.