Rapid City

Rural Development loans (www.rurdev.usda.gov/sd) may help some people with lower or moderate income levels obtain mortgages with 100% financing. These are designed to help people with good credit and steady incomes that may not have the down payments funds saved for conventional financing.

This government backed loan guarantee looks at credit history, ability to pay, and debt-to-income ratios. For a rule of thumb to see the amount a buyer may qualify for, the mortgage payment (principle, interest, taxes and insurance or PITI) divided by gross monthly income, needs to be equal or less than 29%. Buyers also need to have their total debt divided by their gross monthly income be less than 41%.

This program can be combined with SD Housing loan programs available to first time home buyers. For homes which close before December 1, 2009, there may also be a tax credit of up to $8000 for first time home buyers.

This program is available for homes outside of towns with over 20,000 people. Locally, this can include homes outside of Rapid City; close to Rapid City each address needs to be checked individually.

If you would like more details, please contact me at caroll@PropertyByReferral.com .