With 100% USDA Rural Guaranteed Mortgage applicants couldn’t have more than $5,000 left over at closing in the bad old days of the program. This was because the main purpose of the loan was to help people purchase homes in “under” served areas with no money down. Thankfully, this restriction has changed for this USDA no money down program. It is even possible to make a down payment on a USDA loan, although my underwriter has never seen it done in 12 years of underwriting the program.
Now, the determining factor has to do with “IF” the buyer has enough liquid assets to make a 20% down payment and can qualify for a conventional loan. To me, this makes a lot more sense than getting someone into a home and taking all of their cushion away. USDA does not require reserves after closing, but it is nice that there can be some reserves.
Sometimes rules change for the best, instead of for the worst. I think this is one of those times. If you have any questions about qualifying for a USDA Rural Guaranteed Loan, give me a call at 541-342-7576/541-221-3455 Cell or e-mail me.
*This is not an offer to lend. 
Obama Refinance Plan For San Jose Homeowners AnnouncedHome Affordable Refinance Program Update Harp 2 Bay Area San Francisco California March 2012 Guidelines for Purchasing a 3 to 4 Unit Property with FHA Financing in Alameda, CA8 Year Fixed to 30 Year Fixed. You Can Choose Your Loan Term In San Jose
