The USDA Rural Housing Loan provides that “Ray of Hope” for many homebuyers, and recent changes make this Zero Down Payment Loan even better.

It turns out that now may be one of the best times ever to purchase a home in Hawaii. At a time when some realtors think that house prices may have bottomed out and may begin to increase again a little-known government insured loan recently received significant changes that now make it so more people will qualify for the loan.

Called by many industry experts as the “best zero down payment loan available” it is more technically known as the Rural Housing Guaranty Loan. It provides 100% financing to qualified buyers with a low 30 year fixed rate. The “RD Loan” (Rural Development Loan), as it is sometimes called is insured by the Department of Agriculture.

Pacific One Mortgage, one of the few mortgage brokers in Hawaii who is considered an expert on the RD Loan has been providing their clients with this loan for over ten years. We work directly with the representative from the Dept. of Agriculture when there are questions on a loan which helps greatly with difficult loans. Plus we place these loans with the largest RD Lender in the United States which allows for excellent rates for our clients and we work directly with the underwriter if we need to.

The Department of Agriculture recently raised the income limits for potential buyers of homes which causes substantially more people to qualify for the loan.

There is no minimum credit score required for the RD Loan. And now with the greater income limits, even more people can qualify for the loan. We see this as a huge benefit for buyers in Hawaii. With low prices right now and the new expanded loan guidelines, this is an excellent time to buy a home. Rates are still great and with no monthly fee for mortgage insurance, the monthly payment for the RD Loan typically offers the lowest payment of any loan available that has little or no down payment. It’s even better than FHA in most cases.

The RD Loan works well on all the Islands including Oahu, Maui, and the Big Island. There are some geographic restrictions to the loan hence the reference to Rural Housing.

To learn more about the loan and to see if the home you are interested in is located in an RD area, you can call me at 479-2427 or my email address is for any questions you have about the RD Loan.