Rural Mortgage Program TEST
BND will purchase long term fixed rate conventional home loans for rural residential properties from an approved originating lender in instances where the appraisal may not meet standard secondary market requirements.
- Home must be an owner occupied primary residence
- The home must be located in North Dakota in an area defined as rural by USDA Rural Development.
- Property must be residential with no more than 40 acres, preferably 10 acres or less
- No significant income can be earned from the property
Purchase and rate/term refinancing
The maximum allowable loan limit is $400,000.
Maximum Loan to Value (LTV): 80%
Combined Loan to Value (CLTV): 95% if subordinate financing supplied by originating lender
Fannie Mae credit standards must be met. Additional credit criteria will apply for loans between $350,000 – $400,000.
First mortgage on subject property
Uniform Residential Appraisal Report (Fannie Mae form 1004) must be completed by an approved, licensed appraiser.