No Money Down OR – WA – CA

A No Money Down USDA Rural Guaranteed Loan in Lane County may be easier to get than you might think.  The USDA program was established to help finance homes in rural areas of the United States that appeared to be underserved by lenders. The recent change in income limits for USDA loans for Lane County make a larger percentage of potential home buyers eligible for this method of home financing.

 Here are some of the highlights of the program.

1. Loans may be for up to 100 percent of appraised value or the acquisition cost plus closing or development costs (see #6), whichever is less. The appraised value may be exceeded by any portion of the one time guarantee fee financed resulting in a LTV of up to 102%.
2. No down payment is required.
3. No PMI (private mortgage insurance).
4. Unrestricted gifts. No seasoning, no gift letter.
5. Mortgages are 30 year fixed rate term.
6. Loans may include funds for closing costs, guarantee fee, legal fees, title services, cost of establishing an escrow account and other prepaid items, up to appraised value; May eliminate need to re-negotiate contract to increase seller’s contribution.
7. No Seller contribution limit.
8. No cash reserve requirements.
9. Applicant can have and retain liquid assets of up to 20% of purchase price and still be eligible (cannot qualify for conventional 20% down-payment loan).
10.  Homes must be located in rural areas. Rural areas include open country and places with a population of 10,000 or less and under certain conditions towns and cities with between 10,000 and 25,000 residents. Urban fringes contain eligible areas in most cases. For an instant determination of property location eligibility, go to http://eligibility.sc.egov.usda.gov/eligibity. Click on “single family” under “Property Eligibility” and type in the address. If the address is not found, go to the map. Select the state and county and zoom in on the area of the property. The lighter shaded area is eligible. Most counties are fully eligible. Nearly all of Lane County located outside of Eugene and Springfield is eligible.
11.  The purchaser does not have to be a first time home buyer and as long as you do not own a dwelling in the local commuting area, (Example: Individual or family has been transferred or found employment in a different state, or outside of a reasonable commuting distance) OR you own a dwelling which is not structurally sound or functionally adequate, (Example: Home has documented structure, safety, or sanitation issues), you could qualify for a USDA Rural Guaranteed Mortgage Loan. There are credit and debt ratio qualification in this situation.

Call me today to get pre-qualified for a USDA Rural Guaranteed Mortgage Loan. It is always better to get your loan in order before you start looking for a home. I can also recommend one of my trusted Real Estate partners to help you in that search. Rates are unusually low and home prices may be near the bottom. Don’t be left sitting on the fence. You can reach me at (541) 342-7576 or (541) 221-3455, or e-mail at eugeneloanguy@gmail.com. Let’s work together to get you in your dream home.