Posts Tagged ‘100% Financing’

USDA Guaranteed no money down loans are alive and doing well in rural Oregon. The program has been re-funded by Congress and is proceeding as it should be. USDA is one of only two 100% financing loans available. Read More

The USDA Loan program is a specialized home financing option offered by the U.S. Department of Agriculture that is one of only two no down payment loan programs available. The program is designed for people who are planning to buy a home in a rural area. (This doesn’t mean farm.) Under the USDA program, home-buyers are eligible to borrow up to 100% of the purchase price of a property so long as the property being financed is situated in a designated rural area.

The loans themselves are not originated directly by the USDA but rather by banks and credit unions that meet specific USDA criteria for participating in the program. An individual seeking an USDA loan will need to find participating financial institutions in their area to apply for the loan. (Alpine Mortgage Planning is such a financial institution.) 

Benefits

USDA loans offer multiple advantages to people purchasing property in rural areas. Most conventional home loans for instance, require individuals to bring anywhere from 3% to 10% of their own money to the table when buying a house. Under the USDA program, individual are not required to make any down payment and can get financing for the full purchase price. Read More

USDA announced the official change in program guidelines for the 100% USDA Rural Guaranteed Home Loans officially raising the up front fee to 3.5% Read More

I cannot find this in any news reports or on the USDA website, but since we are told by underwriting that this is so, it is. Any new submissions for a USDA Guaranteed Rural Home Loan must be manually underwritten and have a 3.5% guarantee fee instead of the 2% guarantee fee currently (until today) in place. Read More

As I reported last month, USDA said they would be out of funding for the Rural Guaranteed Home Loan Program, probably in April. Monday, the House Financial Services Committed voted unanimously to send the Rural Housing Preservation and Stabilization Act of 2010 to the full House for vote. This could mean that no money down rural loans will be available for the areas outside of Eugene/Springfield with no break in the home purchase program. Read More