 The USDA (United States Department of Agriculture) offers a barely known 100% loan financing program, called the USDA loan, that can help lower income families purchase homes. With funding up to 100% of the homes purchase price, payments on this mortgage are based on the household's adjusted gross income. Commonly called Section 502 loans, this rural housing development government loan program offers some advantages to those who are unable to obtain conventional financing.
A few advantages of this program include:
• No down payment with 100% financing
• No maximum purchase price
• The home-buyer's closings costs may come from any source, including gift money
• Home improvement and repair monies can be included in the loan
• 30 year fixed rate loans
• No minimum credit score
• Mobile homes on land can be eligible Normally, the home purchased will need to be in a rural area with modest prices for the area. The homebuyer's income typically will also need to be below the median income for the area. Take a look at the USDA links below... they will allow you to search for eligible properties by address. You can also find the maximum income allowed based on geography and family size. You will be amazed at how many properties can qualify for this government loan program that are located just minutes from town. Some of the more developed locations like New Tampa, Fishhawk and Riverview suprised me that they too qualified for this type of loan! Click here for USDA Loan Application or call (800)975-7205 for more info.
|