Where’s the Beef?
By
USDA doesn’t just insure the quality of the Beef you buy. They also have what was once a little known product called, USDA Guaranteed Home Loan. These loans are gaining traction.
Why is a USDA Guaranteed Home Loan so Popular?
- There is no down payment required. If the house appraisers higher than the purchase price, then you can even finance the closing costs.
- No mortgage insurance. This is a huge savings, money that you can use to pay down your loan quicker, save, or invest. This savings translates into your ability to afford a larger house if you desire.
- Rates comparable to FHA and Conventional
- 30 Year Fixed rate.
- Potential to included closing costs, repairs into the loan.
- No purchase price limitations
- Relaxed credit guidelines similar to FHA.
Sometimes the seller doesn’t want to or cannot contribute towards closing costs. A USDA Guaranteed Home Loan has a unique feature that allows closing costs and prepaids to be included in the loan, as long as the house appraises for the increased loan amount. This is extremely helpful when attempting to purchase a Short Sell or Bank Owned property.
- No reserves required
Eligible Housing:
- Existing homes
- Condominiums
- Townhouses / PUD’s
- 1/2 of a duplex
- Modular home
- New Construction
Why is the USDA involved in the mortgage process?
The USDA Guaranteed Home Loan program is designed to help low to moderate income families buy homes in eligible rural areas.
Since it’s so great why don’t more people get a USDA Guaranteed Loan?
The USDA is issuing loans, and trying to spread the word. In Fiscal Year 2008 USDA guaranteed 63,933, since their Fiscal year ended in September they are reporting 133,043 guaranteed loans from Fiscal year 2009. Most States do not enjoy the same benefit that Indiana does when it comes to USDA guaranteed home loans. Indiana only has one County in the entire State that is completely ineligible, Marion County, all other counties have at least some eligible areas. The other reason is that until recently there were other programs available for 100% financing.
Okay, so I see it is really is a great program, but do I have to live on a farm?
Absolutely not. In fact working farms are not eligible, and the value of the land can only contribute up to 30% of the total value of the property.
How do I get started?
Apply online at: Lakewood Lending Group and get pre-qualified today.
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