USDA loans are becomeing more usfull in theses times for many reasons.
USDA/Rural Development – this is 100% financing of appraised value. If home appraises higher than purchase price, borrower can finance the closing costs and prepaids. No loan limit. Income limits apply.
One person $49,550
Two people $56,600
Three people $63,700
Four people $70,750
Five people $76,400
Repairs can be escrowed such as new roof, carpet, upgrades. The home simply must appraise out to cover the repairs. There is no PMI required on this product. None monthly. There is a one time Guaranty fee of 2% of the loan amount and is amortized over the life of the loan. Similar to the VA funding fee. And the seller can pay all closing costs, prepaids & escrow reserves without limitation. No homebuyer class required on this with Chase. Other lenders may require it. We are the underwriter and lender on this product. Minimum credit score of 580. Or must have other compensating factors. Borrowers must show ability to repay debt. Can use alternative credit same as FHA. Cell phone, car insurance, etc. No cosigners allowed. Must be primary, single family residence. This is a gov’t insured loan (Dept of Agriculture).
This loan is great for the first time home buyer that does not have much money to put down. Most of marion county is out side the city limit, so USDA loans work in most areas. Buyers can purchase forclosures, short sales or brand new. This loans work for everything. …
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