Buyers you may qualify for a 100% financing plus seller contribution allowed
You may qualify for a 100% Mortgage and you may not even be aware of it!!
At first a question: Do you think, that 100% financing still exists in 2013? If your answer is “No” you couldn’t be more wrong and may want to keep on reading. We’re not kidding – we are dead serious! There is a way to get a 100% financing deal.
Here are the details: This home loan is only available through USDA “Rural Development’s Singe Family Housing” and is guaranteed through the U.S. Department of Agriculture. “Aha, here comes the catch. Department of Agriculture – I probably need to breed pigs in my spare bedroom or at least I need to grow potatoes in the backyard, right”, you may think, dear reader.
Nope! Don’t worry, you do not need to become a spare-time farmer in order to get a loan like this. However, there is a fly in the ointment as, of course, always: The home must be located in an eligible rural area. Yes – Rural areas do exist in Manatee County, Sarasota County as well as Charlotte County, and they are those areas in the middle of nowhere where even horses are getting bored, right?
Take it easy, dear reader. In this case the definition of “Rural Area” is not necessarily “down in the boondocks.” Some areas are pretty close to the big cities (Bradenton, Sarasota, Venice, North Port). But don’t expect to get a USDA loan in the city limits itself – that is not going to happen.
What else do you need to know? Loan amounts up to 100% of the purchase price. No misprint: 100% of purchase price is correct! Furthermore: No money down – Seller may contribute to closing cost. So? How does that sound to you? Let’s continue: Household Income may not exceed the adjusted income limits for the area. What does that mean? There are certain income restrictions in certain areas. Those limits vary from area to area, however, if your income is in the six digits forget about a USDA loan. Sorry.
What is the purpose of USDA loans anyway? With this type of loans Home-ownership is made available to millions of Families in rural communities and areas just outside of major metropolitan areas. What is wrong about that?