A rural property
Housing prices are low, and many of you are looking for ways to cash in on these great prices, but lack the huge down payments you are hearing are required.
There are still great loan programs out there to help you.
Are you aware of the USDA rural housing program? Perhaps you should be, because approximately 90% of Oregon falls into the USDA rural housing boundaries. These loans are fantastic, offering 100% financing - even up to 102% financing (to help with those closing costs.) There is no Mortgage insurance requirement, even with 100% financing. Virtually all three of the tri-counties (Multnomah, Clackamas, and Washington)have areas that are eligible, and the further outside the city limits you travel, the more property becomes available. For instance, did you know that if you want to move to the mountains, or the beach, almost all that property qualifies for USDA rural loans. In fact, think closer in, like Estacada, Damascus, Sandy, even parts of Oregon City and Hillsboro- all in the USDA rural zone.
Here are some of the guidelines, because not everyone will qualify for this loan:
1. There are income restrictions. These loans are for low to mid-level income families.
2. There are, of course location restrictions. This IS a rural housing loan program
3. There are caps on the loan amounts.
4. The property being purchased must be your primary home.
5. These loans are for purchase transactions, and rate and term refinances from an existing USDA rural loan only. Even if you live in a rural designated area, if your current loan is not USDA rural, you cannot refinance into this loan.
6. The minimum credit score required is 660 (no exceptions).
Please check here to see if a property you might be interested in, is shown as eligible. You might be pleasantly surprised.
FHA financing allows up to 96.5% financing for purchase transactions. But, did you know that FHA also allows gift funds for all but $500 of the down payment, AND allows up to 6% seller and broker credits for the closing costs?
VA financing still allows up to 100% financing for purchases.
There are income and loan amount limits for both FHA and VA loans.
Please feel free to contact me at any time if you would like more information, or to find out if your property qualifies for one of these great financing options.
http://www.shelbytncmortgage.com
Email: www.shelby.tncmortgage.com
Comments
I can't believe that 100% financing is still being offered to ANYONE under ANY circumstances. We've apparently learning NOTHING about saving and minimizing risk.
I don't believe that 100% financing alone is responsible for the huge numbers of foreclosures. In the Portland area, foreclousres rose, not just in the sub-prime loan area, but also, was the result of excessive overbuilding. There are areas in where builders walked off construction sites leaving homes half built, and leaving the banks with the outstanding loans. All of these foreclosures are included in the foreclosure statistics.
Also, underwriting standards are very much tightened now. Every loan that is closed requires reasonably good credit, income and asset and employment verification. Lending guidelines are closely monitored and closed loan files are audited to prevent fraud.
I don't think anyone should be denied the ability to purchase a house, rather than rent, if they can prove the ability to repay the debt. Still, a borrower may walk away from a mortgage if the value of the house drops too much, regardless of how much money they have in the bank.
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