More about the USDA loan program.

 I briefly mentioned this program in my last blog. I thought I could address a few more details for those of you who may be looking at homes in a rural area or know someone that really wants to get into a home but doesn’t have a down payment.

What:
 The United States Department of Agriculture (USDA) has a loan program targeted for rural communities. Yes, I know that they stamp the approval on the beef that we eat, but they also govern several non-food related sectors. The program is similar to other mortgages offered by Landmark Mortgage. Much like an FHA loan, USDA does not service the loan. The government entity provides a security or guarantee to the bank. If the borrower were to default then USDA will step in and fund the loss to the bank.
Who:
The USDA rural development home loan program is available for those who are looking to purchase a primary residence and do not own any other properties. It is a great option for a first time home buyer. To qualify for the loan the borrower’s income must fall below the maximum income limit based on the size of your family and county in which the property is located.
Where:
In the Willamette Valley there are several great opportunities for this program. With “rural development” being the key term in this program, it is important to know that most Salem, Keizer, and Albany homes will not qualify as being located in rural communities. However, most towns surrounding these areas qualify. USDA states that most towns with a population less than 25,000 should qualify. To check if a specific address is eligible for this loan visit the USDA property eligibility website.
Why:
Because other than the government guaranteed VA (veterans) loan, USDA is the only other option for 100% financing.

For specific details about this program or to see if you qualify please feel free to contact me at karen@landmarkmortgage.com.

 

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