| There are currently only two ways to get 100% | | | | used to purchase single family owner occupied homes |
| financing for a single family owner occupied home in | | | | in eligible areas and the borrower's income must not |
| the current environment. | | | | exceed the local area moderate income guidelines. |
| The first method is a classic VA home loan that allows | | | | Recently these income guidelines have been increased |
| no money down financing with market interest rates. | | | | to allow more borrowers to qualify for the program. |
| The VA loan requires the borrower to be an eligible | | | | It may surprise you to learn how many towns and |
| veteran and is a great way to obtain 100% financing. | | | | properties around you are eligible for USDA financing. It |
| The down side is that not everyone qualifies for VA | | | | is important that you search for homes with the |
| home loans. | | | | financing in mind to make sure that you are looking for |
| The second method is a source that you might not | | | | homes in eligible areas. The reason you may not have |
| think of when it comes to obtaining 100% financing for | | | | heard much about this loan is because not many loan |
| a home. When most people think of the USDA (U.S. | | | | officers know how this type of loan works so they |
| Department of Agriculture) they do not think of home | | | | ignore it all together. USDA loans are a bit more |
| financing, but rather cattle, farming, etc. I bet you would | | | | complex than the conventional loans they are used to |
| be surprised to learn that the USDA offers one of the | | | | originating. |
| best loan programs available and really the only loan of | | | | It is very important to make sure you find a financing |
| its kind. | | | | professional who understands and knows how the |
| The U.S. Government has appropriated funds to the | | | | USDA loan works. Since automated underwriting is |
| department of agriculture rural development division to | | | | typically not an option as it is on conventional financing, |
| promote growth in rural areas. They guarantee loans | | | | a complete and correct loan package must be |
| so that home buyers can purchase single family | | | | submitted to insure a trouble free and timely closing. It |
| homes and condos in rural areas with no down | | | | is important to use a USDA trained loan officer. For |
| payment. There are restrictions and guidelines for | | | | links to short training videos as well as eligibility tools, |
| USDA financing eligibility. The USDA loan can only be | | | | please see the resource box below. |