In December I personally closed on four USDA purchases here in the Sequim and Port Angeles Area.

What makes the USDA loan so attractive to homebuyers?

1. This loan requires no down payment. Some may say that homeowners need to have a little skin in the game and don’t like Zero down loans. While I do agree with this point my experience is that for many people in our area 5-10% down payment is sometimes out of reach for them; especially folks starting out or going through major life changes.

2. Compared to the FHA mortgage, USDA loans do not require Mortgage Insurance. On a $200,000 purchase price that saves you $91/month on your mortgage payment.

3. Closing costs can be seller paid or if the home appraises for more than the purchase price they can be added onto the loan and financed.

4. USDA loans also allow you to finance up to $10,000 in repairs to the home. Maybe you can only afford a $150,000 home and everything in your price range requires some kind of work.

5. Lastly, strict income and debt to income requirements. USDA loans are made to help homebuyers succeed and become long term homeowners. Careful attention is giving to your payments and the amount you qualify for so as to make sure you are not getting in over your head.

Buying a home with USDA financing is one of the best ways to purchase a home and get the lowest monthly payment. This is a true ZERO down no money out of pocket loan. Many of our residents who were priced out of the market two years ago are finding homes more affordable. Buying a home right now with historically low interest rates, lower home values, and a great loan is the beginning of solid financial future.

I hope this helps. If you have any questions or desire further information about USDA loans please email arthur@sequimhomeloans.com