I'm getting more and more calls from clients and friends who think that the new lending guidelines require at least a 20% down payment.

While having that much cash to put down would certainly lower your payment, there are plenty of low down payment options available right now.

One very little known program is the Gauranteed Rural Housing Loan Program administered by the USDA – yep, the same people that certify your beef!

Following are some general highlights:

• No down paymen, 100% financing
• No monthly mortgage insurance
• Do NOT need to be a first time home buyer
• Seller can pay all closing costs (if negotiated properly!)

The program is restricted to “rural” areas but that includes a large portion of our readers’ locations – ALL of Ferry, Pend Oreille, and Lincoln Counties are eligible as is most of Stevens County (the community of Suncrest is excluded), and the outlying portions of Spokane County. While I have only listed a few areas covered, we can help you with a USDA Rural Housing Loan Program in any eligible location in the states of WA, ID, and CA.  We have reference maps to verify the eligibility of specific addresses and you are welcome to call us to check for you.

There is also an income limit of 115% of area median income limit, scaled to family size. The income limit is actually quite high, particularly when there are three or more family members residing in the home.

If you are a real estate agent or a prospective home buyer, and would like to know how this program could help you purchase a home just give us a call. We’d be happy to fill in the details.

If you have a question about lending or real estate, please send me an email at MMullin@TheLoanConsultant.com, or give us a call at 509-252-9151. I’d love to share my knowledge with you!