I posted this article last summer, and use it frequently when providing home buyers with information on one of the few no down payment programs left. USDA is just about out of money for the USDA Guaranteed Rural Housing loan program for 2010, and our local Oregon office has been hopping with the flood of applications. We all have our fingers crossed Congress will reallocate enough money to make this great tool available again, with enough funding to meet the rapidly increasing demand since conventional financing programs and their more restrictive private mortage insurance criteria don't work for many home buyers.

How to Buy a Home In The Rogue Valley Oregon | Using the USDA Guaranteed Rural Housing Loan No Money Down Program

Home in the Country From Alaya Bleu photo courtesy of flickr.comDo you like the idea of living outside the hustle and bustle of the city? Is rural living the lifestyle you choose? There is a great home loan program that is right up your alley, called the USDA Guaranteed Rural Housing Loan Program. This is a government home loan program that may be used for eligible areas with population under 25,000 and away from a metropolitan area. For the Jackson County area of the Rogue Valley, this means eligible areas could be Ashland, Talent, Phoenix, Ruch and Jacksonville to the South of Medford/Central Point, or White City, Eagle Point, Shady Cove, Gold Hill or Prospect to the North. There are eligible areas in Josephine County, outside of Grants Pass, too.

 

USDA Guaranteed Rural Housing 102% Oregon Loan Karen Cooper wwwQuality4LoanscomThe USDA Guaranteed Rural Housing loan program is a 30 year fixed rate loan. Unlike the FHA home loan programs, there is no upfront or ongoing monthly mortgage insurance premiums - just a one-time 2% guarantee fee at closing. Another difference between the USDA Guaranteed Rural Housing loan program and the FHA loan programs is there is no minimum down payment requirement – you may finance up to 100% of the purchase price AND the 2% guarantee fee AND closing costs if the appraised value for the home you are buying supports this.

 

The main highlights of the USDA Guaranteed Rural Housing loan program guidelines are:

 

As of April 20, 2009, the income limits for all non-high cost counties will be:

1-4 Person

 

5-8 Person

73,600

97,150

 

 

 

  • You may borrow up to 102% of the purchase price or appraised value, whichever is less, and may finance closing costs if there is room.

 

  • Seller may contribute up to 6% of the purchase price to cover your closing costs

 

  • If you are buying a home that needs some work, like a foreclosure or short sale, you may finance up to $10,000 in repairs based on the value of the home upon completion of them.

 

If you were thinking you would need thousand of dollars in order to buy your own home, think again. You will need to be prepared to write three checks, though – one for your earnest money deposit (figure maybe $500-1,000), the next for your whole house inspection (figure $350 for this one), and lastly your appraisal fee (figure $450). Both the whole house inspection and appraisal fee can be covered by a closing cost credit, so you very well could end up bringing ZERO money to the closing table if the parties agree. You still need to make sure you have the roughly $1,350-1,850 though, even if it is a gift from a family member.

 

This is a GREAT home loan program! What are you waiting for? The inventory of available homes for sale here in the Rogue Valley is shrinking rapidly in the lower price ranges. Call or e-mail today to get preapproved, or apply online at www.Quality4Loans.com.

 

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

For additional tips on How To Buy A Home In The Rogue Valley, Oregon, follow these links:

How To Buy A Home In The Rogue Valley In Oregon | Using The Neighborhood Stabilization Program

How To Buy A Home In The Rogue Valley, Oregon | If You Are A Self-Employed Borrower

How To Buy a Home In The Rogue Valley, Oregon | Using The FHA Home Loan

How To Buy A Home In The Rogue Valley, Oregon | Using City Of Medford First Time Buyer Program

Karen Cooper Southern Oregon|California Mortgage ConsultantKaren Pierce - Housing Counselor/Certified Foreclosure Intervention & Default Counselor

               NMLS #223305

ACCESS - "Helping People Help Themselves Since 1976"

 
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5 Comments on Waiting on Congress to Reallocate Additional Funding for USDA Home Loan Programs

APR
19
2010
966,826 Points 60 Featured Posts Outside Blog Called Shot Master

Karen:  Unfortunately, the Party of No is much too busy using all of their energy to put roadblocks in front of just about any legislation that comes before them.  The recent long-term hold-up of unemployment compensation is a great example of how they just don't seem to care what happens to those in need.

The fact that they are dragging their feet... and ignoring the needs of people who really need this money... is just more proof that they are truly the Party of No.
12:46am • #1
966,826 Points 60 Featured Posts Outside Blog Called Shot Master

By the way... the Rogue River area is such a gorgeous place.  I was only able to spend a short time there on my drive from Fort Worth to Portland some years ago.  On my way back, I did manage to stop for awhile and enjoy the scenery, and the incredible peace that the area provided.  You are truly fortunate to live in such a wonderful area.
12:49am • #2
1,009,132 Points 13 Featured Posts Localism Sponsor Outside Blog

We are in a smaller more rural community where this loan product has been very helpful.  The timing for this challenge could not come at a worse time especially with the tax credit coming to an end and the deals needing to be negotiated by April 30th, 2010 and closed on or before June 30th, 2010.  I sure hope this is resolved and funded in time for those who are under contract and trying to obtain the tax credit.  
12:50pm • #3
269,220 Points 4 Featured Posts

Karen Anne - There is so much happening right now with legislation, and so much has gone through already over the past 2 years. Some seem to hurry through the system with not nearly enough thought going in to it (HERA 2008 comes to mind!), than the flip side is the lag time and bickering going on bogging down needed funding. It was the peace and the beauty of this area that hooked us on our first visit here. They still hook us, but now it's the people who hold us here, too.

Sam - You sure are right about the timing. Same thing with our recent Neighborhood Stabilization Program that is stalled until HUD clarifies certain issues on the property eligibility guidelines. We need to be full speed ahead for buyers to meet these deadlines, and these delays are very likely going to leave some disappointed buyers.
11:33pm • #5
APR
22
2010

We don't have much use for it up here, but we do have a few communities where I have seen it really used a lot with great success, like North Plains and Banks. Keeping our fingers crossed that they find more money for this great program that keeps these little communities going.
3:46pm • #6

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Karen Pierce

Medford, OR

More about me…

Karen Pierce | Housing Counselor |Oregon

Address: PO Box 4126, NMLS#223305 , Medford, OR, 97501

Office Phone: (541) 779-6691

Email Me

Bringing 29 years of experience providing Southern Oregon and California Home Buyers and Homeowners | Serving all of Jackson County Oregon including Ashland- Talent- Phoenix- Medford-Jacksonville- Ruch- Central Point- White City- Eagle Point- Shady Cove- Gold Hill, as well as Josephine County including Grants Pass- Merlin- Wilderville | Helping Southern Oregonians on the road to fulfilling the American Dream of Homeownership - and staying there!


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