Purchase Your Clark County Home with No Cash Down Financing, Backed by the US Government
An always popular reason for people wanting to move to Clark County has been the opportunity to either live in one of the several fine small towns near Vancouver or, own a home on acreage in the country, and perhaps slow down just a little bit. A lesser known fact that there still are livliehoods taking place with work and jobs available in the rural parts of the County. To make purchasing a home in a rural town or, a rural property more feasible, the US government as a part of the mission of the Department of Agriculture (USDA) offers the USDA Rural Development Single Family Guaranteed Loan Program.
Background: America's Rural areas have a long history of quality programs available from the US Government to promote and improve the quality of life and affordability to live in a rural area. The Rural Electirification Administration (now the Rural Utilities Service - RUS) and Rural Housing Administration (RHA) were spawned from the New Deal programs from the Great Depression and Dust Bowl days, and provided financial assistance to rural areas for housing and to deploy electrical distribution and telephone infrastructure to rural communities. To be sure, a big driving force behind these programs is to better ensure the health of US Agricultural areas and the primary food supplies for our nation. The government department handling these programs is appropriately enough, the US Department of Agriculture (USDA). The USDA Rural Development Home Loan has been around about the same length of time, and has evolved over time to its current modern form.
How Does the USDA Home Loan Work in Clark County?
Here are some of the Key Financial Elements of the USDA Home Loan:
- Home must be in an eligible area.
- Zero Cash required for the Down Payment. Even some or all of the Buyer's Closing Costs may be financed if eligible.
- Low to Middle-Income Households are generally eligible - If the Household Income is too high, you may be ineligible.
- 30 Year Fixed Term Loans at Today's Low Interest Rates -- these are fully amortized loans with no gimmicks.
- Qualifying rations are 29% for Housing and 41% for total debt.
- Guarantee Fee applies, and may be rolled into the loan.
- Flexible Credit Guidelines, where non-traditional histories may be accepted.
- Eligible properties include: Existing Homes, New Construction, New Manufactured Homes, Modular Homes, and eligible Condos!
- Eligible Repairs may be included in the loan as well!
- Applicants apply with an approved lender of their choice (we know several good approved lenders).
Where in Clark County Can We Purhase Using the USDA Home Loan?
With Clark County being a part of the Greater Portland / Vancouver metro
area, the USDA has provided a map of the Ineligible southern part of the County
which means, the remaining northern part of the County is eligible. Here
is the map courtesy of the USDA (click on the map for a larger version):
From this map we know these areas should qualify:
All of Amboy, La Center and Yacolt;
The Clark County Portion of the Woodland zip code;
Ridgefield north of 179th Street;
Battle Ground except for the portion south of Meadow Glade and west of SR-503:
most of Brush Prairie and Hockinson;
Camas and Washougal north of Blair Road and the Washougal River Road.
Are There Any Other Important Elements to This Loan Program?
Here are a few more items to check off before looking into this loan or at a particular property:
- Must be Owner Occupied as the Primary Residence;
- 30 year fixed rate of interest with no down-payment required (repeat from above);
- Home must be structurally sound and in reasonably good repair.
- Home must not be used to produce Income, nor can there be Income Producing Buildings or other Accessories that produce Income on the property;
- Probably won't be a Mansion or Castle.
Thus, this loan cannot be used for a Rental Property or, be a major fixer. Otherwise, a relatively high percentage of the rural Clark County homes should qualify.
If you have an interest in this type of loan and home purchase please give me a
call (John) at 360-258-2494 or Kathryn at 360-258-2363.