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USDA Loan + 50¢ + My First Time Buyer = First Time Home Buyer SCORE

By Carla Muss-Jacobs, RETIRED

Industry Observer with RETIRED / State License is Inactive Inactive License Oregon

May 11, 2013 05:04 AM

USDA Home Loan USDA Loan + 50¢ + My First Time Buyer = First Time Home Buyer SCORE

As an Exclusive Buyers Agent in the Portland Metro area, empahsis is on the METRO element. We are not a rural area, but . . . there are some areas in my market area that do fall into the USDA Loan program areas and when that happens, my first time buyers score!

The USDA Home Loan Program and How My First Time Buyer SCORED

As a Buyers Agent in the Portland Metro real estate market since 1999, I've seen it all . . . or so I always think.

Each real estate transaction is different. And yesterday was a first.

A USDA home loan from the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, is a mortgage loan offered to rural property owners by the United States Department of Agriculture.

50¢ and My First Time Buyer

With any transaction there is the Earnest Money deposit. My client had a $2,000 commitment for Earnest Money, and I was very successful in negotiating ALL of his closing costs to be a Seller Concession at the time of closing. The USDA Home Loan Program allows borrowers to have these terms.

In a very tight real estate market, in an area that has first time buyer homes being gobbled up . . . I wasn't sure if the FULL amount of my client's closing costs would be / could be negotiated. But I did it!

When the transactions closed . . . my client's Earnest Money was refunded, all but 50¢ He received a check for $1,999.50 - which was his Earnest Money refunded, because the USDA Home Loan Program is a ZERO down program!

--------> My Client had no down payment, no out-of-pocket closing costs . . .

. . . He got into his house for 50¢ <---------

NOTE: My client has EXCELLENT credit, money in the bank and steady / secure employment. A borrower/buyer MUST qualify for the USDA Loan Program . . . and when they do . . . SCORE!!

USDA Loan Program is ZERO DOWN

The USDA Home Loan Program offers qualified buyers with a ZERO DOWN, 100% financing loan. The types of USDA Home Loan Programs offered:

Guaranteed Loan - This USDA Home Loan is for buyers with good credit.
Direct Loans -- This USDA Home Loan is for low income buyers
Rural Repair and Rehabilitation - This USDA Home Loan is for properties that need help and for very low-income borrowers.

A Sampling of USDA Home Loan Program Areas Served in and Around the Portland Metro Area

NOTE: The USDA Home Loan maps are currently scheduled to be changed on September 30, 2013

The following cities have homes for sale that have USDA Home Loan Program terms:

Amity USDA Home Loan
Banks USDA Home Loan
Beavercreek USDA Home Loan
Canby USDA Home Loan
Carlton USDA Home Loan
Cornelius USA Home Loan
Damascus USDA Home Loan
Dundee USDA Home Loan
Estacada USDA Home Loan
Forest Grove USDA Home Loan
King City USDA Home Loan
Lafayette USDA Home Loan
McMinnville USDA Home Loan
Mollala USDA Home Loan
Newberg USDA Home Loan
North Plains USDA Home Loan
Oregon City USDA Home Loan
Sandy USDA Home Loan
Sheridan USDA Home Loan
Sherwood USDA Home Loan
Willamina USDA Home Loan
Wilsonville USDA Home Loan
Yamhill USDA Home Loan

Note: Not all homes for sale in any of the USDA Home Loan areas will be OFFERED for sale as USDA Home Loan terms.

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Jane Peters

Home Jane Realty - Los Angeles, CA

Los Angeles real estate concierge services

I wouldn't recognize this loan if it hit me in the face. Congratulations one lucky, happy buyer.

May 11, 2013 05:25 AM

Lyn Sims

Schaumburg, IL

Real Estate Broker Retired

Wowus, good deal. Glad you suggested that offering to that buyer. How can you go wrong with $.50 down?

May 11, 2013 05:58 AM

Tammy Lankford,

Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA

Broker GA Lake Sinclair/Eatonton/Milledgeville

Sold a young college professor a home with same loan a couple years ago now. Great deal for someone starting out without having to burn through all their savings to get in a home.

May 11, 2013 06:30 AM

Andrea Bedard

Thompson Company, REALTORS® 240.593.2860 - Silver Spring, MD

Fluent in Real Estate & German, M.A. ABR ASP CIPS

Wonderful success story Carla, congratulations to you and the buyer! Were you able to keep the refund a surprise until settlement?

May 11, 2013 08:58 AM

Michelle Gibson

Hansen Real Estate Group Inc. - Wellington, FL

REALTOR

Carla - Congrats to you and your buyer!

May 11, 2013 10:01 AM

Kathleen Daniels, Probate & Trust Specialist

KD Realty - 408.972.1822 - San Jose, CA

Probate Real Estate Services

Carla, Great job and a great story. Only a buyers agent who is on the ball, on top of her game, and on top of the market could score like that.

May 11, 2013 12:11 PM

Kwee Huset

Kwee Huset Realty - Venice, FL

Venice Florida Homes For Sale

Hi Carla, USDA loan has more lenient guidelines and less on closing cost too. Congratulations on your Featured and your successful negotiation.

May 11, 2013 12:15 PM

Carla Muss-Jacobs, RETIRED

RETIRED / State License is Inactive - Portland, OR

Hi Jane . . . not in your area, LOL

Hey Lyn -- it wasn't too far out of the realm for a commute

Hi Tammy -- yes, my client still retains all of his nest egg!

Hey Andrea . . . oh, that would have been GREAT!! No, I explained it all to him early on.

Hi Michelle -- thanks!!

Hey Kathleen . . . I was really working to get the closing costs for him, paid off!!

Hi Kwee . . . there's some good deals to be had that way!

May 11, 2013 01:10 PM

Melissa Zavala

Broadpoint Properties - Escondido, CA

Broker, Escondido Real Estate, San Diego County

A handful of years back, buyers could receive large checks back at closing. Kudos to you; what a challenge in this market and congrats to your buyer!

May 11, 2013 01:15 PM

Sheila Morales

Kauai Property Shop - Kapaa, HI

Your Kauai Hawaii Agent

USDA has some great programs for buyers if it's available in your area.

Congrats on the great deal you got for your clients. THey will be clients for life.

May 11, 2013 07:14 PM

Marc McMaster

RE/MAX Centre Realty - State College, PA

Putting my clients before myself

.50 is a pretty good one. When I bought my house a few years back I was in for about $400 total with closing cost help from the seller but .50 is about as good as you get!

May 11, 2013 11:28 PM

Barbara Hensley

RE/MAX Properties - Rockwall, TX

Homes for Sale in Rockwall County, Texas

Carla, congratulations on the feature! 93 Featured Posts

These types of loans are the very satisfying to buyers who are in areas that qualify. Great advise!

Happy Mothers Day!

May 11, 2013 11:30 PM

Richie Alan Naggar

people first...then business Ran Right Realty - Riverside, CA

agent & author

Carla rules and can get it done...Buyers, man your check book and call this lady now

May 11, 2013 11:52 PM

Hi Melissa -- taking into consideration the tight market we're in currently, this was wonderful for my client.

Hey Sheila . . . yes, when Venus aligns with Mars, the deals are out there . . .

Hi Marc -- yes, the point of this post! $400 was a SCORE as well!!

Hey Barbara . . . in the areas that qualify there are some good opportunities!

Hi Richie -- thanks for the comments.

May 12, 2013 02:58 AM

Cassandra Stewart

Future Home Realty - Tampa, FL

Your Tampa Florida Agent

Congratulations to you and your buyer Carla! Sounds like an interesting loan product. Definitely worth looking into if the buyer qualifies. Thank you for sharing.

May 13, 2013 08:19 AM