There are still ways to buy a home with no money down, but it is getting harder to do all of the time. USDA Rural Development is one of them. VA is also 100% real estate purchase financing.  Today I want to touch base on the USDA product. We refer to it as FmHA, or a Farm Home instead of FHA, Federal Housing. 

"USDA provides homeownership opportunities to rural Americans, as well as programs for home renovation and repair. USDA also makes financing available to elderly, disabled, or low-income rural residents of multi-unit housing buildings to ensure they are able to make rent payments." according to the USDA Rural Development website.

For the low income people, the USDA has a program of direct loans where the interest rate is subsidized depending on income and family size. Here are the income limits per their website. These are direct loans from one of their housing offices. The one that services Lane County is the Corvallis Area office, (541) 750-7033. According to what I was told this afternoon, the program is currently out of money until (they hope) November. Of course, this could change for the better or the worse.

The loan limit for this program is currently set at $237,180. The area serviced by the program is basically anywhere outside the urban growth boundry of Eugene/Springfield. It is available for purchases and home improvement.

In addition, USDA Rural Development has a "Guaranteed" loan program for moderate income people purchasing homes outside the urban growth boundries. The current income limit for a family of 4 is $70,750. Guaranteed Rural Housing Loans are originated by approved mortgage lenders (like me) to qualified moderate income individuals and families in eligible rural areas.  The loan guarantee protects the lender from risk of loan loss and the lender passes this benefit on to the homebuyer in the form of a loan that requires no down payment or mortgage insurance at a conventional loan interest rate.  Closing costs and necessary repairs can be financed into the loan, up to 100% of the appraised value, or up to 102% of the appraised value if the borrower wishes to finance the 2% guarantee fee.   There is no maximum loan amount, but household income must be within the household income limitfor the area.  Borrowers do not have to be first-time homebuyers.

The program is only available for manufactured homes that are newly set up as part of the purchase and only through dealers approved with USDA for the program. Otherwise it must be a "stick" built, in other words, site constructed and not factory constructed on a frame.

So, if you are interested in purchasing a home in Cottage Grove, Creswell, Junction City, Oakridge, rural Lane County or some other "rural" area, this program may be for you. There are still prgrams available for home purchase with little or no down payment. Call me today for an appointment, (541) 221-3455 or go on line to www.alpinemc.com/fchamberlin/asp and fill out an application.