100% financing has become harder to find but there are still a few options available in Oregon. One is, of course, Federal VA but this is open only to veterans and active duty military personnel. A fantastic opportunity to purchase a home for someone that qualifies.

Next would be a FHA loan with some sort of down payment assistance program, of which the only ones currently available are SHOP, HAP and PAL. Unfortunately, HAP and PAL are currently out of money according to recent reports. (Please see previous postings for what these are.)

That brings me to the USDA Rural Guaranteed Housing Program. Not only is this program available to 100% financing, you can actually finance the closing costs in the loan if the appraisal is higher than the purchase price and will go to 102% if the financing fee is included in the loan amount.

Other benefits of this program are:

•·         No Mortgage Insurance. 2% funding fee only.

•·         Local processing

•·         Conventional underwriting

•·         Moderate income to qualify. OR County Income Guidelines

•·         Much of the state qualifies. OR ineligible areas

•·         No maximum loan amount

•·         Seller can contribute to closing costs

USDA (United States Department of Agriculture) doesn't make the loans for this program; they offer a guarantee of the loan so that lenders are more secure in the lending. USDA will sign off on the loan after underwriting is complete from the lender, so there is a slightly longer processing time. Pricing is comparable with FHA rates.

Areas of Lane County that qualify for these loans are: Cottage Grove, Creswell, Veneta, Junction City, Oakridge, Florence and many others outside the urban grown boundary of Eugene/Springfield. There is a specific address database on the website that will determine if a property qualifies.

The income qualification for the guaranteed program is quit liberal updated regularly.