100% Home Financing is Still Around
Over the past two years we have seen some rough times when it comes to getting financing for a home loan. With the melt-down or mortgage crisis we see everyday in the news we have seen the tightening up of available loans that offer 100 percent financing for the purchase of a home and many people believe that they are all gone. Well, there's good news as the 100 percent loan is not dead. In fact, there is a program available in most of northwest Ohio that is even better than the 100 percent loan. It's called the USDA Rural Development loan and it is a great program to assist people in buying a home. The USDA RD loan is a government-backed loan that offers 100 percent financing to people who qualify. It's flexible as each loan application is manually underwritten and not necessarily credit score driven but rather credit driven.
The USDA RD program is intended for low to moderate income families in RD "eligible" areas. All homes in Defiance, Paulding, Williams, Henry and Putnam counties meet this eligibility requirement. This program is quite exciting as it offers 30 year fixed rate loans at competitive rates, has no premium mortgage insurance requirements (PMI), allows up to 6 percent in seller concessions or seller assistance, and allow for some repair costs to be financed into the loan. Together with the new tax credit that is available for first-time homebuyers, this loan program can get a homebuyer in a home and not only has the possibility of being a "no money down" deal, but can be a purchase one can have significant equity in.
If you have been considering buying a home but have been sitting on the fence thinking you didn't have the money to put down on a home, then this great program may be just what you are looking for. Combined with the great rates, the high inventory of available homes, and the tax credit, this loan is a very powerful tool in the home buying process. As with any program, there are eligibility requirements to qualify, but if you are interested in more information about this exciting program contact me by email at Scott@butlermohr.com.
Scott M. Williams is a licensed real estate agent for Butler Mohr GMAC Real Estate for comments or questions contact him at Scott@butlermohr.com
Comments(1)