I am doing my second deal with buyers who are obtaining USDA Rural Development Guaranteed Rural Housing Loan and I just have to sing the praises of this fabulous program!
This program is an alternative to FHA as it requires a 0% down payment! There are no purchase price limits and the cost of repairs can be rolled into the mortgage. The deal I am currently doing has allowed my clients to wrap in almost $10,000 of repairs into their mortgage amount for a new furnace, appliances, kitchen countertops and carpeting for a great deal on a foreclosure. We used this as an alternative for a FHA 203K loan.
The only catch is that not all areas are eligible for this program, including the city of Ann Arbor. The USDA Website is great as it has a map of eligible an ineligible areas. Here is the area eligibility information for Michigan.
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