Do you like the idea of living outside the hustle and bustle of the city? Is rural living the lifestyle you choose? There is a great home loan program that is right up your alley, called the USDA Guaranteed Rural Housing Loan Program. This is a government home loan program that may be used for eligible areas with population under 25,000 and away from a metropolitan area. For the Jackson County area of the Rogue Valley, this means eligible areas could be Ashland, Talent, Phoenix, Ruch and Jacksonville to the South of Medford/Central Point, or White City, Eagle Point, Shady Cove, Gold Hill or Prospect to the North. There are eligible areas in Josephine County, outside of Grants Pass, too.
The USDA Guaranteed Rural Housing loan program is a 30 year fixed rate loan. Unlike the FHA home loan programs, there is no upfront or ongoing monthly mortgage insurance premiums - just a one-time 2% guarantee fee at closing. Another difference between the USDA Guaranteed Rural Housing loan program and the FHA loan programs is there is no minimum down payment requirement – you may finance up to 100% of the purchase price AND the 2% guarantee fee AND closing costs if the appraised value for the home you are buying supports this.
The main highlights of the USDA Guaranteed Rural Housing loan program guidelines are:
- Your household income needs to be within eligible limits, currently:
|
As of April 20, 2009, the income limits for all non-high cost counties will be: 1-4 Person |
5-8 Person |
|
73,600 |
97,150 |
- The property you purchase needs to be in an eligible area, which you may lookup on the USDA’s address lookup.
- You may borrow up to 102% of the purchase price or appraised value, whichever is less, and may finance closing costs if there is room.
- Seller may contribute up to 6% of the purchase price to cover your closing costs
- If you are buying a home that needs some work, like a foreclosure or short sale, you may finance up to $10,000 in repairs based on the value of the home upon completion of them.
If you were thinking you would need thousand of dollars in order to buy your own home, think again. You will need to be prepared to write three checks, though – one for your earnest money deposit (figure maybe $500-1,000), the next for your whole house inspection (figure $350 for this one), and lastly your appraisal fee (figure $450). Both the whole house inspection and appraisal fee can be covered by a closing cost credit, so you very well could end up bringing ZERO money to the closing table if the parties agree. You still need to make sure you have the roughly $1,350-1,850 though, even if it is a gift from a family member.
This is a GREAT home loan program! What are you waiting for? The inventory of available homes for sale here in the Rogue Valley is shrinking rapidly in the lower price ranges. Call or e-mail today to get preapproved, or apply online at www.Quality4Loans.com.
See you at the closing table!
Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com
For additional tips on How To Buy A Home In The Rogue Valley, Oregon, follow these links:
How To Buy A Home In The Rogue Valley In Oregon | Using The Neighborhood Stabilization Program
How To Buy A Home In The Rogue Valley, Oregon | If You Are A Self-Employed Borrower
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