USDA can be a great product right now for those in need of 100% financing.
Today we had Gregg Anderson from the Medford, Oregon - Bank of America (gregg2.anderson@bankofamerica.com) in our office going over a few of the highlights of USDA and there were a few things that we definitely did not know.
We were aware to some extent of the income limitations and the allowable property areas, but were not aware that a property requiring flood insurance can really throw a wrench in things. USDA will ask you to find a similar home in a non flood area if at all possible. This is great info and something we all need to be aware of.
Also, USDA requires a lower front end debt ratio than other government programs making it a bit more restrictive and tougher to qualify for than say FHA.
Though it has its restrictions and may take a bit longer to underwrite, the borrower is rewarded by receiving 100% financing and a lower rate than most other fixed loan products.
Thanks much for the info Gregg...
Joe Yates
The Atlas Group
Medford, Oregon Real Estate
TAGBrokers.com
MedfordOregonAgent.com
Distressed Property Specialists, REO / Foreclosure, Short Sales
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