USDA and 102% financing

Mortgage and Lending with 1st Mariner Bank NMLS# 1119449

Yes you read that right.. There IS still 100% financing out there. Even better, you can roll 2% closing costs into the loan! USDA does not require any down payment from the buyer! What's the glitch? Well there are 2 main qualifiers:

a) You must not make too much money, but enough to qualify. Here's a tool to see if you do fit:

b) The property must be in a designated "rural" area. I live outside DC and there are still a ton of great areas that USDA covers within commuting distance.

USDA has a 2% guarantee fee (like mortgage insurance) rolled into the loan and a small monthly fee. These are still less than FHA and you dont need a down payment!!!!! 

Some other tips you should know:

USDA has to have funds available! If they run out, usually it replenishes within a month or so. The file would just be approved subject to funds.

USDA underwrites the loan! There are no rushes; turn times depend on them. Closings have to be flexible! The USDA office closest to the subject property underwrites the loan.

Low rates. 

Clients can refinance USDA later too!

Concessions: No maximium. Cant exceed closing + prepaids. 

Appraisals are conventional appraisals. 

Condominiums –they accept FHA, VA or Fannie/Freddie approved condos!

Clients can purchase a new home, existing home, manufacured home on perm foundation, or modular home

Clients can purchase land and build on it and later “buy it” under USDA financing

No purchase price limits. Will depend on income & property eligibility

Land value(as determined by the appraiser) cannot be more than 30% purchase price

Consumer Credit Counseling and C13 Bankruptcies: Need to verify 12 months clean payment history and get court / CCCS approvals

Borrower usually has to attend a 1st Time Homebuyer Class – can be done online

Eligible down payment assistance, seller concessions, gift, or grant programs offered by acity/county municipality or housing development authority are allowed. Gift funds fromqualified sources are allowed 

Borrower can’t have 20% down available to them or they will not be eligible (401k is OK)

3 year tax returns required (to verify 1st time homebuyer and “other incomes or deductions”)

Verification of Rent / proof of housing payment usually required for 680 and under. 12 months cancelled checks or a Management company VOR is acceptable. 

Must be a 1st Time Homebuyer OR


                        -Show that they relocated a reasonable distance from their commuting area

-Property they are vacating is not structurally sound or functionally adequate (family size etc)

-Occasionally divorce/separation; depending on situation







Comments (3)

Dale Baker
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information
Howdy and afternoon Diane
Welcome to the ActiveRain Real Estate blogging community! You'll sure find a lot of mighty fine folks here in the community to get to know. I'm one of the many ActiveRain community members which are an ActiveRain Ambassador.
If you should ever have any questions about how to do anything or about the rules of the ActiveRain community, please feel free to contact me either by sending me a e-mail or by giving me a call, I'll sure be mighty glad to give you a helping hand. If for some reason I don't know the answer to a question which you might have, I'll sure will find out the answer and get back to you with the right answer.
Take the time to look at the different groups within the community, pick some different groups to join, post your blog posts in them, be sure to take the time to read the posting guidelines of each group you might want to join, folks sure will want to follow them. Members can join as many or as few of the different groups within the community as they would like to. Members are able to post their blog posts in 5 different groups at a time.
Keep up your mighty fine job of posting! I'll be looking forward to seeing even more blog posts written and posted by you, plus seeing you join some of the mighty fine groups in the AR community.
Have a good one
Dale in New Hampshire
Jul 29, 2013 11:18 AM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

Welcome to Activerain and I hope you are learning a lot and if you ever need any assistance, don't hesitate to check out my blog, email me, call me, I will be glad to help you in any way possible. Also, check out the main page of Activerain and look for the Activerain University tab, there are lots of educational webinars to help you build your business.

Jul 29, 2013 02:33 PM
Ken's Home Team LLC. | 360.609.0226 | Portland, OR & Vancouver, WA Real Estate Team
Ken's Home Team LLC. - Vancouver, WA

Welcome to Activerain from from all of us at Ken's Home Team. I think you will find this site to be a wealth of knowledge and referrals. This really is the best real estate blogging and real estate network on the internet. If you have any questions about Activerain, reach out to the wonderful Ambassadors here in the rain. (They are a wealth of knowledge and were picked by the Activerain staff for their willingness to help others)

Jul 29, 2013 02:38 PM