USDA loans are great options for 100% financing.

By
Real Estate Sales Representative with Re/Max Town & Country

I just lost a deal today that by all means would have been a sure thing 3 months ago.  I met this buyer through the internet...looking for homes online as over 80% of buyers are doing now and introduced him to our in-office mortgage people who was able to set up a face to face meeting to do a loan application and allow me to meet and get to know him too.  He was so excited to be buying a home; asking for any all prospective properties to be sent to him and he was eager to begin the process.  It was heartbreaking to see someone, a first time home buyer, be told that his fairly good credit was not good enough to buy a home.

After being forced to do away with seller down payment assist loans which, by the way is a good product when it's done right, I heard about a great alternative product: USDA garaunteed loans.  They are not the lender, although they can be if the buyer qualifies, but they are backing the loan.  A loan which can be 105% LTV...there's a catch though, it has to be in a rural area...you can check out the address eligibility on their website: www.eligibility.sc.egov.usda.gov.com and the income has a maximum...also can be checked on that website.  Qualifying is much the same as FHA but has some more flexibility on credit.  He met the income - debt ratios with no problem but had just a few hits on a couple of accounts...something that would have passed in manual underwriting without any problem...we're talking minor credit issues here.  But, we got a no.  It surprised us all; I don't know why with all we're hearing on the news.  This is a definite example of how the markets reaction is just shooting themselves in the foot.

I hope this helps other agents; it's a great option for agents with access to rural areas.  But for me, well, not today.  Thank you Wallstreet, Bankers, Fannie Mae, Freddie Mac, and a whole slew of don't fix it till it's broke money motivated people...WE now are all going to pay the price when most of you probably have a nest egg so large now that you don't even HAVE to work anymore.

Salt on an already painful wound is what I call it.  Sure hope there's a DOCTOR in the HOUSE!!!

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Kirk Westervelt
Van West Realty - Greenville, SC Realtor -Short Sale Expert! - Greenville, SC
Kirk Westervelt, Broker In Charge, Van West Realty - CDPE - Short Sale Agent - Home for Sale - Greenville, Simpsonvil...

Hello and welcome to Active Rain! I encourage you to learn from others, share your knowledge and experiences with all of us, enjoy yourself, and try to log in and join us in the Active Rain community as frequently as possible. I look forward to your future blogs and comments! Take care, --Kirk.

Oct 01, 2008 01:54 PM #1
Rainer
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Lorena Westervelt
Van West Realty - Greenville, SC
Co-Founder/Co-Owner

Hello, welcome to Active Rain! This seems like a wonderful environment to network as well as learn from others. I hope you enjoy yourself and participate often in the Active Rain environment!

Oct 01, 2008 02:34 PM #2
Rainmaker
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Kevin Wood,
Keller Williams Southern Arizona - Tucson, AZ
Tucson, AZ Realtor

Chris,

Welcome! Sharing your perspective makes Active Rain what it is, an unlimited educational resource. The more you express who you are and what makes you tick the more people will know, like, and trust you. And will probably refer you. Just like anything else in life the "Giver's will Gain".

 

 

Oct 01, 2008 03:29 PM #3
Rainer
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SEAN THANH NGUYEN
Kellson Real Estate LLC - Kellson.com - Phoenix, AZ
Designated Broker - Vietnamese Broker

Hello Chris,

Welcome to Active Rain ! Check out "How To Use My Settings Page" under "Getting Started" section. It helps to get your blog(s) ranked higher in Google & Yahoo!

Oct 01, 2008 10:08 PM #4
Rainer
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Ron Martin
Keller Williams Realty - Spartanburg, SC
Ron Martin Team

Good morning & welcome to Active Rain, You have joined an excellent site to receive free marketing, absorb more information from others, share ideas.  Be a blogger and have fun. If you have any clients moving to the Greenville, Spartanburg, & Anderson South Carolina area we are your team. We are on all three MLS. Great blog!  Keep it up. Again Welcome!!

Oct 01, 2008 11:30 PM #5
Rainer
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Yvette Gardner
Keller Williams Realty, Spartanburg, SC - Spartanburg, SC

Welcome to the Active Rain community. You have chosen a great site with tons of information you can learn from.  Have fun with it and hope to see more of your blogs soon!  We have a team of four outstanding full time agents to assist your buyers and sellers in Spartanburg/Greenville, SC.  Again, welcome to AR!!

Oct 02, 2008 12:17 AM #6
Rainer
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Jean Terry
Keller Williams Realty Spartanburg, S.C. - Spartanburg, SC

Hi, and welcome to Active Rain, a great site to network, share, learn and have fun.

Good Luck

Oct 02, 2008 03:48 AM #7
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Keith Elliott Jr
KEIRE Realty Group - Manassas, VA
Principal Broker/Owner

Hello Chris,

Welcome to Active Rain and congrats on your first post! The opportunities to learn and network are incredible here. Best of luck to you!

-Keith

Oct 05, 2008 04:11 PM #8
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