There is a great article in Sunday January 11, 2009 Oregonian by Connie Potter that talks about USDA and Rural Housing Direct Loans. Both programs are offered by the USDA and are geared toward helping people into home ownership in rural areas of Oregon. Your clients do not need to have money for a down payment. Here are some key points of the article:
USDA's Guaranteed Rural Home Loans are meant for "middle America" The loans originate with an approved lender but have a loan guarantee from USDA that protects the lender from the risk of loan loss. Borrowers don't have to have a perfect credit score to qualify. There are limits on household income. A family of five can make up to $84,300.00. Loans are available for new or existing homes, town homes and condos. New manufactured homes are eligible if they are purchased through an approved under certain rules.
Closing costs and necessary repairs can be financed into the loan, up to 100 percent of appraised value.
Rural Housing Direct Loans are available for low and very low income households. There are specific limits and a maximum loan amount for different areas.
With direct loans the mortgage payments are subsidized based on the household's adjusted income. Borrowers are required to repay all or a portion of the payment subsidy received when the home is sold. In order to qualify for this type of loan, the family must be without adequate housing but must be able to afford the mortgage payments including taxes and insurance. The USDA and Rural Housing Direct Loans do not require a down payment. FHA loans require a 3% down payment.
For more information, contact Rachel Reister, USDA Rual Development, 1201 N.E. Lloyd Blvd. Ste. 801 Portland, OR. or call 1-866-923-5626 Ext.1 or see on line at: www.rurdev.usda.gov
There is also a property eligibility calculator at: http://eligibility.sc.egov.usda.gov/eligibility/welcomeaction.do where buyer's can check the eligibility of properties.
Also contact Naida Paris, Senior Loan Officer of Valley Mortgage at firstname.lastname@example.org or 503-537-0132. or at her office located at 2505 Portland Rd. Newberg, Oregon 97132