This week, we have a guest blogger. Tony is a Hawaiian Real Estate Agent, and he shares some wonderful information:
You’ve heard of the USDA and seen their stickers on the steaks you buy at the grocery store. But did you know they also insure home loans? Strange as it sounds, the USDA’s rural development program has a loan program that allows you to buy real estate with no money down in any area that they deem “rural.”
Good news for readers of this blog – many areas of Arizona are eligible for the USDA 100% home loan! While most banks and lenders have long since stopped offering zero down home loans, there are still many brokers and lenders in every state who offer 100% financing through this great program.
The USDA home loan has some great features:
- 100% loan amount with no loan amount limit
- 6% seller concessions allowed
- No monthly mortgage insurance
- You don’t have to be a first time buyer
There is an income limit for borrowers, but that limit is pretty high in some areas. For instance, in Hawaii the limit is $109,000 a year, so most people still qualify. If you want to check your eligibility and look for a neighborhood near you in your state, check out the USDA’s website.
Oddly that “rural” designation happens to apply to a lot of areas that nobody else would consider rural. Even some larger suburbs are on the list, so wherever you’re reading this, there may be a community nearby that is eligible.
Tony Kawaguchi is a Realtor with Realty Executives Oahu and sells Hawaii real estate
100% Loan Program
USDA lonas are great! Here in TX we can only use them in certain area of town (rural) but they are great. The interest rate is not that much higher and you can move in for $0 down. Sign me up!
I heard about the USDA loan program from a friend. He told me how great they were and that I had to check it out. I wasn’t able to do that until I found out that now they started working with my area in Arizona. I’m very excited to see the beauty that every one talks about.
USDA loans would be nice and for some they would be better but I am not sure how they can help me getting a decent apartment in New York. Real estate market has been hit hard recently and loans doesn’t seem to be a ray of hope any more.
I’m not too sure about this, we are supposed to learn from our mistakes and $0 down sounds like we arn’t learning at all. You can’t have something for nothing people, at some point you will end up having to pay for this real estate transaction. This seems to be encouragement for people that want to get in over their heads. If you can’t afford to put any money down then you probably can’t afford to pay off the loan full stop.
USDA is a good loan. They are kinda hard to get in most areas. They also charge a 2% funding fee
.-= Mike (Dallas)´s last blog ..How to find a home quickly in Dallas Fort Worth Texas =-.
This is great information. This has not been very well publisized. Thanks for posting this. I am going to check into the possibilities of using it..
.-= Jill´s last blog ..Houston’s August market posts the lowest numbers of the summer =-.