Home Loans: Is The USDA Zero Down Payment Right For You?

Posted by Matthew Lahti on Friday, July 5th, 2013 at 12:11pm

Washington State has solid and growing rural and agricultural community. As such, it is a prime location for home owners looking to take advantage of the USDA Zero Down Payment Program. The United States Department of Agriculture provides a program for low to mid income families looking to move into a home in a rural or agricultural community.

Because this is a federally guaranteed loan, qualifying applicants will find that they are fully financed meaning you aren’t required to put down any money up front. The loan must be no more than the value of the home as appraised. There is no limit to the purchase price, what matters is the qualifying ratios, which are twenty-nine percent for housing costs, and that you have an established income. Special circumstances may be considered if the ratios are exceeded. This program does have caps on the total amount of income you can have and still qualify, click here, for more information on the income requirements for Washington State. Not your first home? Don’t fret; this program unlike many others does not disqualify you for having already bought a home.

Fees, Costs and Property Types

Fees can be a scary thing; however, in the USDA guaranteed loan program you’ll find that the lender fees and qualifying closing costs can actually be included in the loan. Also, the seller, if willing, can pay up to 6% of the final home price towards the closing costs, fees, and even restoration work. The loan is for 30 years with fixed interest rates that are negotiated between the buyer and the approved lending company. Among the type of homes that a USDA loan can be used for are new homes, previously built homes, new manufactured homes, and more.

When you're looking to find the perfect home in the country you should consult with a realty group that has a quality reputation. They'll understand the nuances of the USDA zero down payment program, such as what locations qualify. If you're ready to get out of the city rush and back to a simpler life, take advantage of this amazing federal program. Get in touch with a qualified professional.

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