Many people are shocked to hear that 100% financing still exists, but it does! The USDA (United States Department of Agriculture) offers loans directly funded by the government to assist low income individuals and families obtain homeownership in rural areas. The state of Oregon has many cities that qualify for this financing including locations in Deschutes, Jefferson and Crook counties.
The loan is a 30-year term with promissory note interest rates set by the lender. As stated, there is no required down payment, and borrowers can use a seller credit to pay for loan closing costs and prepaids of up to 6% of the sales price. There is no mortgage insurance unlike FHA financing, but a 2% funding fee which can also be financed applies.
Applicants' income must not exceed 115% of the median income for the area to qualify for this loan program. The lender determines the repayment feasibility by taking into consideration family income to debt ratios and credit history.
Although this program is designed to help first-time homebuyers, this is not a requirement. However, the borrower cannot own any other home.
Please contact me today if you would like to see if you and your desired property are eligible for a USDA 100% financing mortgage.
Contributed by Dana Bruce, a member of my Resource Team for buyers with whom I am working. She can be reached at:
Sunset Mortgage Company 50 SW Bond Street Suite 1
Bend, Oregon 97702
541.318.1900 Office
541.318.0042 Fax
541.480.6845 Cell
Thanks, Dana!!! Contrary to popular opinion, banks ARE loaning money, and there are some pretty darned interesting programs available for you.