USDA Home Loan a great zero down payment option

For eligible areas, the USDA loan program allows potential home buyers to purchase homes with no down payment, and in some cases allows them to finance their closing costs into their loan.  This government-backed program has allowed thousands of families to realize the dream of home ownership with less up front money than other loan programs.

The USDA program is one of the few 100% financing programs available in today’s tighter lending environment.  Some of the highlights of the program include:

• 100% financing – no down payment required.
• No loan limits, sales price limits, or seller contribution limits
• No Mortgage Insurance – only a one time guarantee fee.
• Closing costs can be financed if the appraisal is higher than the sales price.
• You don’t have to be a first time home buyer.
• There are no cash reserve requirements.

There are area restrictions, income restrictions and specific guidelines to the USDA loan program.  For income limits it is best to contact a USDA lender because there are specific ways the USDA calculates your income for qualifying purposes.

To determine if a specific property or area is eligible for USDA financing, click here: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11. 

For more information on the program visit our blog at http://usdahomeloan.wordpress.com/

Baxter Scruggs is a mortgage banker specializing in USDA loans in California, NMLS #156370.  He can be reached at bscruggs@sdmn.net, or at 760-497-7705, or toll-free at 877-347-0004, ext. 226. Licensed by the California Department of Corporations under the Residential Mortgage Lending Act.  Terms and conditions apply, all loans subject to underwriter approval.  Subject to change without notice.  Guild Mortgage Company NMLS #3274