USDA No Money Down, 100% Financing, Mortgage

The Rurual Economic Development Fund is what it use to be called, now it's just a part of the USDA, and the goal is to provide mortgages, and incentives for the purchae of homes in less "densly" populated areas.

Although 100% financing with conventional mortgages is out and FHA with down payment assistance is no longer available, you can get 100% financing through a USDA loan. Just about the only 100% options area VA and USDA.

There are certain eligibility requirements that must be met in order to obtain a USDA loan. Some of the eligibility standards that determine if you qualify for a USDA loan for your home include what county and zip code the home is located in, your current income and credit history, as well as the number of dependents you can claim.

Borrowers who qualify for a USDA Rural Development home loan have the flexibility to pay nothing out of pocket for a down payment. That means a borrower can finance up to 100% of the appraised home value. Or, a borrower can have a gift or grant go toward a down payment with no money out of pocket.

Also, USDA loans require no mortgage insurance payments. Unlike an FHA guaranteed home mortgage, a USDA Rural Development home loan does not require mortgage insurance premiums to be paid by the borrower. That means more money can go toward the mortgage payment each month.

So, in Wake County, NC that would be the areas in Apex, Holly Springs and Wake Forest. All of Fuquay and Garner qualify for a USDA mortgage and parts of Durham qualify as well as all of Johnston County.

Again, it's a no money down loan, with no PMI! To learn more and to see if a home is in an eligible area, visit the USDA site at http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

And if you want more information about qualifying for a USDA home loan, please contact me and I can put you in touch with a loan officer that specializes in these types of loans.

William "Art" Sexton
Sexton@RERNC.com
http://www.raleigh-real-estate.biz