Steve and Eleanor Thorne Mortgage Loan Officer, NC 919-649-5058

USDA Rural Development Mortgage Loans are not just for farms, and if you qualify for them - they are better than FHA Loans!

Here are a few key points:

• Credit The days of purchasing a home with poor credit are long gone. You need at least a 620 credit score to purchase a home using FHA or USDA financing options

Downpayment USDA does not require a downpayment, FHA requires a 3.5% downpayment.

Closing Costs Closing costs of up to 5% can be paid by the seller, or it can be a gift in either loan scenario. Mortgage Interest Rates are pretty much the same.

So if you have the money for a downpayment - why would you choose the USDA option? Easy, it's cheaper! USDA Home loans and FHA Mortgage loans each have their own kind of PMI, or Mortgage Insurance.

The insurance for USDA Home Loans is MUCH cheaper - making it a better choice!

If you are considering a purchase in Garner, Johnston County, McGees Crossroads, 40/42 or the Cleveland school district, and have questions about mortgage loans - please call Steve and Eleanor Thorne with Meridian Residential 919-649-5058. We have the best mortgage rates, and we do a lot of business in Johnston County, NC.

If you are a first time homebuyer, trying to use the $8000 Tax Credit, and you want to consider USDA financing, PLEASE read this NOW!

If you're like my friends, you're trying to figure out how to get your little piece of somebody's bailout!

With the economy in such bad shape - and the number of foreclosure notices in today's N&O filling 5 full pages - there are a ton of people who are out there trying to "find a deal."

If you're in that boat, and you are purchasing property to LIVE IN, then the 203K loan might be a good property for you! The 203K is a FHA program that allows you to borrow between 5k and 35K, in addition to the home, fix it up! The money can be used to buy appliances, fix the roof, new carpet - most repairs you might need for a home, with the EXCEPTION of gaining more square feet. If you're trying to add a room onto your home - this is not the program you're looking for.

Because it's an FHA program, you can only borrow a total of $295,000 (if it closes by December 31, 2008) or $271,050 if you close in January.

For more information on this loan, and to see if you qualify - click here - or call us! We'll be glad to answer any questions!

Well - if you were getting use to the $295,000 loan limits for FHA in Johnston County, you can kiss them GOODBYE!

According to the latest HUD Mortgagee Letters, FHA limits in Johnston County will go to $271,050. This change is based on the average sales price, which has gone down slightly.

This is IMPORTANT for homebuyers to know, and we need to get the word out as QUICKLY as possible! Loans that close PRIOR to January 1, 2008 will be able to close at the $295,000 limit, and they will only need 3% down payment (investment). After January 1, not only does the maximum loan limit go down, the amount of downpayment required is INCREASED to 3.5%!

If you have questions about FHA, VA mortgages or USDA home loan financing in Clayton, Smithfield, or anywhere else in Johnston County - please call us!