We have many clients asking if there is anyway to do 100% financing still. The answere to this question is YES! With the use of Rural Development loans you are able to do 100% financing for properties in certain geographic locations. If you would like to check out if the location of a property will work for this program please contact me or simply go to http://elgibility.sc.egov.usda.gov. Not only do they have geographic guidelines but income guidleines based on the household size. Here are a few of the key points of this loan program.
Financing: 103.5% Financing based on Appraised Value
Payment Reserves: No reserves are required
First Time Buyer: No first time buyer requirement
Seller Concessions: 6% Seller concessions allowed
Gifts: 100% gifting is permitted
Ratios: 29/41 Exceptions allowed with compensating factors
Primary Income: Two year history
Salary Increases: Salary increases within 30 days of first payment due date are acceptable
Bankruptcy/Foreclosure: Chapter 7 and 13 must be discharged for 3 Years and Forclosure must be complteted 3 years earlier
Homebuyer Education: Case by case basis or when required by RD
Cash Contribution: No minimum cash contribution from borrowers
Occupancy: Owner Occupied Only
Repairs: 100% of repairs may be financed based on as is improved value ( Ask loan officer to explain)
If you have any questions please feel free to contact me at 763-300-7764.
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