Umatilla Florida Blog

    The travails of the mortgage market may lead some to believe that there is no way to get a 100% financing home mortgage. But there is. It is a program with the US Department of Agriculture called the Rural Development Loan Program. Here's how it works:

• This is NOT a program solely for rural areas. Currently, all of Lake County, Florida is eligible. Good portions of Orange, Marion, Sumter, Volusia and Seminole counties are also eligible. Please note that this program is designed for single family homes on normal building lots only. Farms and other income-producing properties do not fall within its guidelines.
• A home buyer makes application using normal channels through either a bank or a mortgage company. The loan must first be approved by the lender's underwriting department. Once approved, the loan is then sent to the USDA for final approval. USDA approval usually takes 24-48 hours.
• Maximum income limits are in place. However, there are generous corrections available to get higher income levels to fall within program limits.
• The loans are for 30 years and feature very competitive fixed interest rates.
• There is a 2% fee, paid to the USDA, to cover USDA's guarantee of the loan.
• The primary number which governs the USDA approval process is the appraisal amount. The property must be appraised by an FHA approved appraiser. The loan can be for up to 100% of the appraised amount (102% of the appraised amount if the USDA 2% fee is included in the mortgage).
• Closing costs and other fees can be wrapped into the loan as long as the loan stays at or below the 100%/102% of the appraised values as mentioned above.
• Other than the 2% loan guarantee fee, there is no Private Mortgage Insurance (PMI) paid by the buyers. This is true for the life of the loan.
• Processing is streamlined with FICO scores above 620.
• There is no maximum purchase limit with respect to home price.
• This program is NOT limited to First-Time Home Buyers.
• There are no limits on sources of funds for closing costs. Gifts are OK. Funds from government programs such as SHIPP are also OK.
• The program is available on all foundation-built homes including those of modular construction. It is available for manufactured homes only if the home is new and only if the home is purchased from a USDA-approved dealer. (Existing manufactured homes are NOT eligible).

    This loan program is currently the best available for home buyers. More information can be found at http://www.rurdev.usda.gov.

    Buying a home is an exhilarating process. Currently, prices are at historic lows and a savvy buyer can typically become a home-owner for less than he or she is paying in the way of rent. The best way to take advantage of this opportunity is to work with a Realtor. Realtors have the training, experience and knowledge to turn any potential home-buyer's dreams into reality.

    Please feel free to contact me today for additional information on the many ways I can help you and your family.

    Thank you and God Bless America!!!

Geoffrey F. Presson

Barbara L. Johnson Realty, Inc.