Green Bay Mortgage News

USDA Home Loans - Green Bay Wisconsin

Can you still purchase a property with no money down?  YES!  Despite the media continuing to pick apart the housing market and saying that we need at least a 20% down payment in today's day and age to avoid the recent turmoil with the foreclosure market. 

This is a great purchase option, and it's available for everyone, not just first time homebuyers.  It's a USDA Loan.  USDA loans are primarily used to help low-income individuals or households purchase homes in rural ares.  Applicants for loans may have an income of up to 115% of the median income for the area.  Here is the link to determine wether you qualify for this program or not.

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=pageLoad&requestInfo=GuaranteedIncomeLimits&NavKey=incomelimit@12

Here is the highlights of the programs and qualification requirements:

• Property must be in a rural area.  You can also check the property eligibility at: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11
• In the event you had a bankruptcy, the discharge date must have been three years or greater from today's date.  Same rules apply to a short sale or a foreclosure.
• This program is 100% financing with NO PMI.  Yes you read the right, you don't have to put 20% down to avoid the PMI.  This is a very strong option to consider when purchasing a property with the cheapest monthly payment possible.
• Interest rates are comparable to a traditional FHA or Conventional purchase.
• Their is a 3.5% funding fee at closing that rolls into the loan.  You will actually be financing 103.5% of your home's purchase price.  This protects the lender in the event of a payment default on your loan.
• Currently, there is a minimum credit score requirement of 620.