We recently bought a home, renovated it and put it back on the market all within a month. Just 12 days after listing it, we accepted an offer. Why so quickly in this “difficult to sell” market? One reason may be that we were able to advertise it as qualified for USDA financing. What is USDA financing?
The United States Department of Agriculture offers home loans funded directly by the Government for certain properties. These loans are available for very low and low-income households. Qualified buyers are entitled to 100% financing for their purchase.
These USDA loans, Section 502 loans, are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to purchase an existing dwelling, purchase a site and construct a dwelling, or to purchase newly constructed dwellings located in rural areas. Mortgage payments are based on the household’s adjusted income.
There are other requirements such as:
- Acceptable credit history
- U.S. citizen or qualified resident alien
- Additional lender requirements
but with the possibility of 100% financing, shouldn’t you find out if a USDA program will work for you?