Monday, July 23, 2012

Zero Down Financing is Available in Chisago County with USDA Rural Financing!

And just because the financing is rural, it doesn't mean you will have to buy a farm either! 

It's still the American Dream to own a home. With prices very affordable and interest rates are extremely attractive, now is a great time to purchase a first home! But not every potential homebuyer has sufficient funds for a downpayment and closing costs. So what are the options in the northeast Twin Cities Metro? USDA rural financing!

Most loan officers will tell you that a conventional mortgage can require 5, 10 or 20% for a down payment. Even government backed FHA loans will require that buyers have a minimum of 3.5% of their own funds to invest in their home. Our veterans have always had a wonderful zero down program available and the VA loan program is still a great option to those who have served our country. But for other buyers trying to come up with the minimum 3.5% down payment required by FHA or 5-10% down for a conventional loan is a road block to in their path to a new home.

There is good news for those considering buying a home in Chisago County. Most communities in Chisago County are designated rural areas and qualify for the zero down option, Rural Development Program through the USDA. Best of all this is NOT a pro
gram limited to first time home buyers…Anyone can take advantage of the USDA financing program if the home and your income meet the requirements.

Now when some people hear "rural", they immediately start to think I will have to buy a broken down old-time farmstead in the middle of nowhere. Nothing could be further from the truth! According to the
USDA Rural Development website, the program was created to "build stronger, more vibrant rural communities across the nation." This unique housing loan program does apply in many counties in the north and east metro that aren't so far from the cities and they don't have to be farmsteads either! Communities in Isanti and Chisago Counties including North Branch, Stacy, Chisago City, Lindstrom, Shafer, Taylors Falls and many others can possibly qualify for this program. If you are considering buying a home in any of these communities, USDA is a great program to look into. But only a handful of loan officers really know the ins and outs that make a program like this work.

I do work many north metro communities where the deals are nothing short of amazing. Homes that are 5-6 years old are being sold for $30-50K less than just a few years ago! Amazing properties with 4 Bedrooms, 2 Baths, 3 car garages and ½ acre yards priced in the $200K range. Beautiful homes in move in condition…And with the USDA program they can be purchased for ZERO DOWN!

I work with some very good loan officers that understand USDA financing and can get you started on your path to home ownership..
These mortgage professional assist buyers and sellers all over Chisago County using this unique CONVENTIONAL LOAN program. Some of the features and benefits of the program include:

  • NO down payment
  • NO monthly PMI
  • The seller is allowed to pay all reasonable closing cost and prepaids up to 6%
  • NO hit to the interest rate for the zero down
  • NOT just for first time home buyers
  • NO reserves needed
There are income limits to the program that will prevent some buyers from qualifying. These numbers have recently increased to allow more potential buyers to take advantage of this unique opportunity. Household income does include all residents in the home that work so yes, your teenager’s income from a job at the local fastfood chain will be included as would be your retired mother’s social security payment if they are living in the home. These income limitations are guidelines and, in some cases, may be exceeded.

Understanding the restrictions is essential but the benefits to the program are enormous! If you are considering a home in Chisago County, plan on speaking with a qualified loan officer that understands the rural development loan program before starting your home search. You could be able to afford more home than you expect. Likewise, working with a REALTOR ® that knows understands the current market conditions of the communities within this program are just as critical to your dream home becoming a reality.


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