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 program 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.

Copyright 2012 www.terieckholm.com

100% Financing AVAILABLE in Chisago County--USDA Rural Home Development Loans!

You want to own your own home. You know that prices are very affordable and interest rates are extremely attractive. But rising gas prices and a weak economy leaves you struggling to save for that down payment. Sound familiar?

Most loan officers will tell you that a conventional mortgages 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 program just for first time home buyers…Anyone can take advantage of the 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, it 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 in several of these communities and have shown homes in these areas of the past few weeks. The deals throughout Lindstrom and North Branch 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 for well under $200K. Beautiful homes in move in condition…And with the USDA program they are available for ZERO DOWN! I have a couple of great loan contacts that do understand USDA and can get you started on your path to home ownership with a USDA loan. These mortgage professional know I work with buyers and sellers all over Chisago County and the north and east metro so have given me a quick lesson on this unique CONVENTIONAL LOAN program. Some of the features and benefits 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.

Copyright 2011 www.terieckholm.com

USDA Rural Development Program Means 100% Financing IS AVAILABLE for Chisago County Buyers

Home buyers with limited funds for a down payment are in most cases required to scrimp and save for that first house again. Conventional mortgages 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% 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 program just for first time home buyers…Anyone can take advantage of the program if the home and your income meet the requirements.

Now when some people hear "rural", they immediately conjure up a picture in there head of an old-time farm 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, it is a great program to look into. But very few loan officers really know the ins and outs that make a program like this work.

I do work in several of these communities and have shown homes in these areas of the past few weeks. The deals throughout Lindstrom and North Branch are nothing short of amazing. Homes that are 5-6 years old are being sold for $30-50K less than just a year ago! In Lindstrom this week I have seen a number of 5-6 year old homes with 4 Bedrooms, 2 Baths, 3 car garages and ½ acre yards for well under $200K. Beautiful homes in move in condition…And with the USDA program they are available for ZERO DOWN!


· 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. These numbers have recently increased to allow more potential buyers to take advantage of this unique opportunity. For households in non-high cost areas, with up to four people, the income limit is $70,750. (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.) In households where 5-8 people reside, the income limitation is $93,400. 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.



Copyright 2009 Teri Eckholm http://www.terieckholm.com/

Homebuyers--Listen to that Little Voice Inside Your Head!

A few days ago I received a call from a past client. She excitedly told me that she was helping a very good friend who was in the process of buying his first home. The friend was enticed into the market by a Parade of Homes advertisement a couple weeks ago. It was for a new construction home in the Lindstrom/Chisago area that was for sale for around $150,000 with a zero down financing option. The friend was intrigued and asked my past client to tag along to see the home. At the model they were told that this particular home would qualify for one of the only zero down programs still available. From the conversation, the first time buyer thought the lending program was only available on this particular home, with this particular builder so he met with the builder’s recommended loan officer and was approved to buy the home at full price. He was seriously considering buying the home. But before signing, this first time buyer and my past client started talking and thinking, maybe we should run this by a trusted professional, a REALTOR®. Since the friend had never purchased or sold a home, my client called me.

Whatever prevented this young man from signing the document, a gut feeling or voice inside his head, it doesn’t matter. The instinct was right. He hadn't looked at enough homes to know if this was a good deal. See, it is in the builder’s best interest to make a sale at the most possible profit. So, this first time homebuyer wasn’t told a few things that really changed the picture:

1. The USDA program can be used to purchase almost any home in Chisago County including Lindstrom, Chisago, North Branch, Shafer, Center City and several other communities as well. (It isn’t available in Wyoming though.)


2. A buyer does not have to pay full price on a home even from the builder. They can negotiate the sale price the same as on any other property.


3. If you walk into a model home without your REALTOR®, the builder is under no obligation to pay out a commission to your agent. This means if the friend now decides buyer’s representation is necessary and signs a buyer’s representation agreement with me, the seller/builder is not obligated to pay any commission to me as their agent. The buyer would end up paying a commission to me out of pocket or buy the home without representation.


4. The builder, or builder’s representative, in a model home is not going to tell you if there is a better deal down the street. Even if there is a REALTOR® hosting the open house, that agent represents the builder of the home. They work for the builder and have fiduciary duties to work in the builder’s best interest to make the sale of the model home….Even if it is overpriced.

Again, thank goodness for that little voice; that pull in the gut. No contracts had been signed with this builder.

I explained that the USDA program was available in several areas, including some that would be a quicker commute to work for the buyer than the home in Lindstrom. After I did my MLS search, I found several well priced homes that would qualify for the USDA zero down program. In fact one almost brand new home that had gone back to the bank 8 miles closer in with 4BR/4BA that was almost $60K less than the builder’s model. There were almost 20 homes that I sent over to this first time buyer this morning that I felt were a significantly better value than the home they were looking at with the builder.
My exact words were that had he bought this new home at full price it would have been like paying sticker price for a brand new car and discovering that as soon as you drove off the lot, the value dropped. Previously owned homes in this area are selling for significantly lower prices per finished square foot than this home.
My past client's friend is now my new client and he is very excited with all the housing options he now knows he has. He has reviewed the listings online and determine a half dozen that seem to be a good value for a first home. I, as his buyer’s representative, will show these homes over this weekend. Thanks to that little voice, that uneasy feeling, this is one first time buyer who won’t be overpaying for a home in this amazing buyer's market!

Copyright 2009 Teri Eckholm http://www.terieckholm.com/