USDA Rural Development loans

USDA Rural Development Loans

For those who may be working in rural areas, the United State Department of Agriculture has a home ownership program for low income home buyers. They will loan in cities that are near metropolitan areas but the city itself must less than twenty thousand in population. The loan maximum varies from area to area but does cover properties over the median price range for the area. They are geared primarily for first time and low income buyers and offer loans up to 103% of the value of the property so buyers have no out-of-pocket expenses to acquire the property. The loans won’t help the investor in acquisition but can be a great tool to get qualified retail buyers for properties the investor has rehabbed. In my area, those are the most common buyers in the market today.
I recently got a property under contract to a USDA guaranteed buyer. They offered more than the asking price so long as I would pay all the closing costs. The costs on that loan came to just over six percent of the purchase price. Check with your local lenders to see find certified lenders for USDA loans so you can refer potential buyers to them.