In the past few months I have written a lot about FHA loans and the benefits of this “in vogue” mortgage product. We have also talked about the tightening of the industry, especially in the Freddie/ Fannie Conventional world.

If I told you that there was a Conventional loan that had: NO down payment, NO monthly PMI, the seller is allowed to pay all reasonable closing cost and prepaids, and NO hit to the rate for the zero down, NOT a first time home buyer program and No reserves needed, what would you think? If I told you also that this particular mortgage also has a unique feature that all reasonable closing cost and prepaids can be rolled into the mortgage without the seller actually “paying” the cost (as long as the house appraises for the increased loan amount)? Think about how useful that would be in negotiations of contracts, especially when purchasing a foreclosed property.

There IS a Conventional loan that has these great options and it is the USDA loan (yes, like the beef). It is area-specific and income-limited, so it is important that you work with a lender who is very knowledgeable with the loan guidelines!

Feel Free to Contact for a List of Eligible Cities. 

Max Family Size/Household Income

If I can be of assistance to you with this great program, simply call us at 1.888.271.3437 x7 or email us at will@MyEquityPro.com . I know this product well! Let me know when we can be of assistance.

What’s the Beef…think USDA…and then call Your Mortgage Planner!

Great news!  A final rule has been published which creates a two-tiered income limit instead of the eight-tiered limits we are currently using.  The publication in the Federal Register is available if you wish to read up on it (contact me).  Please note, the rule will NOT become effective until January 20, 2009. When the rule takes effect, it should assist in qualifying more families for the program.  When the new income limits become available, I will let you know!!!. 

Quick Points

• No Down Payment to Qualified Borrowers
• No Monthly Mortgage Insurance

o   Seller can pay UNLIMITED toward closing costs and prepaids!

• $0 Move-In Possible for Qualified Borrowers
• No Cash Reserve Requirements
• Must Purchase in an Eligible Rural Area*

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