Expand your horizon with the USDA Rural Housing Renovation Loan Program! This loan is designed to allow you to purchase and renovate eligible homes under the USDA program. Just because the name contains “rural” don’t be fooled into thinking you will need to move to some remote countryside. Many semi-rural properties located just outside of your city limit might qualify. Since this is one of the few 100% financing program available these days you should definitely check it out!
Below are some of the basic guidelines but I always encourage you to contact my office to learn more about this and all of the other great Renovation loan options.
USDA Loan Benefits Include:
- 100% financing for first time and repeat homebuyers
- Fixed rate mortgage loan
- No maximum loan amount
- 620 minimum FICO with relaxed underwriting guidelines
- Seller may contribute up to 6% towards closing costs – based on purchase price of home
- Ability to finance repairs – the lesser of 10% of the appraised value or $10,000
- Appraisal is ordered based on “after improved value”
- Repairs begin after closing so there is no hardship or delay of funds for the seller
What to Know About the Renovation Piece:
- Just about any work is allowed as long as the max repair amount isn’t exceeded: foundation repair, roof repair, painting, new flooring, cosmetic updating, HVAC repair, etc.
- Work must be done by a General Contractor
- No funds are released at closing however we will be happy to issue a draw once the project commences
- Draws, contractor approval and the escrow account are all done and held in house so there are no third parties involved – makes for a smooth closing as well as a smooth project completion
The above points just represent some of the great features to this loan. Even with the renovation piece closing still occurs in as little as 30-45 days!! If you don’t need renovation but still wish to use the USDA loan for 100% financing I can help with that too. Apply today or simply call my office for more information.