Although it is not a new program, the USDA Home loan in Texas has been identified as one of the few remaining ways to obtain 100%financing.
Here is where our many rural areas in Texas work to our advantage: for places and open country consisting of a population of less than 10,000, USDA may be an option for single family housing financing. This means that if you are looking to purchase or refinance in an area of 10,000 or less, you may be able to have less equity or much less in down payment than required through conventional or even FHA home loans.
Another good feature of the USDA loan is that, provided that there is sufficient appraised value, there is no limit to the amount of seller contribution for closing fees creating a possible scenario of literally no money needed from the home buyer at closing for down payment or closing fees. There is also no limit to the amount of gift funds (from blood relatives) to the purchaser for any applicable financing costs or down payment for the loan.
Aside from the zero down payment, the best benefit is that there is no mortgage insurance to pay. This means that your loan is 90% guaranteed by USDA and you will not to pay additional money monthly to the lender for financing over 80% of the purchase price.
This program has very competitive rates and fees to assist the first time home buyer.
The USDA Rural Development Program is a shining star for many Texas home buyers. To find out more information or to apply for this loan please call Leesa Sandoval at 972-725-9110 or visit www.leesasandoval.com.