What program am I talking about? Could there still be a 100% lending program? The answer is a resounding YES and it's called the "Rural Development" loan backed by the United States Department of Agriculture or (USDA). It's currently the only 100% financing that can be achieved in today's lending environment. This loan has it all; 100% financing, NO PMI (Private Mortgage Insurance) and an interest rate of 6.5% FIXED for 30 years (today @ 12:00PM CST)! I have provided financing via this venue for quite a long time and I can tell you that this program is simply amazing. You can actually escrow for "improvements" should the home you are looking at be in need of siding, furnace, roof, flooring etc. I know you are saying this is too good to be true or what's the catch? Well there are two areas of qualification that must be met. First, the home must be located in an "approved" USDA area (i.e. Rocheport, Ashland, Boonville, Fayette, Harrisburg, Fulton, Auxvasse, Mexico, Montgomery City, Hallsville, Centralia, Moberly and any other area that's not Columbia or Jefferson City). Second, there are "maximum" income limitations, for instance for a single person with no kids the maximum amount of annual income he/she could make in Boone County Missouri is $49,900. Now with that being stated I have had several instances where the borrower has made over $76K a year, however they had dependents to help "off-set" the income limitations. For instance, USDA will allow the borrower to deduct annual daycare expenses from their total income thus reducing the amount of "eligible" income. For instance say an individual made $60K a year however had 3 dependents for which they paid $250 a week and was not married. Their "eligible" income for qualifying purposes would be $47K ($60K-$13K) hence this person would qualify under USDA guidelines. Each county in every state has a "maximum" income guideline and the "eligibility" requirement and determined by marital status, both applicants current employment situation and how many, if any dependents they have.
I have outlined below some of the "key" highlights concerning this great program. Missouri ranked 3rd in the nation in Guaranteed USDA financing! Should you have any questions or simply want to know if you are eligible simply contact a representative of Professional Mortgage Group for the answer.
- No Down Payment
- No Monthly Mortgage Insurance Required
- No Cash Reserves Required
- No Minimum Credit Score
- No Maximum Loan Amount or Purchase Price Limit
- No Limitation on source of closing costs
- Repairs and Closing Costs can be financed into the loan
- Seller Concessions Allowed
- Affordable Fixed Interest Rate with 30 Year Term
- Premium Pricing Available
- Prompt Review by Rural Development within 2 business days
- Past credit issues OK (Bankruptcy and Foreclosure)
- Acreage OK
- Modular Homes OK
Brought to you by Professional Mortgage Group, Inc.
Your Columbia Missouri Mortgage Broker
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