FHA & USDA - great loan options for home buyersThursday, September 10, 2009

The FHA and USDA are not new, and the loans they offer have been around for years but with the lack of lending options in the private sector - these government loan options have gained an enormous amount of popularity ... and for good reason.

Down payment is the major hurdle for most home buyers, especially first time home buyers. FHA allows for a 3.5% down payment, of which the entire down payment can be gifted from a family member. Coupled with the $8,000 first time buyer tax credit (which you can apply to your 2008 return and obtain this year) creates an amazing buying opportunity with the low mortgage rates available and low home prices. In addition, the seller is allowed to contribute credits toward closing costs in the amount of 6% of the sales price!

The USDA loan program allows 100% financing and no mortgage insurance! This is obviously an incredible loan, however it is limited to certain rural areas (Wilsonville, Sherwood, Newberg, etc.) and income limits. Give me a call to determine your eligibility for this loan. just like the FHA loan program, the seller can credit funds toward the closing costs to allow for a $0 out-of-pocket purchase.

The $8k tax credit is only valid on purchases that are closed on or before December 1st, 2009 - so act fast.

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