Notes from Charlotte County, Florida

For some, the only time they think of the United States Department of Agriculture (USDA) is when it's on the label when there are contemplating which pork chop to buy. But with all the changes going on in the more conventional FHA financing world, many loan originators (mostly in rural areas) are revisiting the USDA mortgage program which still offers $0 down and 100% financing options.

The USDA program was created back in the 1940’s to help farmers, but has gained traction this year with USDA guaranteed loans hitting the 120,000 mark in the first nine months of 2009, this is up from roughly 35,000 in all of 2007.

The USDA program offers, for very specific rural areas, 100% financing with no mortgage insurance for single family residential properties as well as, condominiums, and Plan Unit Developments (PUD). Manufactured housing is allowed if the unit if 12 months old or never and never has been occupied. The borrower’s income is limited to 115% of the US median income, adjusted to number of people in the household. There are no sale price restrictions, no declining markets issues, no cash reserve requirements, and the loans can be manually underwritten or go thru USDA’s Automated Underwriting System (GUS).

Current, the USDA program does require a minimum credit score of 620 - if the score is below 620, verification of rent will be required.

If you would like to talk with a mortgage loan professional to discuss the USDA Mortgage Loan Program, give the MLS Detectives a call.

MLS Detectives

RE/MAX Anchor Real Estate

Punta Gorda, Florida

(888) 207-2029

Info@MLSDetectives.com