Best Deal in Town

We just closed a deal this week where the buyer bought a $200,000 priced home with only $300 out of pocket and got a 30 year fixed rate at 3.25%. How in the world was that possible???

He got a USDA loan. I mentioned in an update a couple of weeks ago how USDA has expanded their lending territory from a geographical standpoint – including all of Wilson county and now even including small sections of Davidson county that boarder outlying counties. While I realize that this program only applies to people wanting to buy in these areas, and having income that fits within the household limit (which for most of the counties around middle TN is $77,200 per year), it is a program that you should definitely be familiar with.

In the case referenced above, my buyer’s agent was able to negotiate a contract where the seller paid the buyer’s closing costs. USDA allows the buyer to obtain 100% financing, so that combination created the ability to get our client into the property for virtually no money out of pocket. The monthly fee that USDA charges for “mortgage insurance” (they call it a guarantee fee) is less than 40% of what FHA charges and the rates are fantastic.

Click the link below to learn more about income eligibility and property eligibility. There might be an opportunity here for a client that could surprise you.

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do