Monday, November 3, 2008

USDA Rural Housing Loans - 100% Financing

For properties in places outside of the urban areas of Colorado, the USDA Rural Development (or Guaranteed Rural Housing) loan program allows borrowers to purchase a home with no money down. Here are some of the highlights:

-- 100% financing
-- Not limited to first-time homebuyers
-- No monthly mortgage insurance
-- The seller can pay up to 6% for closing costs and prepaids
-- If the seller won't pay the closing costs, then a gift to cover the closing costs is acceptable from a disinterested third party (a friend of the buyer, for example)
-- Some repairs can be financed into the loan

All counties in Colorado except Denver County are eligible to use this program. However, Adams, Arapahoe, Boulder, Douglas, El Paso, Jefferson, Larimer, Mesa, Pueblo, and Weld have ineligible areas, so any properties in those counties would need to be checked for program compliance.

Here are some areas around Denver where these loans are available: Brighton, Bennett, Firestone, Larkspur, Dacono, Frederick, Lochbuie, Ft. Lupton. There are hundreds of other towns in the state that are eligible as well. Please give us a call with your property address and we can let you know if the property is eligible for the program. There are some income limitations, but they are not so low that most buyers will be excluded ($66,100 for a 2-person family in the Denver-Aurora area, $70,700 for a 2-person family in the Boulder area, etc.).

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