Rural Housing 100% Financing Program
Yes, 100% financing still exists, and it is all around the Whatcom County area!
Sometimes having a steady income paired with a good credit score just is not enough to qualify for a conventional loan at a commercial lending institution. The USDA allows borrowers 100% financing and guarantees the loan in rural areas. Now, you may think these loans are expressly for farms, or large plantation style homes. Such is not the case! Often, the qualifying homes are located in residential developments, only just outside the city limits. Currently in Whatcom County, the homes that would qualify under the Rural housing guidelines include much of North County, Ferndale, Sudden Valley, and some areas of Toad Lake. Check out the Whatcom County Map and see the area limits around Bellingham, WA.
Simple. The USDA encourages home-ownership, and their loans may be used not only for purchasing homes but also for repairs and renovations. The loans may be made on new or existing homes, and there are no restrictions to the size or design of the property being financed.
Loans may be made up to 100%, and in some cases 102% (if the guarantee fee is included in the loan). Mortgages are at a 30-year fixed rate (of current market interest rates) with no required downpayment.
The maximum annual income limits may be up to 115% of the median moderate annual income established for Whatcom County. These limits are based on household size.
Although stellar credit is not mandatory, it must be decent. The program emphasizes your income to debt ratio.
Official Eligibility Requirements: Applicants for loans may have an income of up to 115% of the median income for the area. Area income limits for this program are here. Families be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories.
Interested in 100% Financing? Apply online and get started toward owning your own home!
Any home at any price can qualify, except in the case of manufactured homes. Those homes may only be brand new. Again, view the Rural Map to learn more. The official description of the homes available in the program:
"Under the Section 502 program, housing must be modest in size, design, and cost. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. New Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards. Existing manufactured housing will not be guaranteed unless it is already financed with an HCFP direct or guaranteed loan or it is Real Estate Owned (REO) formerly secured by an HCFP".
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