Great Home Financing Opportunity!

  It's called a USDA Rural Development Guaranteed Mortgage. This a government guaranteed and funded loan similar to an FHA loan, except the USDA loan is limited to certain rural areas, has income limits, and the qualifying ratios are a bit more stringent. This is a 100% loan to value(100% LTV) program that is geared to help moderate income families purchase a home. This offers an excellent opportunity to those who qualify.
  The USDA Office of Rural development is an agency with the United States Department of Agriculture which runs programs intended to improve the economy and quality of life in rural America.  Their financial programs support such essential public facilities and services as water and sewer systems, housing, health clinics, emergency service facilities and electric and telephone service. Click the link above for more information.
  With prices and interest rates at such reasonable levels, home ownership is more obtainable than it has been in a long time. This is just one more way to make that dream a reality. Some of the towns that are eligible in the Bucks-Mont area are Souderton, Perkasie, Harleysville, Sellersville, and Quakertown. To check the eligibility of an exact address, visit the USDA link at the very top of this page.
  The major benefits of this loan program are:

• 100% financing (3.5% funding fee required, can come from gift, seller, or be added to mortgage)
• Zero down payment and there is no minimum buyer contribution required.
• Income limit for family of 1-4 persons is $90,050 and family of 5-8 persons is $118,850
• No limit on Seller concessions
• No Private Mortgage Insurance(PMI) required
• No reserves required
• Low 30 Yr. Fixed rates (similar to FHA rates) - This is NOT a sub prime mortgage
• Flexible Credit guidelines

Here is an example of a loan comparison between a typical FHA mortgage and a USDA mortgage;
House Price of $230,000 with annual taxes of $3400 and Seller concession of $10,000.
(USDA requires a 3.5% funding fee which in this case we will add it to the amount being mortgaged)

                               USDA                                                              FHA
                          $238,050 mortgage                                    $221,950 mortgage
                             No Down Pmt.                                            $8,050 down pmt

                        $1206.16 Principal & Interest                     $1124.59 Principal & Interest
                        $  283.33 Taxes                                         $  283.33 Taxes
                        $    50.00 Insurance                                    $   50.00  Insurance
                        $      0.00 PMI                                            $ 100.00 PMI
                        $1539.49 total monthly pmt                        $1557.92 Total monthly pmt

As you can see with NO MONEY OUT OF POCKET and NO PMI, the USDA monthly pmt is actually less than the FHA loan.

  The information above is for your information and I am not promoting that someone should necessarily finance 100%. Personally, I believe it is best to try to have at least 3.5% down of your own money rather than finance 100%, however with house prices at near rock bottom it is at less risky than it was 5 years ago when prices were peaking.
  I hope you find this information helpful and feel free to contact me if you need any help.

  To view all my listings in the Bucks-Mont area, please visit: http://www.patgarisrealtor.com/