Is a USDA Loan Right For You?

If you're thinking of buying your first home, but do not have money for a down payment, you might want to consider a USDA loan.  

With a USDA loan, you don't put anything down, it is 100% financed.  Before you get too excited and think "Wahoo!  I don't need any money!" - you will still need earnest money, money for closing costs & for any inspections.  In a buyer's market you can often get the seller to pay your closing costs.  In our current market, a seller's market, it's still possible that a seller might pay your closing costs, but it's not as likely.

A USDS loan takes longer to get, so the closing timeframe on a house is going to be longer, at least 60 days, often more.  There are certain requirements like all the exposed wood must be painted.  They don't care if the house is polka dotted, it just can't have exposed, unpainted wood siding.  You can't get a USDA loan on a house with any out buildings, like a shop, or things like a pool.

Besides the fact that this type of loan is finicky with the condition of the house (like no plumbing, electrical or roof issues), it also is only available in certain areas. Basically think rural, outlying towns.  You'll want to talk to your lender, but in this area some of the approved towns for USDA loans are Forest Grove, Cornelius and North Plains.

As with any loans, there are requirements.  But don't think that this is a bad option.  The fact of the matter is, it is an option.  When you're thinking about the current low interest rates and thinking that now is the time to buy before home prices go any higher, this may just be the option for you.  You could buy a home and start building your own home equity, instead of continuing to rent and paying off someone else's mortgage.  Talk to a lender today and if you don't have one, give me a call and I can get you connected with a lender that you can trust.