The United States Department of Agriculture (USDA) has a wonderful program to help purchase homes, in rural areas that are not farms, with no money down. In fact, program guidelines include purchase of less than 5 acres and no growing crops. Many of the eligible areas are within a reasonable commute to the Denver Metro area. It should be mentioned that 100% loans are not inherently dangerous to either the borrower or taxpayer. Currently VA loans, which have no required down payment, have the lowest default rate of all mortgage products.
The good news about this program is that in addition to stick built homes, modular and manufactured homes may qualify. The program is not limited to first time buyers, however, borrowers may not own any other real estate. Mortgage insurance is NOT required with this program. This program is for owner occupants to purchase a home, and is not available to investors or existing homeowners for a refinance. Buyers are subject to income limitations. This means that a buyer could make too much money to be eligible. While it seems insane that a borrower could make to much money when applying for a loan, the logic is that this program is supposed to help people who do not have other options.
The USDA’s website at www.rurdev.usa.gov contains a wealth of information about income limits and property eligibility. Just enter the property address and it will tell you if the property is acceptable. As always, I appreciate your comments and questions.
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