Stephanie's Blog

head_left_image

100% Financing, Zero down, at 1% Interest!

Yup, it still exists. In fact, 1/3 of my sales last year were through this government loan option.  You can't get it through a lender, which is why so many people aren't using it. 

USDA Direct Rural Development VS. USDA Guarenteed Rural Developement are both great loan programs to buyers with limited income, but only the Direct option offers as low as 1% interest to those who qualify.

How do you know if you qualify for 100% financing at 1% interest?

OR

How can you see if your buyer qualifies for this simple-to-work-with loan?

Each state has one or more main offices where you can call in to request an application.  The application is lengthy and no one will get an approval over the phone. They take 1-2 weeks to review the application and, in somes cases, will give you a verbal "OK" to begin shopping within a certain price range. Any offer you make before receiving a certificate of approval (2-4 weeks or so) must be subject to receiving this certificate of approval.  All of my buyers had a house under contract before receiving theres.

Agents, because I have handled so many transactions with Direct RD buyers, I know the process is simple. If it is your first time it's ok to be scared of tackling a new process.  When you're familiar with a certain loan officer and the more common loan products out there it's easy to be intimidated by this. But don't be. I'd recommend you contact the USDA office to find out when their next homebuying seminar will be and attend it. Learning about this could bring you more deals per year.

I had a client who didn't qualify high enough to find a home during the 6 months she spent searching with another agent.  She came to me and I immediately discovered she'd be an ideal candidate for the Direct RD. It took us less than 3 months to find a home and close, allowing her to buy a $190Ks priced home and keep a low mortgage of around $1000/month (PITI).

Of course, there are some things to consider with a subsidized loan and those are things you or your buyer will learn during the required homebuying seminar.

The next seminar in Keene, NH will be offered through Cheshire Housing Trust on Novembr 6-7. I'll be there speaking from a REALTOR's perspective.  Typically there are about 15-18 potential buyers in the seminar and I often get 2-3 calls from these buyers to begin the process of looking for a home.

Yes, 100% Financing, Zero down, at 1% Interest still does exist!

Comment balloon 0 commentsStephanie Jacques • September 08 2010 12:25PM
100% Financing, Zero down, at 1% Interest!
share
Yup, it still exists. In fact, 1/3 of my sales last year were through this government loan option. You can't get it through a lender, which is why so many people aren't using it. USDA Direct Rural Development VS. USDA Guarenteed Rural… more
Media Available for Pricing a Home and Investing in College Student…
share
Pricing Your Home to Sell was an outstanding DVD I purchased years ago to help my sellers and I have the sometimes difficult conversation around pricing their home. I'd either leave the DVD with them to watch, or refer to it as I worked on… more
Representing Women Who Buy Real Estate
share
During the past couple of years I've noticed an increase in my business representing single women who buy a home on their own These women are brave and strong, dedicated to taking control of their lives and making it work for them. They take the… more
Cheshire County, NH- June Real Estate Sales Stats
share
This year's real estate sales statistics are hard to compare to those from 2009. With the tax incentives offered to home buyers, the number of closed transactions in the Cheshire County, NH region increased for the month of June. Below are… more
Back to blogs like a frog on a log
share
I haven't written a blog in months. I've been partially distracted, partially re-prioritizing my career agenda and partially plain ole' busy! My client load has been very buyer heavy this year as I wallow through the loan options… more
Real Estate Wintertime
share
Traditionally, my real estate business takes a bit of a shift during the winter months when some sellers decide to take their homes off the market, while only the most serious buyers are shopping for real estate. Come February, March- early spring,… more
Social Media Vacation
share
Contrary to what you may think, no I did not take a vacation to attend more social media workshops… I took a vacation from social media! Sometimes to see the value of something, I might remove myself from it to reassess how I wish to utilize it. … more
Keene, NH Area Open Houses, BHG The Masiello Group, January 16-17,…
share
Upcoming Open Houses for Better Homes and Gardens The Masiello Group Keene office are as follow: 1/16/2010 39 Prescott Street, Keene- 11:00-12:30 26 Red Oak Drive, Keene- 12:00-1:30 17 Union Street, Keene- 10:00-11:30… more
I WILL NOT Make the Meatballs
share
There comes a time when a working mom has to sit back and take a good hard look at her values for herself professionally, personally and for her family. This week has become my moment. It's a hard earned moment, one that one comes during times when… more
5 Steps to Getting the Price RIGHT, without Losing Thousands of…
share
"Help! I need to sell and my home's not selling! " Often I hear some variation of this phrase though the "! " is removed. It's usually followed by a distressed look and a tone of "learned helplessness". I'm not putting… more