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Get Your Buyer Into a Home with No Money Down - And Maybe No Money At All!

With 102% financing & seller help, your buyer can be in a home w/$0 cash.


After the mortgage crisis in 2008 & 2009, lenders have become much more cautious, and it's a lot harder for a buyer to get financing, especially with lower incomes or little money for a down payment. But, there is one program that is wonderful for those in rural areas, as classified by the USDA (U.S. Department of Agriculture).

Their rural home loan guarantee program has upper income caps, so check with a mortgage resource to see what they are in your area. There are also some charts on the USDA site here. I just closed a loan for a teacher on a $218,000 purchase, and she got in with no down payment and even got her $500 earnest money deposit back at closing.

What we did was to negotiate in the purchase that the seller would pay 3% toward the buyer's closing costs. With the 102% financing, and a good appraisal of course, she got the entire purchase financed, and at a great rate, only 1/8 percent over the best quoted 30 year rate at the time.

Sometimes the difference between a goose egg and a commission is just finding a way for your buyer to get what they want with what they have to spend. Check out the USDA rural loan program for your buyers who qualify.

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