What kind of financing options are available for Pre-hud homes in very remote rural areas like Sweet Home?

Asked by no at no email, 97462 Sun May 17, 2009

,Oregon other then cash of 50% down ? We recently sold our home in Portland mostly due to Countrywide and more unfort. did not get anything out of it after 25 yrs but $54.70 and then a check for $20. from escrow after that so we have only abouit 5k to put down, Our credit is not great but not too damaged, income is under 45k but stable. We are looking for a small farm to homesead on and build our own strawbale home on site so we do not need much of a house, just space, infrastructure and storage.

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Chelsea Greg…, , Linn County, OR
Thu May 10, 2012
Hi Phil,

There is a USDA program, which requires no downpayment. Depending on where you get your loan, some lenders are more leanient on credit scores. A local lender has been able to get some loans to go through with not such great credit. The only thing about the USDA loan is that their standards are a bit more strict than FHA or conventional financing. FHA is a similar program to USDA, although there is a downpayment amount of 3.5% and there is mortgage insurance but they will allow for manufactured homes, shops, barns, etc. There are also some options for a lower downpayment conventional financing as well. I just had a client approved for a conventional loan with only 3% down, although credit score has to be higher than that of an FHA or USDA loan. These are some options. If you would like some contact information for a lender in the area and some homes currently available I would be happy to help you.

Best Regards,

Chelsea Gregory
Broker | Buyers Specialist
Sherri Gregory Real Estate Team

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Allison James…, Agent, Portland, OR
Sun May 17, 2009
Hi Phil - looks like Sweet Home qualifies for the USDA Rural Home Loan program. It's a great loan that doesn't require a down payment and has no mortgage insurance. There is a one time upfront fee of 2% of the purchase price - but they roll it into the loan and allow you to have a loan amount of up to 102% of the appraised value (with the 2% being the fee). It's a great loan and rates are awesome. Minimum credit score needs to be around 660, you've got to have 2 months PITI reserves in the bank, and the seller can contribute up to 6% of the purchase price towards your closing costs. With your 5K in the bank - you should be the requirement for the reserves.

I sounds like it would be worth you checking into and may get you into a home easier than you think. I'm here in the Portland area - but can do loans anywhere in the State. If you don't have a loan officer you're working with to check into this for you - I'd be happy to help.

Kelly Gebler

Real Estate Broker & Loan Officer
Keller Williams Realty & Sunset Mortgage Co.
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