The trend for 100% home loans has all but gone away for the average person. The VA still offers 100% loan for veterans but for the non veteran few options still exist. One of the little known programs offered by the Federal Government is the USDA home loan.
A buyer can still get 100% home loan in the areas outside of the city. In the MidSouth area the counties Fayette, Desoto (part), and Tipton are eligible. In order to determine if a home you have your eye on is in the current area, you can search the address on this site.
According to Peggy Bolding at Community Mortgage the other specifics for this loan are:
- 100% financed loan
- 30 year loan term
- 640 minimum credit score
- Rural properties only
- Must be located in a rural area determined by the USDA eligibility website above
Household Income limits:
- Greater Memphis Area: 1 to 4 persons $75,650; 5 to 8 persons $99,850
- Single family homes only
- Primary residency only
- Upfront guarantee fee 1% (can be financed into the loan) / Annual 0.35%
- Up to 6% seller paid closing costs
- Gifts funds are acceptable for closing costs
This means if the seller will pay the closing costs that a buyer can get into these homes for less than $1000!
If you would like to see if you qualify, click here for pre-approval.
Have additional questions?
Ask me in the comments or contact me here.
I look forward to helping you get into your new home!