The Loan Lady Blog

Very few people know about one of the best loan programs available today.  It is the USDA program for rural housing.  This loan program offers 100% financing with no monthly mortgage insurance.  There is a one time guarantee fee of 2% of the purchase price that can be financed with the loan, resulting in 102% financing.

The program is designed to stimulate growth and improve housing quality in rural areas, but many of the eligible areas are not what most people would consider rural.

Other features of the loan include no first time home buyer requirement, no reserve requirement, no minimum credit requirement (although a score of at least 620 is recommended), and no minimum buyer contribution.  There are maximum income limits.

To find out more about this program, check if your income qualifies, and determine if a specific property address is eligible, go to:  http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do  or contact me for an appointment.

Energy Efficient Mortgages (EEM) have not received much attention but they are available to home buyers who use FHA financing.  The program allows buyers to add the cost of energy-saving improvements to their FHA loan.  This addition to the loan does not affect a borrowers qualifying debt-to-income ratios or the loan-to-value of the property.

During the contract period on your home purchase, you must schedule an energy auditor who will evaluate the house's energy usage and potential energy efficient upgrades that qualify under the EEM program.  The inspection costs approximately  $350 and can be paid out of escrow at closing.

The auditor will provide a report that outlines potential energy savings with the upgrades.  You can obtain up to 5% of the purchase price for energy improvements, but it is limited to the amount predicted for the monthly savings on your utility bill. 

You can use the funds to:

This program will improve your home value, make your home more comfortable, reduce your energy usage which helps our environment and lower your monthly energy costs.  It's a great way to buy a home.