Sarasota Real Estate Market News

USDA still offers no-downpayment mortgages

USDA still offers no-downpayment mortgages

WASHINGTON – Aug. 18, 2011 – Thanks to funding from federal programs to boost the housing market, the U.S. Department of Agriculture (USDA) still has $11.2 billion in its coffers earmarked for mortgage loans. The USDA’s Rural Development Service’s Section 502 loan is one of the few mortgage programs that requires no downpayment.

In earlier years, the program ran out of money by late summer, leaving homebuyers in limbo as they waited for the new budget year to begin. In Florida, most low-income and middle-income buyers qualify if they live in rural areas, smaller towns or some outlying suburbs to larger cities.

The program will change slightly after Oct. 1, when buyers will be required to pay a 0.3 percent premium for mortgage insurance monthly; however, the cost of upfront mortgage insurance will be reduced to 2 percent from its current 3.5 percent.

For more information, visit the USDA’s website.

© 2011 Florida Realtors®

Many single family properties  east of Interstate 75 (Lake Sarasota for example) qualify for this type of financing

August 20, 2011 - Posted by | Uncategorized

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