USDA Rural Development Mortgage Guidelines

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For Sale By Owner Advantage

If you are a for sale by owner you can take the benefits of this program and center it around selling your home.  There are many people that would love to purchase your home but they think they may not qualify for a loan, especially if they have little money for a down payment or they have a few glitches on their credit.

The fact that this mortgage allows for unlimited seller concessions, and that the LTV is based on the APPRAISED value and not the purchase price gives you the advantage.  You could put together an irresistible offer to put in your advertising if you can sit down with your calculator for a few minutes.  Of course you should probably get a broker to work with you so you have somewhere to send your willing buyer to get the loan.

Consider this:

Why not offer to pay all of the buyers closing cost instead of reducing the sales price. As an example, you have a home on the market for $200,000 and there has been little or no interest. The first thing that comes to mind is the home is over priced and you decide to reduce the sales price 10% or in this case to $180,000.

A better option would be to offer to pay all of buyer's closing cost and keep the price at $200,000. Doing it this way would net you $8000 more and maintain the sales prices in the neighborhood. Secondly, if you reduce the sales price to $180,000 you may have to pay closing cost reducing your net even more...

Use the 6% concessions as a tool to get your sales price or at least close to it.

If the property is not in a rural area this loan will not help.  However the same principles apply to a FHA home loan or a VA Loan.  Visit those sites to understand the guidelines.

 

 Copyright 2008 | Kale Enterprise Corp. | Cartersville, Georgia, 30120

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