Tag Archives: real estate loans

An unsexy post about mortgage loans

 

Improvements to an old loan program available in Washington and Montana, and the addition of a new loan program available in Montana, will make buying a home easier – and create a new pool of buyers for many home sellers beginning in October.

First, the old:

The USDA loan program offers 100% loan financing for homes located in designated rural areas. In Missoula, that appears to be anything outside of the city limits. In Montana, East Missoula, for instance – minutes from downtown – is a qualifying area. In the Puget Sound area,  homes in North Bend, Arlington, or Bainbridge Island qualify.   The USDA says 97% of US land mass is USDA loan qualifying.

*There’s an upfront fee for a 100% USDA loan, and it’s being reduced from 2.75% to 1% (of the purchase price). That’s a savings of $5250 on a $300,000 loan.

*There is an annual fee of .35% of the unpaid principal balance per year, down from .50%. That’s a savings of about $30 per month on a $250K loan balance.

The new USDA loan will now be less expensive than a comparable FHA loan which requires a minimum 3.5% down payment, upfront fee of 1.75% and annual fee of .85%.

Find USDA eligible areas with this map:

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfpd

Learn more about USDA loans:

http://themortgagereports.com/14969/usda-loans-home-mortgage

Next up is a gift program available in Montana and Idaho, which does not require repayment and is available on properties located anywhere in those states. So you can use this one in Missoula city limits.

If you qualify for a FHA, VA, USDA or HUD Section 184 loan and meet the income requirements, you may be eligible for the HomeNow Down Payment Gift Program. Homes must be occupied by the buyer as a principal residence within 60 days of purchase and for at least two years afterward. This is not a first time buyer program. If you’ve owned before, you can be eligible. The gift of $3500 or $5000 may be used for down payment or to pay closing costs.

More on HomeNow here:

http://mtcdc.org/down-payment/homenow

For more info on how these loan programs can help you with your next home purchase, and to connect with a lender who works with them, message me on this page or call me at 406-282-2976.

Here is a picture of George Clooney to make up for being boring.clooney

George says, search for Missoula homes here:

https://www.era.com/ERA-Lambros-Real-Estate-992c/Mike-Stussy-338629a