The housing market is growing, especially here in Northeast Ohio. In 2017, home sales across the region rose 1.6% with annual average sale prices increasing 6%. Sure, this is great news! But, the rise in sales has created a bit of a shortage in terms of available properties. Prospective homebuyers are now getting crafty with their tactics, including one of the best-kept secrets in the market today.
Introducing the USDA Rural Development New Construction loan. Sponsored by the U.S. Department of Agriculture, this construction-to-permanent mortgage option provides qualified homebuyers the chance to receive 100% financing with no cash down payment necessary on building a new single family home. This is accomplished through a one-time loan that encompasses the build, lot purchase and permanent mortgage funding, meaning you can focus all your time and energy to building your dream house without worrying about another loan qualification.
USDA Rural Development New Construction is unique in that if a home appraises for more than the purchase price, a borrower can roll additional costs (like future mortgage payments) into the loan amount. Since the loan is closed prior to breaking ground on a new home, there is no need for re-qualification or reappraisal, simplifying the construction and purchase process.
Even better, we’re the first in Ohio to offer this type of mortgage. The AmeriFirst Home Mortgage team have a long running professional relationship with the USDA, and it’s not just homebuyers who will benefit from this loan, as local builders and contractors should experience a rise in new development in some of our rural communities. Under the Guaranteed Loan program, USDA Rural Development New Construction insures (“guarantees”) loans made by private residential lenders such as AmeriFirst.
So, what’s the catch? You may be asking yourself the question. Well, there isn’t one. But, there are requirements. In order to be eligible for the USDA Rural Development New Construction loan, the desired property must fall within certain geographical areas, preferably outside the city limits of a major metropolitan center. Now wait, this doesn’t mean you have to live next door to the Little House on the Prairie. In fact, 97% of U.S. land is eligible for USDA financing, which represents 109 million people, or one-third of the U.S. population. Additional guidelines apply.
For more information about the USDA Rural Development New Construction mortgage loan, contact AmeriFirst Home Mortgage here or 330-965-1808.