100% Financing is Still Available in Select Areas: In the past few months we have written a lot about FHA loans and the benefits of this "in vogue" mortgage product. We have also talked about the tightening of the industry, especially in the Freddie/ Fannie Conventional world.

So if I told you that there was a Conventional loan that had:

o NO down payment

o Low monthly PMI

o The seller is allowed to pay all reasonable closing cost and pre-paid items, and

o NO hit to the rate for the zero doww

o NOT a first time home buyer program (although First Time Homebuyer Training may be required) and

o NO reserves needed; what would you think?

If I told you that this particular mortgage also has a unique feature that offers you the ability to roll all reasonable closing cost and pre-paid items into the mortgage without the seller actually "paying" the cost (as long as the house appraises for the increased loan amount); what would you think? How useful would that be in negotiations of contracts, especially when your buyer is purchasing a foreclosed property? How much would it help when you're listing a home to be able to offer 100% financing again?

There IS a Conventional loan that has these great options and it is the USDA loan (yes, like the beef). It is area-specific and income-limited, so it is important that you work with a lender who is very knowledgeable with the loan guidelines!

Cities that are eligible for USDA (List not exclusive...contact me for more information):

Annandale, Becker, Belle Plaine, Big Lake, Buffalo, Cambridge, Cannon Falls, Chisago City, Clear Lake, Clearwater, Cologne, Delano, Dundas, Elko, Hampton, Heidleberg, Isanti, Lester Prairie, Lindstrom, Lonsdale, Mayer, Maple Lake, Miesville, Montgomery, Monticello, Montrose, New Germany, New Market, New Prague, New Trier, North Branch, Northfield, Norwood, Princeton, Randolph, Red Wing, Stacy, Waconia, Watertown, Waverly, Webster, Welch, Young America, Zimmerman.

There are only 4 counties in the 11-county metro area that are completely ineligible: Hennepin, Ramsey, Anoka and Washington. That leaves a whole lot of state to work with!

I'd be happy to take 15-20 minutes with you (and even a few of your colleagues) to go over this fabulous program in more detail if you would be interested.