Zero Down Home Loans in Portland Oregon?
The government’s USDA loan has provided first-time homebuyers and zero down loan option for rural areas of major metropolitan cities such as Portland. But according to a new article in the Oregonian, some not-so-rural areas will remain eligible for government guaranteed, zero down payment home loans under the farm bill that was signed this week.
The US Department of Agriculture’s guaranteed home loan program was created to strengthen these suburban style communities with populations of less than 20,000. However, the program has been using census dating back to 1990 to determine which areas are eligible, with the Congress's permission. The farm bill passed this week will keep those definitions in place until the 2020 census.
This means now for 30 years parts of Portland's fastest-growing suburbs like Forest Grove, Wilsonville, Sherwood and others will have access to zero down financing for potential homes. It also expands the definition of population threshold of a rural community of 35,000.
So who is eligible?
This USDA program is open to home buyers who make up to 115% of the area's median income and who also lack adequate housing currently. This is just part of the bill however, this also includes crop insurance and food stamps.
Certain homes in specific suburban areas of Portland are eligible and must fall under specific guidelines. Derelict homes, distressed properties and certain foreclosures may not be eligible depending on how much work is needed to make them livable. The zero down home loans must provide very little risk to lenders so buying a home with a lot of work to be done and very little resale value may not be accepted.
These programs are excellent for first-time homebuyers, distressed borrowers, and those that prefer to live outside the Portland Metro area.
For more information on homes that qualify for the USDA zero down home loan give me a call today. We can discuss where you want live, your price range and if you're eligible.