Mark W. was pre-approved for a home purchase using VA, zero down payment financing. He found a home he wanted to make an offer on, but based on his offer price, the seller wouldn’t pay his closing costs or the required seller costs for a VA loan. Without the seller’s assistance, Andrew could not proceed with the purchase. Solution: The USDA 100% financing, home loan program.
Not only did Mark not need a down payment, but the appraisal came in above the sales price, allowing him to finance his closing costs into the loan at no cost to the seller. Andrew got his home, the seller netted more, and the USDA home loan program saved the day!
In most situations, sellers are more likely to accept offers where they do not have to pay closing costs for the buyer. If you live in an eligible area, and you are having difficulty finding a seller who will pay your closing costs, the USDA home loan might be the solution to an accepted offer.
Baxter Scruggs is a mortgage banker specializing in USDA loans in California, NMLS #156370. He can be reached at firstname.lastname@example.org, or at 760-497-7705, or toll-free at 877-347-0004, ext. 226. Licensed by the California Department of Business Oversight under the California Residential Mortgage Lending Act. The blog postings on this site represent the positions, strategies or opinions of the author and do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Terms and conditions apply, all loans subject to underwriter approval. Subject to change without notice. Guild Mortgage Company NMLS #3274