EDITORS NOTE: Please check out this updated post (May 2011) on USDA financing for homes located in Washington State. Income limits and the guarantee fee have since changed since publishing this post.
USDA Rural Development loans offer financing of single family dwellings in rural areas to people who meet certain income limits. In King County, the current four-person household adjusted limit is $88,400 maximum income.
This program provides up to 100% financing with flexible underwriting guidelines. There is no mortgage insurance however, similar to a VA loan, there is an upfront fee of 2% of the loan amount (guarantee fee) that can be financed into the new mortgage. Mortgage rates are attractive considering the higher loan to value, no credit score price hits and no monthly mortgage insurance–I've added rates for USDA loans to my rate post that I do on Friday's here at Mortgage Porter.
To see if you and a potential property are eligible, click here.
If you're interested in a USDA loan on property located in Washington State, please contact me. Mortgage Master is an approved lender.