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USDA Home Loans - Rehab Funds

3006 Views 0 Replies 1 Participant Last post by  renet
Contractors have a marketing opportunity by meeting local lenders and loan officers who fund the USDA Rural Guaranteed Home Loans. Also referred to as USDA Home Loans. These loans allow for some rehab funds to be held in escrow for a contractor to make repairs on the buyers home. There are guidelines as to how much funds and the type of repairs but it is worth checking into. Let the loan agent know you are a contractor and would like to assist their clients with repair needs upon close of escrow.

Also, keep in mind the fha 203k loan that also is used to rehab homes. One version is up to $35K and the regular version goes higher. Check with the lender about the guidelines. Bottom line: solicit your local USDA Lenders and FHA lenders for business.

You might wonder how common the USDA Home Loan program is. We are in Battle Ground, Washington which is right next to Vancouver, Washington. Look it up on rmls(dot)com or realtor(dot)com and you will see the homes are regular nice homes in a wonderful community. Scratch any idea that this loan is only for some rural town where all the buildings are ready to fall over. Check the usda website for area guidelines and you will be quite surprised how many towns (homes) qualify for the USDA Home Loan. As you can see with a little research Clark County USDA Loans are very popular and make for quite an opportunity for local contractors.
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