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SECTION 502 LOANS
The Rural Housing Loan provides 102% (based off appraised value) financing for borrowers that meet the income and credit guidelines, with NO mortgage insurance.
No out of pocket expenses necessary (102% of appraised value can be borrowed, closing costs and prepaids can be paid via gift, or seller contributions)
Sellers can contribute up to 6% of the sales price towards prepaid items, and closing costs, including rate buy downs.
Section 502 loans are primariyl used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.
Owner occupied only.
One loan to 102%, no mortgage insurance, and value is based of appraisal, not contact.
Borrower can only own one property.
Applicants for loans may have an income of up to 115% of the median income for the area, as defined below.
115% of Eagle/Summit median income;
1 person household=$61,900
2 person household=$70,700
3 person household=$79,550
4 person household=$88,400
30 year fixed rate is the only loan program available currently however it is below market rates
Max loan size $417,000
Call me for further details....970-376-1244
The average days on market (ADOM) continues to rise in Eagle Ranch, Eagle, Colorado. It is currently 220 days, which is quite high. This is a reflection of the current market in our area. What does this say about current market conditions? Well, first of all this is a reflection of the fact that many buyers are still trying to sell their properties for prices which are too high. Many still believe they will be able to fetch an offer that they may have seen two years ago. Some sellers are dropping prices moderately and hoping to recieve as high an offer as they see possible. The problem with "fishing" for these offers is that they are just no coming right now. It is imperative to price your property in the area where the buyers are currently "feeding". For instance, if you are fishing out of a boat, and all the fish are dwon deep, does it pay to fish in the most shallow part of the lake? Of course not, there's no fish there! So basically what I am saying is that in order to "catch" the buyers in this market sellers are going have to start lowering thier "bait", or price into the area where buyers are currently seeing value, which is well below what asking prices were a couple of years ago. If you need to sell, your property is going to have to be perceived as a much better value than everything else that is out there, so fi you are selling, be prepared to price accordingly.
