USDA Home Loans and areas in Snohomish County

Some Details about the USDA Home Loan Program in Washington State and no I’m not talking about steak!
– Zero Down, no down payment required
– No monthly private mortgage insurance (PMI)
– Very competitive 30-year fixed rates
– 640 minimum credit score required
– Flexible underwriting guidelines (see me for specific questions… employment, credit, debt-to-income..)
– Up to 6% seller contribution
– Can use to buy new construction
– Can use to finance a REO or short sale
Snohomish County USDA Loan Eligibility Map
If you wonder where, you can buy a home with a rural development (USDA) loan here’s a map. The area inside the outlined area is considered urban and is NOT eligible for rural development housing programs.
Hence, homes in Snohomish county located outside of the area outlined in the map should be geographically eligible for a USDA loan (see the official description of borders below).

The ineligible area of Snohomish County Washington includes all of the area South of 140th Street NW, West to Interstate 5. South on Interstate 5 to the water in Possession Sound at Port Gardner. Following the coastline South to the King County Line, East long the King County line to State Route 9. North on State Route 9 to 140th Street NW.
Source: WA INSTRUCTION HB-1-3550, Exhibit L (Snohomish County)
Note: Word has it that USDA is possibly changing some of these guidelines in the fall. What I have heard is that mortgage insurance might be coming into this type of loan. This is not validated yet but with FHA climbing from 3% down to 3.5% last fall it might be true. This can affect a purchasers buying power! If you know of anyone thinking of buying with a USDA loan have them contact me so we can get them into a home now and save money.

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