I'm currently researching USDA loans online and just wondering if anyone has experience with these products?
Yes @Charles Burgess , I have used a USDA loan for a primary residence purchase. It was a great option for zero down, and I actually received about $500 at closing too.
Anyway, my caution is to make sure you are purchasing the property at a reduced price or improvement plans to increase the value. That way, you do not get upside down.
Also, make sure your PITI payment and rental price for the area make sense with expenses subtracted. You never know when life changes, and you may need to rent it out in the future.
Love these loans. I utilized them all the time in my rural county. Make sure you ask for as much in seller paid closing costs as you can get, they have a lot of fees
The Rural Development multifamily programs are a whole different animal than folks are discussing here, which is the single family guarantee or direct loan programs. The multifamily guarantee program are for 5+ units of affordable housing, with rent caps based on AMI. Individual units are capped at 30% of 115% of AMI. Up to 90% LTV. There is a direct loan program for very low income and housing for the elderly and handicapped. I did a mill redevelopment with the program some years ago. I paired the RD funding with Federal historic tax credits for the equity portion of my capital stack. Between the two programs a red-tape nightmare, but made for a successful project with very little out of pocket. Sold the building a couple of years ago after the tax credits were used up.
@Phil G. Thanks for the info. I figured there would be a lot of red tape, but I will continue to pursue it and see if it fits in my strategy.