Anyone ever done one of the USDA loans for land? Looking for some help in this area.

Land only? Or with a home on it?

Either....Looking at options....

You need an existing home and it needs to be in an approved area. You can check here

https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp

oK! Thanks..

You also need to check income limits for that county. Austin is 96.4K for family of 4

https://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state

SteveBott said:

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You need an existing home and it needs to be in an approved area. You can check here

https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp

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Can you go USDA for new construction?

Great question. And I dont know.

My educated guess is no. That loan is very unique and I consider it a niche product. It does not work in any metro areas in Texas and I mostly do business in those.

It does work in the country and more importantly on the fringe of metros. A developer can go out one more town and get USDA. Say from Katy to Brookshir. Katy is ineligible but Brook is.

Developers buy land in Brook and advertise 100% financing with USDA. Walla! Now your selling homes. Those developers do not need financing they just build them and sell them.

Not much need in the USDA market from what I have noticed

USDA does not have a construction program, but FHA does. FHA would require 3.5% down which is the lowest construction program I am aware of as most construction programs require at least 10% if not 20%. FHA would not also be income or geographically restricted. In smaller counties the max loan amount is 275,665 with a higher limits in metro areas.

I have seen USDA loans for new construction, but they were not custom built.

That fits into my scenario of my last post.

Any loan program can finance a permanent loan assuming the builder is financing the construction. The hard part is the builder is not financing the construction. VA, FHA and Fannie all have a one time close product for when the buyer has to finance, but USDA does not.

Jay@AgsReward.com said:

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USDA does not have a construction program, but FHA does. FHA would require 3.5% down which is the lowest construction program I am aware of as most construction programs require at least 10% if not 20%. FHA would not also be income or geographically restricted. In smaller counties the max loan amount is 275,665 with a higher limits in metro areas.

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Are you able to underwrite a one time close FHA construction loan in BCS?