Three USDA Loan Benefits that provide Sales Contract Negotiating Advantages for First Time Homebuyers!
What are three USDA loan benefits that provide sales contract negotiating advantages for first time homebuyers?
We are constantly hearing how tough it can be just to get an offer accepted! Unfortunately, it is true that many sellers are only wanting to accept offers with cash or conventional financing.
However, that can be very short-sighted from a home seller’s standpoint, because there are many extremely qualified USDA loan buyers who are getting passed by simply because they are not working with a conventional loan. In today’s video I will share three USDA loan benefits that provide sales contract negotiating advantages for first time homebuyers and why a home seller should not be scared of the USDA program.
Before we get started, don’t forget to take advantage and download our USDA Blueprint for Success with the link below. This free guide is designed to walk you through the USDA loan process step-by-step and is a great tool for both homebuyers and Realtors alike.
What are three USDA loan benefits that provide sales contract negotiating advantages for first time homebuyers?
What are three reasons a seller should accept a Florida, Texas, Tennessee, or Alabama USDA loan for financing?
As a starting point, I feel that it is important to help educate home sellers on USDA loan advantages, how it can expand their potential pool of buyers, and how working directly with a USDA approved lender can help to make for a successful transaction.
Remember, just because the sales contract states that they are getting a conventional loan, does not guarantee it will be a successful closing!
- There is NO Maximum Sales Price for USDA loans!
Unlike FHA or Conventional loans which have maximum loan limits per country, the USDA program does not have a maximum loan amount. USDA loans base the sales price a buyer is eligible for on the borrower’s ability to qualify.
Thus, if a home seller eliminates those offers with USDA loans, they are missing out on potential offers which could be even more competitive then only considering sales contracts with conventional loans.
USDA loans have come a long way since the guidelines were overhauled back on 12/1/2014 and because the USDA loan program has been greatly modernized, it should be viewed as a reliable loan program for sellers to choose from especially when working with a USDA Approved Lender such as Metroplex Mortgage Services.
- There are NO closing costs a seller has to pay on a USDA loan!
Many Realtors and sellers continue to think that there are additional costs a seller 
must pay if they accept a sales contract with USDA financing. This is commonly referred to as a “non-allowable” cost.
However, that is simply not true! A seller is not required to pay any of the buyer’s closing costs, pre-paid items, or inspections unless they agree to it within the sales contract. Just to be clear, the seller is not required to pay any additional costs for USDA financing.
I know how important it is to write a clean offer without requiring extra costs from the home seller, so please make sure sellers understand that USDA loans do not require any additional costs from them!
- In-ground swimming pools are allowed with a USDA home loan!
Under prior guidelines, there were restrictions for properties that had in-ground swimming pools. Even though this guideline was updated way back on December 1, 2014, many Realtors, sellers, and even some lenders still believe that an in-ground swimming pool cause trouble for USDA financing.
However, remember that this archaic guideline is thankfully a thing of the past. USDA loans do allow in-ground swimming pools!
Importance of working with a USDA Approved Lender
As an approved USDA lender, Metroplex Mortgage Services known for our specific USDA loan expertise and because of our dedicated in-house underwriting, this provides a customized USDA loan solution from initial qualification to closing. This type of team approach allows one point of contact for Realtors and buyers alike throughout the loan cycle.
Just call or email to discuss your scenario and let us show you the “Metroplex” difference!
(800) 806-9836 Ext. 280
SeanS@MPLX.org
P.S. – You can download our “USDA Blueprint for Success” by CLICKING HERE
