USDA Escrow Holdback
A USDA Escrow Holdback home loan helps a USDA buyer make the required repairs before purchasing or refinancing a USDA property. This program helps you save money by rolling the cost of the purchase/refinance and the repairs into one loan.
Buying a home with a USDA Escrow Holdback
The U.S. Department of Agriculture does more than monitor food production and safety. The department helps eligible home buyers pay for their residences through the USDA housing program. USDA Home Loans provide 100% financing for a home purchase or refinancing in a USDA designated rural area.
In many cases, USDA eligible properties bring with them the need to make repairs as a condition of home financing. With the USDA Escrow Holdback option, you can finance/refinance and make repairs without paying fees twice for two separate loans. You can also avoid the higher interest rates associated with short-term lending.
On top of these benefits, the loans come with the following advantages:
- 100% financing for first-time and repeating homebuyers
- 30-year fixed rate
- Self-employed income accepted
- No mortgage insurance required
- No maximum loan amount
- No reserve requirements
- Eligibility requirements
The program has eligibility guidelines based on income, location, size and other factors. The market value of the house cannot exceed the applicable loan limit in the area. They cannot be for income-generating activity such as farming.