I was chatting with a friend the other day about USDA loans and she mentioned that she thought that USDA loans were for farm houses and things way out in the “sticks” I explained to her that her concept of USDA loans was a bit off.

Yes you have to be purchasing a home in a “rural area” but rural is a term that our government uses a bit differently. In Pierce County Washington much of the county is considered rural. That means that towns like Gig Harbor, Graham, Bonney Lake, Roy, McKenna, DuPont and many more are considered rural. You can find more information on Pierce County USDA eligibility by reading our other articles here on Classic Homes Northwest.

More on USDA Loans in Pierce County.

Update on congressional extending the funding for the 2010 fiscal year.

Here are two listings we have right now that are located within USDA boundaries. One is located on Anderson Island Offered at $259,000 with a great view of East Oro Bay.Membership in the Riviera Country Club is included in the annual homeowners dues as is your water.Learn more about Anderson Island here. The other is in Scenic Shores by Lake Lawrence. Anderson Island is a remote quiet island in the Puget Sound but it a great place to get away for a weekend etc. If you are a first time buyer and you are looking for an affordable home then you should take a look at Anderson Island. The home for sale at Lake Lawrence is offered at $209,000 and allows you to use the facilities at Lake Lawrence with your HOA dues. Close to Ft. Lewis, Olympia, Yelm, and a 30 minute drive to Tacoma. This 3 bedroom home could be yours for what most of us pay in rent each month. For more information on this house we have lots more here.

As you can see both of these homes are not farm houses and they are not on dirt roads. USDA loans can help you if you are looking at homes in the areas outside of the main core of Pierce County and the City of Tacoma.

When you’re ready to learn more about USDA loans and how they can help you take advantage of the current interest rates and property values we will be happy to introduce you to a lender who can walk you through the process.

If you would like a list of USDA eligible homes in Pierce County please fill out the contact form on the right side of the blog. We will send out a list of currently available homes to you. If you’re ready to talk so are we. Give us a call at 253-219-1194 today.

As we have reported here in previous articles the USDA is running out of funds for the fiscal year 2010. The announcement today that the USDA will issue conditional commitments for Section 502 Single Family Housing Guaranteed Loans after the funds have been exhausted is potential good news for home buyers in Pierce County or anywhere that it is possible to use USDA financing. Your USDA approved lender can continue to process completed loan requests, receive conditional commitments, and close loans.

There is a change to the USDA financing the “Guarantee Fee” is increasing to 3.5% for purchase loan and it is increasing to 2.25 for refinance loans. The cost of getting a USDA loan has just increased. The borrower can still put zero down but will have the guarantee fee wrapped into the total loan. In a very simple example if you were to buy a 100,000$ home the initial loan amount would be 103,500$

While the cost of borrowing money using USDA financing has gone up the news that funds will continue to be available is good news for home buyers. When you are ready to begin looking for your home we hope you will give us a call so we can help you through the process of making a great decision. We work with multiple approved USDA lenders and we can help match you with a lender who will work hard for you to get the best possible financing. We then will work hard for you to find the best home and the best deal. We’re here when you’re ready.