How to search for a banked owned USDA eligible property

When I speak to perspective home buyers, often I am told that they have been looking at bank owned properties. Every one looking for real estate today is looking to the deal of a life time. In certain areas of the country you can get a foreclosure property at around a 40% discount off of what would normally be considered a fair market price.

I have been writing a lot about our no money down home loan and I thought I should share a way for agents to be able to find foreclosed properties that are located an eligible area. This way can not only can a home buyer can their home at a discounted price, there is no down payment required, or monthly mortgage insurance.

There are 2 different types of ways to utilize this no money down home loan with foreclosures. First I recommend using the USDA property eligibility maps.

The other batch of homes are actually USDA Foreclosures, so they are bank owned inventory that were originally financed with a Rural Development Loan.

Below is the link the find actual bank owned properties that were originally funded by a USDA home loan.

http://www.resales.usda.gov/sfhdirect/sfh_prop_main.cfm

To search for USDA properties follow these steps:

  1. Go to the website above
  2. Select the State and the select the County that you wish to search in

If you find a property in those search results that are automatically eligible for the product. If the boundaries have changed, these property are grandfathered in.

You might be surprised by the lack of results by this second search option. Keep in mind that the USDA home loan has the lowest default rate out of the available products. My opinion is that it will best suit you to search by a specific property address.

Please do not hesitate to contact me with any questions on how to use either of these searches!

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