USDA Rural Colorado Mortgages with Zero Down
Financing rural land in Colorado used for business and industry is now easier than ever. Colorado mortgages packaged through the USDA Rural Cooperative Development Program offer borrowers up to 100-percent financing.
Borrowers purchasing these USDA Colorado land loans and construction loans in Colorado are not required to hold assets to be eligible for the program and there are no minimum credit score guidelines. The program still accepts non-traditional credit as long as the borrower can document housing payment history and three alternative sources. Moderate category income limits apply.
To encourage the development of a healthy economic climate and job creation in rural areas, the USDA Rural Development Program assists lenders in extending credit for Colorado real estate located in rural areas. USDA Rural initiatives are helpful for housing, new businesses, industry, farms and cooperatives in cities or towns with a population of 10,000 or less.
Borrowers may be eligible to finance the purchase price, some or all of the closing costs and prepaids, and the USDA guarantee fee. In addition, the Guaranteed Rural Housing Program allows borrowers to wrap home improvements into their Colorado mortgage financing for these rural properties. There is no monthly mortgage insurance payment.
Businesses benefit in several ways from the Business & Industry loan program. They are able to receive higher loan amounts that help them restructure existing debts and expand. Businesses are eligible for longer repayment terms and better rates. Businesses that may not qualify for conventional lender financing may qualify for the USDA Rural Cooperative Development Program.
Moreover, the business borrower is involved with the lender when negotiating rates. Loan restrictions benefit the borrower. For example, a variable rate may only be adjusted a maximum of four times a year, the loans must be fully amortized, and no end of loan balloon payments are allowed.
Forming cooperatives is another option for business development. The Colorado USDA Rural Development website explains the value of cooperatives, which are special businesses or service organizations. The people who use the services own and control the cooperatives. These user-owners receive benefits based on their usage of the services. Small businesses may benefit from forming cooperatives for “shared marketing, supply purchases, or research and development.”
Across America, the USDA Rural Development has helped small agricultural producers to form business cooperatives, both rural and urban. Grants are available for this purpose as well as to assist with improving the operations of existing cooperatives.
For information about creative solutions for rural loans used to develop housing, businesses, industries, and cooperatives, call Janie Taylor and Taylor Mortgage Group LLC at 303-339-5950.