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Updated over 4 years ago,
USDA Loan risks?! Advise needed.
So I I'm aware that in order to get a decent deal on a USDA loan you would need to find a really good deal for it to be worth it since ALL of it will have interest. I am looking to get my first investment property obviously low on money hints considering USDA loan to get started. I'm aware it needs to be good location, ideally I will be about 20- 30 mins outside of Nashville TN. Biggest procrastination at this point is I'm not even attempting to analyze deals which I know needs to change. I am planning on reaching out to a agent or 2 soon. But I feel like in order to make a solid investment on a USDA loan it would have to be a great deal.. they even have loans to help rehab the property. A could years down the road I would like to do a HELOC on the home in order to pull out some equity and maybe a % of the loan? I think that's how that works at least. But since I would not be putting a down payment on the home would that make banks less willing to refinance since I don't have any risk (my own money) involved? Seems like a solid bet until I get to this point of uncertainty. What do y'all think?