In the Market for A home? It's true that most loans require the buyer to bring money to the closing table to cover there down payment. Fha normally requires a 3.5% down payment. Conventional loans can require as much as 20% down in some cases. However for those that qualify and don't mind living a little outside the box there is another option. This option not only helps you forgo the down payment but comes equipped with a few other perks as well.
The loan is the Rural Development Guaranteed Housing Loan program or for short the USDA LOAN. This loan is primarily used to assist low income families or individuals obtaining houses in rural areas. You can find homes that qualify for this loan in most counties such as Henry, Clayton, Cobb, Newton, Gwinnett and other surrounding counties. The best way to tell if a home qualifies for this type of loan is to ask your lender or you can go on the USDA website and enter in the address.
Funds for this program can be used to renovate, build or repair a home. You can also use the funds to relocate a home & to purchase and to prepare sites. You must be able to qualify for the program income wise and the home you choose must be one that qualifies for the program. Families and individuals must still be able to afford the mortgage payment on the home to include the taxes & insurance. This is generally about 24% of an applicants income. .
First time home buyers are great candidates for this program but repeat buyers can also benefit from this loan. Loan terms are up to 33 years fixed however, they can go as high as 38 years with an applicant who's income is below 60% of the ( AMI ). This is due to the applicant having difficulty affording a loan with a 30 year term. Buyers can receive a gift from family members or non-family members toward the purchase of the home with a gift letter. If you are a w-2 employee you can be eligible for this loan right away in most cases. Less than 2 years on a job may dis-qualify you from using bonus income to obtain the loan. Self employed applicants must supply two years of tax returns.
A few additional benefits for this loan
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No down payment required
Lenders have the flexibility to offer great loan terms without requiring great credit
The terms of the loans are 30 year fixed or over.
There is no prepayment penalty meaning you can pay this loan off early.
Properties being sold must meet the minimum standards.
The seller can pay closing cost or if the home can appraise the cost can be rolled in.
You can also finance your Upfront Mortgage Insurance.
To learn more about this loan give me a call. and I will help you locate a lender familiar with this type of loan. This is a great way to get your dream home. I have included a few links below that may help answer additional questions.
http://themortgagereports.com/6689/usda-loan-mortgage-guidelines
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
Morrishia Dooley-Associate Broker
Solid Source Realty
O-770-475-1130 ext-3815
Direct- 678-886-8353
email- thedwellingspecialist@gmail.com
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