If living with mom and dad is starting to lose its appeal and you’re having trouble knowing if it’s day or night from your basement bedroom, you may be thinking about buying your own place. Scraping together the funds needed for a down payment, closing costs and other new homeowner costs, however, can be daunting. Fortunately, there’s a loan program available that is especially appealing to first-time homebuyers that lets you buy a home immediately with absolutely no money down.
It’s called the USDA Rural Development Loan, a zero-down, 100 percent financing home loan guaranteed by the United States Department of Agriculture. Created to improve the economy and quality of life in rural America, it’s one of the few 100 percent financing home loans available in today’s market. Here’s an overview of how it works:
What: USDA Rural Development Mortgages allow home buyers to borrow 100 percent of the appraised value of the home. Eligibility is determined by home location, income level and other requirements. If you qualify, you may build, rehabilitate, improve or relocate a dwelling in an eligible rural area.
Where: The main criteria for the loan is that the home needs to be located within certain geographical areas that are rural, or less-populated, as designated by the USDA. This often includes villages, small towns and suburban areas near larger cities and includes many locations that may surprise you.
How: Because the goal is to increase homeownership in non-urban areas, the mortgage rates and fees are lower and more attractive to potential borrowers than more traditional loans. You will be required, however, to pay a one-time cost - the USDA Guarantee Fee – but you won’t need to come up with the cash upfront to pay for it as this amount can also be rolled into the final adjusted loan amount.
Who: USDA Rural Development loans are made by an approved lender like Amerifirst Home Mortgage. If you want to learn more about it, give us a call and we can discuss your options. We’re here to help!
If you’re tired of living the life of a renter or living with friends or family, you may seriously want to consider the USDA Rural Development Loan, one of the most affordable mortgage programs available today. After all, finding a home where you can settle down - with plenty of room to grow - is a lifestyle worth pursuing.