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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.
Two of the most popular mortgage loans for first-time buyers are the USDA Rural Development loan and the VA (Veterans) Home Loan. The main reason these two loans are so popular is because both loans allow you to purchase a home with very little or no money down (also known as a Zero Down or No Down Home Loan). Zero down home loans are most common among first-time homebuyers since they are typically young married couples or single professionals who are just starting out, and haven't yet saved enough financial resources to fund a down payment. At AmeriFirst, we specialize in both USDA Rural Development and VA Home Loans. Download our Concise Guide for the First Time Home Buyer. Here is a quick overview of the first-time homebuyer loans with zero down: USDA Rural Development Loan The USDA Rural Development Loan is offered through the U.S. Department of Agriculture. With this loan you can borrow up to 100% of the appraised value of the home, and in some instances, up to an additional 2% more that can be used for small repairs or improvements. One of the main requirements of the USDA loan is that the subject property must fall within a specific geographical location that is outside a city/metropolitan area. To find out if a particular property falls within the USDA required area, visit the U.S. Department of Agriculture website. VA Home Loan The VA Home Loan (Veterans) is another popular Zero Down Payment Mortgage offered by the Department of Veterans Affairs. Signed into law back in 1944 by then President Franklin D. Roosevelt, the Servicemen's Readjustment Act (GI Bill of Rights) offered veterans a federally guaranteed home loan with zero money down. There are some very specific eligibility requirements in order to qualify for a VA home loan so be sure you visit the U.S. Department of Veteran Affairs website for more details. You can also reach out to one of our friendly loan officers at a branch close to you. Even though both of these loan products are first-time homebuyer loans with zero down, there are still some out-of-pocket expenses when buying a home, i.e. earnest money, and home inspection. Make sure you have enough money saved up to cover these Buyer costs. Learn all about the first home buying process with our "Get Mortgage Ready Kit." The free eBook has a ton of information including a glossary of mortgage terms to help you be a more powerful and educated buyer. (cash picture derived from: Flickr user Andrew Magill)
A significant portion of our population — almost 60 million Americans — lives in rural communities, the U.S. Census Bureau reports. Rural life offers many advantages, including less crowding, traffic and noise, as well as tight-knit communities and closer contact with nature. But living in the countryside also requires making some adjustments. Here are a few rural living tips to help new homeowners make the adjustment to living in the country.
Every experienced hunter dreams of buying a few acres of land with the right combination of forest and open areas. There’s nothing more satisfying than knowing you are alone on your own land, and you can enjoy an amazing hunting experience without worrying about other hunters. With about 14 million people owning a hunting license in the US only (data source: statista.com), the public hunting domain is getting more crowded by the moment.
^UPDATED FOR 2015: This article was originally published in September 2012, and featured seven specific RD eligible properties that were available for sale. As you can imagine, these properties are not for sale anymore, but we wanted to share seven great communities that are RD eligible. Whether you're looking for a property on the coast in North Carolina, or a small historic home in French Lick, IN, the RD mortgage can help make your dreams a reality. Happy house hunting! The USDA Rural Development (RD) mortgage loan option lets you buy an eligible home with 100% financing. This means that you don't need a down payment* to buy your house. But what does "eligible home" mean? It's basically a geographic rule. USDA does have income limits also, but an eligible house must be in an area considered "rural." Download our Rural Development Fact Sheet and start planning your move today!
If you're debating the pros and cons of a USDA loan, you're probably already familiar with this 100% financing mortgage option. You may already know some of the pros to this loan. Further on in this article you'll read some of the good and some of the not so good about this mortgage financing choice. Download our Rural Development Factsheet here and learn more.