Welcome to the HomeJewell.com Blog

2019-07-16 18:30:47
Buy a Home with No Money Down

No Money Down

Remember the days when zero down payment loans were everywhere and every lender across the country was hawking them from their websites and in late-night infomercials? Anybody with a pulse could buy a home with very little money out of pocket.

We all know how that turned out and, in the end lenders put the brakes on their generosity.

Zero-down loans still exist, however, and the most popular among them is the VA and the USDA loans. Only military veterans and current members and some spouses qualify for the former, so let’s take a look at the USDA, a loan you might just qualify for.

What the USDA Offers

Depending on income, a borrower can qualify for a loan guarantee made to a lender (much like the FHA-backed loan), or a direct loan made by the USDA.

Both of the programs have income limitations and the home must be located in a rural area, which the USDA defines as “open country or rural towns” with a population of no more than 20,000. You cannot own another home if it is within 50 miles of the home you wish to purchase.

Qualifications

Here are the basic qualification requirements for the USDA Direct Loan:

  • The borrower must have a low to very low income.
  • The borrower must be without adequate housing and must be able to afford house payments, including insurance and taxes.
  • Applicants must prove that they tried to get a conventional loan but were denied credit.
  • Applicants must have a “reasonable” credit history.
  • Applicants must be U.S. citizens or a legally admitted immigrant.

Just as the borrower must pass muster for the loan, so must the home that he or she wishes to purchase. The house must be modest for the area in size, design and price (swimming pools are prohibited). There are additional requirements that your lender can fill you in on.

The qualification guidelines for the Guaranteed Loan are similar to the Direct Loan except that your income may be a bit higher and you must use a USDA-approved lender.

While there are several low-down payment loan programs on the market, the USDA’s zero down requirement is a boon for homebuyers with decent credit, low income and no cash reserves for a down payment.

 
Blog Archive
2019-08-15 09:05:59
Deciding how much to Offer on a Home

2019-08-07 17:09:37
Buying a FSBO without an Agent

2019-07-16 18:30:47
Buy a Home with No Money Down

2019-07-13 16:23:38
The Essential Real Estate Glossary

2019-06-26 17:34:54
3 Tips for Attending Open Houses

2019-06-12 10:29:26
Buy First or Sell First? 3 Things to Consider

2019-06-06 12:02:21
The Many Fingers in the Mortgage Pie

2019-05-30 16:41:48
5 Must Do Repairs

2019-05-25 21:58:41
Update your Bathroom this Weekend

2019-05-16 17:11:21
Look for these 3 Warning Signs when Shopping for a Home

2019-05-10 22:25:38
3 Common Home Buying Myths

2019-05-03 16:15:39
4 Tips for Home Buyers with Boats

2019-04-19 10:44:51
Your Moving Checklist

2019-04-19 10:43:32
4 Steps to an Organized Garage

2019-03-01 13:44:53
HOA? Beware the Rules and Regulations!

2019-02-08 12:25:49
3 Ways to get an Amazing Deal in a Buyer Friendly Market

2018-12-14 12:53:49
The Home-Buying Wish List

2018-11-17 19:22:13
Writing a Strong Offer

2018-11-02 19:28:00
4 Characteristics of a Seller

2018-10-25 15:26:55
The Anatomy of a Mortgage Payment

2018-10-14 22:32:02
3 Tips for Attending Open Houses

2018-10-06 17:58:10
3 Renovations that Will NOT Increase your Value

2018-09-13 13:03:11
How much can you afford?

2018-09-07 19:04:20
Buyers Remorse

2018-08-30 21:48:12
Movin on Up

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.