There’s a change ahead in financing for first time buyers and others who qualify for the RD (Rural Development) loan which is sometimes also referred to as a Farmer’s Home Loan or USDA loan. The good news is the loan will still require no down payment — that’s right — no money down is needed with this loan. And you will still be able to negotiate for the seller to pay all of your closing costs!! But, for the first time ever, there will be an additional monthly fee which has an annualized rate of .3% of the loan amount. It is not killer but it will cause every payment to be higher. The higher the payment, the fewer people qualify.
Right now is an awesome time to buy a house if you are a first time home buyer. You can buy a home with the same amount of upfront cash as you might need for a security deposit if you were to rent — and sometimes less! Not only are great programs like the RD available but there are grants through the State to help offset the expense of buying a home.
With the high volume of foreclosed homes there is also an opportunity, for qualified buyers, to purchase a home and also finance a needed repair or repairs so that the new buyer will move into the and have the funds to immediately complete necessary repairs.
Renee