It is your turn to become a homeowner no matter your income and credit score!
If you have a hard time coming up with money for mortgage downpayment,you must look into the 100 percent USDA home loans which is a zero money down mortgage.It is one of the best choices out there for people who are not able to afford the down payment because of not having enough savings but are desperately looking for money for paying the same. And the good news is this: you do not have to give up your dreams just because the closing costs get in your way. No money down mortgage is all you need! So, what are the features you ask? Here are the bullet points:
1. Absolutely zero money down,
2. no upfront fee,
3. no private mortgage insurance [unlike in the case of the FHA loans for single mothers which will have you paying for the PMI each month until the equity reaches 20 percent],
4. easiest approval – Do not worry if your credit score is less than stellar. Even if every mortgage lender had closed their doors to you, there are very high chances USDA mortgage will not,
5. low interest rate compared to the conventional mortgage.
So, what are the cons?
It is a rural home loan. That means you cannot buy a home anywhere you like, and the program is mainly aimed at triggering the rural development. The home you are looking to buy must be located in a qualified[by the USDA] rural area. But wait…it is not as bad as it might sound to the readers at all. Many borrowers looking for a mortgage immediately reject the option of USDA mortgage once they hear the part about living in a rural area. Refrain from doing that. You need to make sure to investigate how the place is where the house is located. The area and the community might be much better than what you had envisioned. Contrary to the visions in your mind, the locality might have amenities and might not be a remote area.
“How do i know an area is qualified for the loan?”:
Just asking a representative from a USDA Rural Development field office will clear up the doubts you have in mind – contact link here.
Guaranteed home loans with zero closing costs:
Let us say you want to go ahead with this no money down home loan. Do not take for granted that the loan is guaranteed for everyone. As stated earlier, poor credit score will not get in the way, and your low or moderate income will not affect approval, either. But the home you choose has to meet a lot of requirements before you can move forward. The home inspection – mainly checked to see if the housing provides sufficient insulation and if structural soundness is good – that needs to be done is one major difference that separates an USDA home loan from that of the FHA or the conventional loans for buying a house. Refer to the property eligibility and income eligibility section in the officiate site here – linked
Be informed that there are two kinds of loans:
They are named as:
1. a direct loan -which, as the name suggests, is directly funded by the Government and are ideal options for families with low and very low income,
2. Guaranteed loan – as you could easily guess, these are not funded directly but are given through the USDA approved lenders. As a first step towards getting a guaranteed loan, you need to apply to the lender who participates in the program. Since the government acts as the guarantor, easy approval for even the bad credit history borrowers becomes a reality.
Where to go from here:
Now that you have learned about the pros and cons of 100 percent USDA home loans for single mothers, find a regional office through the link given below and get started on the path to buying your very first home: