If you live in the Calhoun County area, you may be considering buying your first home in Battle Creek, Michigan. The times we are in offer a great opportunity for first time home buyers and the opportunities for buying your first home in Battle Creek could never be better.
Today, few home buyers have the cash savings to buy a home outright, so most need to explore getting approved for a loan to purchase a home. There are three basic first time home buyer loan programs that I usually recommend for buying your first home in Battle Creek.
First, if you are a veteran, you should take advantage of the Veterans Administration (VA) loan, and it offers 100% financing and a low interest rate, and it allows for the person you are buying the home from to pay up to 4% of the closing costs if you can negotiate that into the contract. So as a local Realtor in Battle Creek, Michigan, I usually recommend that veterans explore this program first.
The next program that is really exciting is the US Department of Agriculture (USDA) Rural Development loan program for single family homes. This can also offer 100% financing, but it allows for the seller to pay up to 6% towards your closing costs if it is negotiated. Additionally, there are certain repairs the loan will allow to be done on the home and rolled into the mortgage.
The only disadvantage to this program is that the home's location has a bearing as to whether this program can be used in buying your first home in Battle Creek. It has to fall within the predefined maps by USDA that qualifies the location as a rural property. In Battle Creek, that area is usually Pennfield about 200 yards North of Morgan Road, and South of B Drive and East of Wattles Park and on the West side it is pretty much the County line. You can find these maps on my website at: www.michaeldelaware.com.
The third loan program for buying your first home in Battle Creek that I recommend is the Federal Housing Authority (FHA) loan which offers a similar low interest rate to the other two, and allows for up to 6% from the seller in closing costs, but it requires a 3 ½% down payment from you as the buyer in order to purchase. So if the sales price of the home is $100,000 the down payment required from you would be $3500.
All three of these programs present a great opportunity for buyers in buying your first home in Battle Creek, and as a Realtor that services the Southwest Michigan area I find many people taking advantage of them. For help in getting started on buying your first home in Battle Creek, give me a call directly at: 269-441-8182 or visit my website at: www.michaeldelaware.com.