Can you buy a home with No Money Down if you are low income? Yes you can!
I currently have a client that is going to buy a home in Tooele County. His current income is $1200 a month and he is buying a home for $115,000. The payment? Around $320 a month.
This program is called a USDA direct loan and Tooele currently has funds available for the very low income category. Below are some frequently asked questions.
Want are the income limits for the very low income in Tooele County?
1 Person 23000,
2 Persons 26250,
3 Persons 29550,
4 Persons 32800,
5 Persons 35450,
6 Persons 38050,
7 Persons 40700,
8+ Persons 43300
Terms: Loans are for up to 33 years (38 for those with incomes below 60 percent of AMI and who cannot afford 33-year terms). The term is 30 years for manufactured homes. The promissory note interest rate is set by HCFP based on the Government’s cost of money. However, that interest rate is modified by payment assistance subsidy.
Credit requirements: This program is not credit score driven but you cannot have any open collections or judgements. Applicants must be unable to obtain credit elsewhere, yet have reasonable credit histories. .
Down payment: This a 100% financing program the only out of pocket expense will be your Earnest money which most people will get back at closing and if you want to pay for an inspector to come inspect the home.
Can I buy any home? You can look at any home currently on the market within the price range that you get approved for. The home must meet certain criteria to qualify such as double pane windows and R33 insulation in the roof.
Is there a waiting list? Right now there is funding available for the very low income program, however there is a low income program that you can get qualified for that would follow the same guidelines but has a waiting list.
What are the income limits for the low income?
1 Person 36750, 2 Persons 42000, 3 Persons 47250, 4 Persons 52500, 5 Persons 56700, 6 Persons 60900, 7 Persons 65100, 8+ Persons 69300
What will my payment be? It all depends on your income and how many people in the family.
Another example is a client that was making $12.00 a hour plus additional child support and she bought a $180,000 home and her payment was around $750.00 a month.
How do I get started? Just give us a call and we can get an application to you, Berna or Chris Sloan 435-840-5029