Chances are, if you’re going to buy Advance, NC real estate, you’re going to need a loan. Traditional lenders prefer a down payment of twenty percent. When you’re looking at a $223,500 house, which is the national median sales price according to the National Association of REALTORS®, that can be a lot of money to come up with at once. The good news is that there are some options for you, if you can’t afford such a large down payment.
The VA Loan: Zero Down
The Veterans Affairs (formerly the Veterans Administration) will guarantee zero-down purchase mortgage loans for qualified veterans. These loans are originated by private lenders, which the VA then guarantees. One positive benefit of a VA loan is the lack of mortgage insurance.
However, there is a VA funding fee that is wrapped into the loan amount. This funding fee varies depending on the Veterans’ service and whether it is their first or subsequent use of the VA mortgage benefit.
The Department of Agriculture: Zero Down
The Department of Agriculture’s Rural Development mortgage guarantee program is another opportunity to secure a home with no down payment. This is a popular, and limited, program that often runs out of funding before the end of each fiscal year.
One common misconception regarding the Rural Development mortgage loan program is the fact that it is not confined to farmland. It is important to talk with a qualified home loan consultant to find out if this program is available in your area. You might be surprised to find out that it is. The USDA offers a map on it’s website that shows eligible areas.
Why Wouldn’t I Want A No-Money Down Loan?
A no-money down loan means higher interest rates and higher payments. It’s harder to find a lender that offers this type of loan. Generally, the more money you put for a down payment, the higher loan amount the lender will offer. If you don’t put any money down on the house, you’re likely to get approved for a smaller loan amount. You may have to settle for a house that is less than you wanted.
Why Buy Now?
In recent history, there's never been a time as perfect as this to buy Advance, NC real estate. With interest rates at the lowest they've been in decades, and the price of houses the lowest they've been in years, you'll be able to get much more for your money.
Let me help you find a great house and negotiate the best price and terms for you. Call me today at 336-998-7777 or email me at in@pre4u.com.
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