No money down doesn't mean you won't be writing checks!! I get a lot of calls from buyers who have heard they can buy a house with no money down followed by the question: Is this true?? My answer yes and no.
In the Tri-State Area there is a loan called a USDA or Rural Housing loan that is specifically for qualifying homes that are located outside city limits. There is not a down payment. It's a great loan for buyers who don't have a lot of cash saved up or want to use their savings to remodel their new home.
The no part? There are always deposits and fees when you buy a house. When you make an offer, you'll have an Earnest Money Deposit. This is a "good faith" deposit that you are serious when you make an offer. If your offer is accepted, this is held in your agent's or the listing agent's escrow account until your closing day. Typically you'll get this back at closing or it will be applied toward any closing costs you have.
So, what other fees are there? I'm glad you asked. Here's a list of possible fees depending on if you choose to have inspections (YES, HAVE THE HOUSE INSPECTED!!!) and if the seller is willing to pay your closing costs.
- Home Inspection around $300
- Wood Destroying Insect Inspection around $100
- Septic Inspection around $200
- Well Water Inspection (if the home isn't on county water) $150
- Closing Costs (if not seller paid) up to $4,000
So yes, you can get a loan with no down payment, but you'll still have a few fees.
If you'd like more info on USDA or other loan options, the Tri-State Real Estate Market or anything real estate related, give me a shout!!
Kathy Jackson | REALTOR®
RE/MAX Midwest Real Estate Group
2013 100% Club Member
2012 100% Club Member
2011 100% Club Member
12252 Hwy 41 N | Evansville, IN 47725
Cell: 270.844.2607
Email: Kathy@buyselltristatehomes.com
www.kathyjackson.net
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