A true 0% down option PAYMENT isAVAILABLE to home buyers looking to purchase homes in areas surrounding West, Texas. Many home buyers realize the importance of keeping their cash reserves for purposes other than a down payment on a home. Thankfully, there is aSPECIAL government LOAN program from the USDA that can assist with this.
Post closing cash reserves are important to help set up home buyers for success for several reasons. First, it is always a good plan for a home owner to have at least 6 months reserves on hand for emergencies- such as normal replacement of items like hot water heaters, air conditioning and heating units, washer and dryer, and other appliances like stove, oven, disposal, etc.
Further, most home owners want to make purchases for new furniture or perhaps NEW WINDOW treatments like blinds or draperies when purchasing a new home. So, if we can structure a purchase with little to no out of pocket cash- it is a better idea.
Find out more about USDA home LOANS for the surrounding West area here:
- Interest Rates are still competitive compared to both FHA and Conventional LOANS. There is 100% financing available with small monthly mortgage INSURANCE (consists of about .30% of LOAN amounts per year).
- There are 2 great benefits to a USDA LOAN: 1. No DOWN PAYMENT with 100%FINANCING, and 2. A 30 year fixed interest rate.
- You can get very low Mortgage INSURANCE RATE (MI) when compared to FHA and Conventional loans and you'll see the savings!
Some qualifying requirements for a USDA home loan are as follows:
Congress has defined that the home must be in an eligible USDA area for you to qualify.
- USDA loans are available in most areas of the State of Texas- but not all. For Huntsville, for instance, generally most areas around the fringes to the north, east and south are eligible.
A very easy and efficient way to determine if you are in an eligible area is by visiting this website and putting in your address:http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property%4011.
- If your property is in an eligible area, you can use a USDA LOAN to purchase the new home.
- You can use a series of CREDITS that are afforded for child care and dependents under 18 years of age as youCALCULATE the family's "qualifying income."
- There areINCOME restrictions for this LOANPROGRAM. The USDA site has this income Calculatoravailable for you to determine whether or not your family will qualify @http://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state&NavKey=income%4011. Most families are eligible- and there is a formula based on number of people in the family, etc. contact an approved USDA lender for specifics to go over for your family.
You want to find an authorized USDA lender for the best service that is a MORTGAGE banker rather thanA BROKERso that there won't be any delays in getting YOUR LOAN approved. Further, make sure you deal with aMORTGAGE LENDER who is proficient in all aspects of a USDA LOAN- as the ultimate structure of YOUR LOAN and your purchase contract can save you thousands of dollars at time of closing.
For instance, a contract can be structured where the seller gives a buyer seller contributions- which can cover other closing costs such as title policies, setting up your escrow ACCOUNT for future taxes and insurance- and to purchase your initial insurance policy.
There are even some provisions for possible purchase of new appliances- so it is important to go with an expert that can process, underwrite and close your USDA 100% LOAN in the Graham surrounding area IN HOUSE.