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Mortgage Madness With Dorothy: STOP RENTING NOW!!!!!!!!!

Some helpful advice for people who are concerned with the cost of a down payment when purchasing a new home.

When looking to buy a home, especially as a young first time home-buyer potentially just starting out, the words "down payment" can seem a bit daunting. Luckily, being that it is a buyer's market these days, there are loan programs allowing for little to no down payment and seller paid closings costs.  Hence, you can get into a home for the costs of a home inspection and an appraisal fee... which all may cost under $1,000.

 

USDA, FHA & VA  loans are the most common programs allowing for:

  • Minimal down payment or "no down payment",
  • Flexible underwriting guidelines and minimal score requirements
  • Greatest buying power...aggressive debts to income ratios
  • All of these products allow "seller paid closing costs"...which means that the seller pays for all the closing and prepays costs out of their negotiated purchase price

USDA:

FHA:  

  • Minimum credit score 580
  • Limited Trades lines
  • 3.5% down payment
  • Gift funds allowed for down payment and closing costs
  • Seller paid closing costs allowed
  • Low interest rates

VA:

  • 100% financing NO down payment
  • Military Mortgage product
  • NO monthly mortgage insurance
  • Seller paid closing costs
  • Low interest rates

 

This is just an overview.. with rates being this low, as well as this being a buyers market..there's no better time, and your money invested than in buying a home... stop renting and start owning.

 

With further questions about USDA, FHA, and VA loans please feel free to blog me or contact me at Dorothy@fundsforhomes.com or 860-833-1083.

 

 

 

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

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