Seller’s market conditions persist in cities across the country, as inventory continues to fall short of demand. Under these kinds of conditions, sellers typically enjoy competing offers from
First Time Home Buyer Loan
USDA Loan Program
USDA is a loan program that offers 100% home financing in rural areas. This why the USDA loan is so popular with first-time home buyers. Now I know you are probably thinking, if only rural areas then you would have to live in the middle of no where, right? Actually, this is not true. Clayton, Knightdale, Smithfield, Fuquay-Varina, Zebulon, Holly Springs and even some small portions of Raleigh and Garner are USDA eligible.
Like most loans, you must meet certain requirements. Listed below are just a few.
Must be primary residence
Home must be in USDA eligible area Click here
Minimum 640 credit score
For a full list of requirements visit the USDA website
100% financing, which means no down payment
Closing costs can be rolled into the loan or can sometimes be paid by the seller
Great interest rates
30 year fixed rate offered
No loan limit but is based on your ability to pay
There is a USDA guarantee fee and annual fee that must be paid on the loan. Good news is that percentage was changed in April 2017. The guarantee fee is now 1% of the loan instead of 2.75% and the annual fee is now 0.35% instead of 0.5%. For example: $200k loan would mean $2000 guarantee fee and an annual fee of $700. Both fees can be rolled into the loan.
Overall the USDA loan program is a fantastic loan option and a great program for any one eligible. Contact me for more information on first-time home buyer programs.
The process of purchasing or selling a home can be both exciting and stressful. I have personal experience with both and I can relate to feeling overwhelmed with the process. I would love to share my ....