If you don’t mind living a little drive from the city, the “USDA Loan”
program I’m going to describe could be perfect for you
Here are the highlights:
- True zero down…you don’t need any down payment money
- 30 year fixed rate loans…no risky loans here
- Normal interest rates
- No requirement that you are a ‘first time homebuyer’…you can do this even if you just sold your home
- No reserves required. Normally banks want 2-3 months worth of house
payments in the bank; not with this program.
- Seller is allowed to pay all your closing costs. This means that you can buy
a home and literally have no money at all. This is unheard of.
- No mortgage insurance. This is completely unheard of and I expect this
will disappear before long. Mortgage insurance normally adds $100-200 per
month to your payment…but this program does not require it. Wow.
The fine print stuff:
- You can only buy homes more “out in the country”. If you would
like to know exactly which areas, subscribe to the email course on
this page and one of the first lessons is on eligible areas. There is no
flexibility on this; the home MUST be in the right area to qualify.
That said, there are a lot of places that DO qualify.
- Your credit does not have to be perfect, but they do want to see the
last 12 months be ok. There are no minimum credit scores, but scores
above 620 gets you extra bonus points with them. You normally need
3 years to pass after a bankruptcy or foreclosure, although if you have
a credit score in the 620 range they may consider an exception. There
are other zero down programs that permit lower credit scores.