Down payment assistance programs when buying a home come in handy when you are low on cash. For families that qualify there are some home loans in qualified rural areas. One such loan is USDA, a Government-Backed home loan. It allows more families to take part in home ownership. The USDA program is financing for new homes, resale or any home in a qualified area when you are home buying.
Benefits of Down Payment Assistance Programs!
- Thirty-year fixed loan with one hundred percent financing.
- A down payment is not needed for the USDA program.
- The home has to be in an eligible rural area. Your lender can determine this by going to the USDA website and entering the property address.
- Applicants may have an income of up to 115% of the median income for the qualified rural area.
- USDA has competitive interest rates.
- The Seller can pay lender fees, closing costs including pre-paid items or the fees can be included back into the loan. The home will have to appraise high enough to cover the extra fees.
- You may receive a gift or grant from family, friends or even non-profit agencies.
- The applicant is not required to have money available for reserves.
- The buyer must occupy the property.
- Can be a U.S. Citizen, U.S. non-citizen national or Qualified Alien.
- Meet the income guidelines, low to moderate income.
- Have the legal capacity to incur the loan obligation.
- Suspension from any federal program disqualifies an applicant from the USDA program.
- Property must be in an eligible area.
When buying a home, down payment assistance programs are in short supply. USDA is a good alternative for an applicant with good credit and a limited bank account. Approved lenders have the information necessary to assist you with down payment assistance programs. When you are ready to buy that next new home, please contact me, Chuck Tanner!