How To Get A New Home With Government Money For The Holidays

You can get a new home with government money for the holidays! Every year, thousands of families move out of cramped apartments and into new country domiciles. Folks who dream of leaving dreary  spaces can qualify for USDA loans and Rural Development loans. If you have decent credit and a steady income, you could purchase a house with no money down.

Lots of families survive in cramped city apartments. They believe themselves to be unable to vacate their spaces. Many of these people can qualify for USDA loans and Rural Development loans.

The government can help you leave your tight quarters. Once designated to helping farmers expand their properties, federal money is now also given to people who want to dwell in the country. If you dream of a peaceful life, those dollars can help you achieve it.

People do not need to be wealthy to qualify for USDA loans and Rural Development loans. The essential qualifications for getting federal funding for a country home are that you must have a stable income and a credit score above 600. You might be able to purchase a dwelling with no money down.

Folks can buy new homes with government money for the holidays. Each year, thousands of people leave cramped rented spaces and arrive at new country homes. People who want to abandon dreary apartments often qualify for USDA loans and Rural Development loans. If you are in decent financial standing and have a reliable income, you could buy a place with no money due up front.

Are you eligible for a Rural Development loan?

Apply for a USDA home loan now

USDA Guaranteed Property Requirements

There are a number of requirements that properties need to meet in order to qualify for a USDA Guaranteed Home Loan. The home needs to be readily accessible from the road, while posing no safety hazards to people using driveways or walkways. The foundation needs to be structurally sound, containing no cracks, or moisture intrusion, as well as adequately draining water away from the foundation. The walls of the home, both interior and exterior, must not show any structural fatigue, failure, rot, or bowing. It also must be free of mildew, and peeling, chipping and loose paint. All doors must be in good working condition, exhibiting no holes or functional defects. Exterior doors must also have functioning locks. All framing must be structurally sufficient. Windows must function and lock properly, be unbroken, and must be energy efficient. Interior floors must not be heavily damaged, worn, or soiled; they must be expected to last for at least five (5) more years. Garages must functional and have no obvious deficiencies; if attached to the home it must have a 1 hour fire wall in place, and maintained. Porches and decks must be structurally sound. The roof of the property must be free of leaks and expected to last for at least five (5) additional years. Gutters must be properly installed and have an appropriate drainpipe at the end of each. Cabinets and vanities within the home must be in fully functioning condition. Stairs cannot have any signs of structural issues, and are required to have a handrail if there are more than three risers, unless otherwise stated by State building code. Both electric and plumbing must be in adequate working order, and functioning. If heating and air conditioning is present, its components (exhaust fans, vents, etc.) must be in good working order. Sump pumps must comply with local regulations. The home must be free of all wood damaging pests and organisms. The USDA guaranteed program includes, but is not limited to these requirements.

USDA Preliminary Approval Process

The USDA Guaranteed 502 Program is an excellent loan for any individual interested in a home purchase.  It allows for minimal out of pocket cost and helps people obtain property in a manner unlike any other mortgage program.

 

Consumer Real Estate Finance Company (CREFCO) is a leader in this industry and specializes in this particular loan program.  If you would like to see if you can qualify for the program and see how best CREFCO can help you out, please contact one of our representatives who will get you started on the pre-approval process.  The following is a description of what you can expect regarding your initial inquiry.

 

Upon making an online inquiry or phone call directly to us you will be speaking with a company representative who will be able to look into the possibility of obtaining a loan.  The rep will ask which state you are looking to purchase in and discuss the parameters of what qualifies a structure for financing through the program.  Then, to determine if you as an individual can qualify, the rep will gather information regarding basic qualifications and get you transferred to a licensed loan officer in your state that will go over the financial aspects of the program with you.

 

The information obtained by the rep includes your current income situation, employment history, living situation (renting or ownership), as well as some basics about your overall credit profile.  For the file the rep will need contact information as well as a current physical address of the applicant in order to get the applicant speaking with a loan officer.  Once transferred, the loan officer will look into the credit profile of the customer and determine if the program would be an option at this time and discuss the remaining documents that would be needed to complete a pre-approval!

We do those tough loans

Here at CREFCO we pride ourselves on being able to help people get into a home where other mortgage companies would just issue a denial and move on.  For example we recently had a prospective client approach us about a house he really wanted to purchase.  However he had a bankruptcy that was discharged two years ago to the month that he wanted to submit his loan application and there was also a foreclosure involved in the bankruptcy.  After reviewing the file and realizing that this client had great reestablished credit with no blemishes and verified rent for the most recent twelve month period we determined that he was indeed eligible for a USDA home loan.  He met all of the requirements of the guidelines and he was issued a pre approval.  He subsequently successfully got his offer accepted on his dream home and we submitted his loan application to underwriting.  The underwriter reviewed his application and at first look she actually was going to deny the loan, however with the assistance of the senior loan officer we were able to point out all of the great aspects of the file and show the underwriter that he was indeed within the guidelines for the USDA loan program.  This clients file ultimately made it through underwriting and was approved by the states rural development program.  When he first started he was very skeptical that we would be able to help him due to his credit situation.  He has now successfully closed on the property, has moved into and is enjoying his dream home.

USDA home loans are the most affordable loan on the market today!

Not only is there no down payment involved, but the private mortgage insurance is much cheaper than any other loan product available!

On top of no down payment and low private mortgage insurance, but many times, the yearly taxes in USDA eligible areas tend to be lower than the neighboring cities that are.

It is also possible to keep your monthly payment down by shopping for cheap home owners insurance (also known as hazard insurance). I always suggest to clients that they call the insurance companies and tell them exactly the price you want to pay.

This loan is meant for rural America and to help the rural areas grow and strive!

Another way the loan stays affordable is the interest rates are governed by the government! Many times the interest rate is lower on a USDA loan than conventional, VA, or FHA.

Some people think that the USDA loan, since it is meant for the rural areas, only townships far from the metropolitan areas are eligible. As it turns out, this is untrue! Most areas are in fact eligbale!

Now, there are closing costs involved with the loan. But there are ways around having it come out of the buyers pocket!

How you ask?

There are 2 easy ways!

The first is getting seller concessions that will cover it. We have found that many times, with 5/6% seller concessions, the buyer can get in with no money out of their pocket!

The second way is if the home appraises for over the purchase price, we can roll the closing costs into the loan!

 

Low PMI, low interest rates, no down payment, low taxes, seller paid closing costs, and ability to finance closing costs in areas close to where you are at now are all great reasons to do the smart thing for yourself and your family and apply for a USDA home loan TODAY!