You want to own your own home.
Its part of the American dream, right?
But saving up that magical 20% for a down payment seems impossible.
Even 10% would take years.
All you want is a nice, affordable house in the suburbs, or even out in the country.
You might be in luck, thanks to a little-known mortgage program.
If you qualify, it could help you buy your dream home with a $0 down payment.
Whats a USDA Home Loan?
The USDA home loan program is one of the ways the agency accomplishes that.
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Who Qualifies for a USDA Home Loan?
Like most loan programs, there are some eligibility requirements.
There may be exceptions to some of these qualifications based on the standards of individual lenders.
There are also rules for debt to income ratio and minimum credit scores.
Most lenders need a 640.
My company allows a 620 if we get automated approval and meet all approval criteria.
Did you know?
TheUSDA has an income eligibility calculatoryou can use to determine if you could qualify for a USDA home loan.
What Do it’s crucial that you Know About USDA Home Loans?
However, you still need to be ready to cover some basic costs of the loan.
The seller can often help pay some or all of the closing costs in a purchase scenario.
A buyer can get into a home with little money as long as they meet the criteria.
Anearnest money depositis basically a good faith deposit made to the seller.
The cost of a home inspection typically ranges from $280 to $390.
These loans also carry a 1% fee, which is paid at closing.
Then youll need $1,500 for the USDA fee.
Thats still a lot less than a 20% down payment of $30K, right?
To find one near you, check out theUSDAs list of approved lenders.
The USDA home loan program is targeted to a rather specific set of home buyers.
Tyler Omoth is a contributor to The Penny Hoarder.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…
