How To Buy A House With Zero Down

Do you know what a USDA Rural Development loan is? If not, you might be missing out! We didn’t need to put any money down to purchase our first time home buyer house. Yes, a genuine mortgage requiring no down payment. Continue reading if you want to learn more about How To Buy A House With Zero Down payment programmed. (PS: Be sure to read my piece on how to stage your property to sell quickly if you’re selling a house and searching for advice.)

Do you still pay attention to me? It’s not a con and it’s not just for first-time homebuyers. Today I wanted to talk a little bit about our experience with the USDA Rural Development Home Loan, which is a less well-known but genuine alternative. Oh, and by the way, this is also how people with terrible credit may purchase a home! Interested? Go on reading How To Buy A House With Zero Down!

How To Buy A House With Zero Down?

About a year ago, we purchased our first home. Finding funding choices was one of the most difficult tasks. We lacked the down payment needed for a conventional loan. We also lacked the down payment necessary for an FHA loan. We simply knew we had to escape the rental maelstrom.

Over the years, we had paid SO much rent for overpriced apartments, security deposits, and purported “damages.” A previous apartment management business had sued us for fictitious “damages,” which the court eventually disregarded as a scare tactic since they had sued EVERY ONE of the 9 tenants who moved out that month for the same reason. and failed not bother to appear in court after that.

The Real Estate Union LLC and troublesome landlords had had ENOUGH. We desired a home of our own immediately. Even while it might not seem to be the most prudent course of action, we did a ton of study on our choices. Eventually, we found the USDA Home Loan Program, which was the best choice for us.

What is the USDA Rural Development Program?

This initiative is unknown to the majority of people. It’s a mortgage that the US Department of Agriculture, or USDA, is guaranteeing. In some regions, a loan through Rural Development is an option.

So How Can You Buy A House Without A Down Payment?

In essence, the USDA offers families incentives to purchase a property in a rural location (such as low interest rates and 0% down payment). This promotes economic growth in these locations with lesser populations and makes amazing deals available to people like us who don’t have a lot of cash up front.

The USDA $0 down payment mortgage program is available to anyone, even those who are not first-time home buyers. It’s crucial to remember that not all places are eligible for this financing. Even some that you might consider to be “rural” could not actually be eligible according to the program’s official rules.

You should visit the USDA Rural Development website if you’re interested in learning which cities and regions qualify where you are interested in buying. Click single family homes under “Property Eligibility” on the left column, then enter the address of the house you’re interested in.

We were ultimately able to purchase a lovely home with no money down, but it takes a little bit of homework. Although there are income restrictions, they are fairly lenient. We used the USDA Guaranteed version even though there is a low income variant (a USDA Direct Loan). Both alternatives are available for no down payment mortgages.

Overall, the process was just marginally more difficult than obtaining a conventional mortgage (because of the fact that your search options are more constrained), but even for us first-timers, everything went quite well. We had a $100 cheque in hand when we arrived for our closing. All we actually paid was that! The seller did not cover our half of the closing costs (who paid the majority).

I am by no means a financial or mortgage expert, thus I am unable to advise you on the suitability of this choice for your situation. The 8,000 residents of our small town are charming, yet it may also feel a little lonely at times. This is absolutely a choice you should think about if you don’t mind that sort of thing (much better if you ENJOY living in the middle of nowhere).

I’m not getting compensated in any way by the USDA; I just wanted to share this option because it’s not widely recognized and I believe the right family might benefit much from it.

What If I Don’t Qualify For FHA Down Payment Assistance?

Nothing matters. This is an entirely different program. To benefit from this no down payment mortgage option, you don’t have to be a first-time home buyer.

Check out my writings on 7 Tips And Tricks For First Time Home Buyers

Also, have a look at my Ultimate Guide First Time Homebuyer Program in Texas 2023

FAQ

Is this a down payment loan?

No, however PMI is an additional cost. You should talk with your lender or mortgage officer about this.

Who handles USDA Rural Development Loans?

The USDA Rural Development loans can only be held by approved lenders. Check this list to see whether your lender is eligible.

Can you buy a house with bad credit?

Yup! When we purchased our home, we had poor credit. You should review the lender’s requirements.