Consumer financial experts advise people to save up for a down payment on large purchases such as a car or home. The rule of thumb is to have at least 10% of the purchase price saved up in order to pay down the amount and get better financing. However, buying a house, and maintaining the property, can get expensive. Saving up $15,000 for a down payment, plus an extra $2,000 to $3,000 for improvements or a rainy day fund can really take some time. What if there was a way to save up AND get a home without a down payment? Thanks to USDA Rural Housing, that can be a reality.
The loan will also allow the seller to pay the necessary closing costs. This could mean no out of pocket costs for the borrower.
Huge Benefit for the Borrower
This means that a borrower can save up $4,000 to $5,000 in anticipation of their mortgage purchase and still have their fund intact when the purchase is complete. This gives the borrower a cushion to protect them in case of some emergency such as a major repair on their car or a sudden out of town travel to care for a loved one.
USDA loans are available all across the country. Ask your lender about the specific locations in your area that qualify for the financing and take advantage of this great mortgage.