Buying a home with no money down is possible.
Coming up with a down payment on a home can seem like an impossible task. Most Americans have piles of debt and actually saving money might feel like trying to walk to the moon. But, what if we told you that buying a home with no money down is possible?
Here’s the typical scenario.
A typical down payment required to get the best interest rates and terms would be 20% of the value of the home. National average home prices are currently around $241,ooo.00 and that number is even higher here on the west coast. The down payment on the average priced home would be around $48,000.00! That’s a large amount of savings to plunk down for most anyone. Even if you’re opting for a low down payment option by using FHA, the down payment can still be out of reach for a lot of families.
Here’s an option you may not be aware of.
You might have heard of the USDA home purchase program. The USDA purchase program is an excellent option because there is no down payment requirement. You might be thinking with a name like USDA this program is only available for farms, right? That’s just not true, you can use USDA financing for home purchases. The USDA loan program was created in an effort to fill underpopulated areas around the United States. Here in Oregon, this is an excellent opportunity. Portland Oregon is known for it’s policies preventing urban sprawl. You don’t have to go very far outside of the city limits to find areas that are eligible for the USDA financing program.
Find areas eligible for USDA 100% financing with this link.
For a home to qualify, it must be located in a less densly populated area. Typically, the town must have a population of 10,000 or less. The good news is, 97% of the United States is in eligible areas for this program. If you’re open to the idea of living in a smaller town this could be an excellent program to look into. I’ve created a link to the USDA eligibility website. On the USDA site you’ll be able to search for eligible areas by address. You’ll have to accept the Property Eligibility Disclaimer before the page will allow you to search. The USDA makes every effort to ensure the information is accurate and complete. To verify property eligibility make sure you contact us here at Bamboo Mortgage. Here’s the link and happy hunting! https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp
If you have questions about USDA Rural Development financing, please let us know! – Bamboo Mortgage Services 503-265-8540