You may be wondering what is available for you as a home buyer in today’s market.

Well…we have gone back to what seems like the “Horse and Buggy” days.

To answer this, let’s qualify it. Assuming you only want a fixed rate loan and your loan amount is below $417,000, you have only 3 to 4 options.

Option #1… is the Rural Home Loan (USDA loan). This loan requires the property to be located in specifically designated rural areas and has limits to income and debt ratios depending on the size of your family. If you do fit into the box, the rural home loan is a great loan. You can get 100% financing and you can roll all closing costs on top of the purchase price as long as the appraisal value is higher. Another great advantage to the “Rural Loan”…there is no monthly mortgage insurance. A 2% fee is rolled on top of the loan at purchase, but there is no recurring monthly fee. Rates are comparable to FHA and only 30 year fixed terms are available.

Feel free to contact me if you have more questions about the “Rural Home Loan”.

Stay tuned for… OPTION #2 in my next blog.