Affordable Mortgages Serving Parkersburg and Charleston West Virginia.
USDA lets Renters buy their first home? And why not!
Have you ever thought about buying a home? Sure you have. And what has stopped you: no money, no money, and no money. The number one reason people can't buy a home is they have no money left at the end of the month. No mater how hard they try, they cant save enough money for a down payment and closing costs. But wait HUD now has solved this problem.
The government (HUD) has created a special program to allow renters with little or no cash to purchase their first home. This program has directly targeted Renters because of the requirements of the program. Let's just review those requirements and see how well most Renters fit the program:
Cash requirement: Many Renters have never been able to purchase a home because they never can save enough cash for the down payment to buy a home. I often speak to Renters who say how can I buy a home when I live from one pay check to the next? This program requires little or no cash at all if you do it right. Most homes closing under this program require less then $150 total to purchase that house.
Work history: The program requires the purchaser to have 2 years of employment history. If you have a steady job for the last 2 years you should qualify. If you are on Social Security or disability, you should qualify.
Maximum Earnings: The program is designed for people who earn less than approximately $6000 a month. So once again, many renters have lower income and will meet this requirement. You can typically qualify for payments of about 1/3 of your monthly pay check. For example, if you get $1500 a month in gross pay, you can qualify for a $60,000 home. If you make $2500 per month (household) you can qualify for a $115,000 home. Why pay $650 a month in rent, when the mortgage payment for a $75,000 home is less than that?
Limited Locations: The program was designed to move renters out of the city and into the smaller towns. If you want to move into your own house, many Renters are willing to move to smaller towns where they can enjoy the less hectic pace of the small town. Flexibility of where to live is a perfect situation. In areas like
West Virginia and Ohio, most of the state is non-city. Often just moving to the suburbs is far enough to qualify. Call your HUD lender to ask if your favorite places are on the list. Often entire counties qualify.
Summary: It is never too late to buy your first home! So make your plans to move out of the city and into that dream home in the small town that you always wanted. Use your fixed income, flexibility and good sense to buy that first home! But never say it is impossible.