Back HomeNitty Gritty on Gov’t Loans
Who would’ve guessed that a government agency responsible for the grade of our beef is now in the lending business, and lending money to home buyers, no less. In fact, government loans are becoming increasingly popular but still many purchasers, and moreso first time homebuyers, are unaware of all the money out there that is available. However, borrowing money isn’t for the guy who can’t make his payments every month. Borrowers must still keep their jobs and their credit. You’ll have to prove you’re worthy!
For all of those who don’t have a lot of money to put down – LISTEN UP, or just continue reading. Through our local Yampa Valley Bank, USDA is offering 100% financing, based on appraised value! Here’s the skinny on USDA:
- Rates are competitive with current market (today is 5.5%), loans are 30-year fixed rates
- You do not have to be a 1st time homebuyer but must be for a primary residence
- There are income guidelines, no monthly mortgage insurance premiums
- No maximum loan limit and no prepayment penalty
- No down payment required
And here’s the nitty gritty on FHA (Federal Housing Administration) loans. These are ideal loans for those with low income and savings. These do require money down but as little as 3%. So, if you’re interested in buying a condo on the mountain at $200,000 you only need $6,000. Here are some other things to know about FHA:
- Finance all of your closing costs
- Not driven by credit scores
- Loan limits are $675,000
- No longer based on strict appraisals
- No income limits
For further information on these types of loans or any other, please call Kelly Stahl at Prudential. Although selling real estate is my forte, I always like to make sure my clients know all their options when shopping for loans. Call 970.875.2403 or email kelly@steamboatestates.com
