01-07-2010 10:30 AM
I am not sure if there is even a possibility of my family qualifying for a Direct USDA home loan of an amount sufficient to purchase a decent safe home.
My situation, I am a single disabled mother of 4 we rent an apartment at $575 a month with renters insurance adding another $24. This is not a safe place.
I have a car loan in the amount of $344.24 a month and credit card payments in the amount of $60 a month. (I plan on paying off another 3 cards before I
I have income of $674 from SSI and $1,490 in child support monthly.
My credit scores are 687 and 710. No negatives or lates on my reports.
The houses I have found in my area that would take care of the family needs range in price of 75k to 91k. Does anyone know if there is even a possiblity of getting a loan limit in that range being that for our family size we have a pretty low income. Any insight would greatly be appreciated Thanks!
01-08-2010 11:01 AM
You sound like the perfect candidate for a Direct Loan.
May I ask what County and State you are in? I might be able to get a better idea of how much you might qualify for. Do you have any idea what property taxes and hazard insurance are in your area?
One thing that's going to help you is that your income is from child support and SSI, which are untaxed, so USDA can "gross up" those amounts by 20%, making you eligible for more.
I'll be happy to help you. I'm in the middle of a Direct loan right now. :-)
01-09-2010 12:23 PM
My daughter qualified to buy a home through USDA. Hers was a direct loan, I believe. She makes about $9/hr and works full time...so, she doesn't make very much. She was able to buy a home for $145k. USDA would give her $140k, and she used savings of $5k for the rest. Her payments are subsidized. She pays only 1% interest now.
If she gets married, which would add to the family income, then her payments would go up...but I think her maximum rate would still be under 5%. She closed in August.
This was a great program, and the only way my daughter would likely ever be able to afford her own home. She also qualified for the $8k tax credit.
Are you close to paying that car loan off. The amount of the payments might hurt you.