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USDA Direct Rural Housing Loan

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SuzyStellar
Contributor

Re: USDA Direct Rural Housing Loan

Sorry my point was, it would be much cheaper to move, than to stay here.

Message 11 of 14
IOBA
Senior Contributor

Re: USDA Direct Rural Housing Loan

You should do what is best for you...

 

Either way, things do add up and the cost of living anywhere is pretty expensive!   Home  ownership can be very expensive too, especially with unexpected home repairs and regular maintenence on things that need to be done over time.

 

I added up the numbers and they don't equal $1350.   Why are you paying $200 a month in maintenence for a rental house?   The phone bill will probaby be close the same as it is  now.  Some of the other utilities might be too, even if the taxes are overall lower.

 

Message 12 of 14
Jazzzy
Valued Contributor

Re: USDA Direct Rural Housing Loan


@SuzyStellar wrote:

I would normally totally agree with you.  However, we aren't doing so bad.  The rent has been late because I don't get to his ofice for a few days maybe a week or 2, because I work night shift, and am sleeping when his office is open.  Our only bills are utilities, rent, car insurance, and a cc with 0 balance.  Of course we harldy have any savings, but according to the handbooks, you aren't supposed to have more than $5000 liquid to qualify for the direct.  I could have read that wrong, but I am pretty sure we are perfect for this program.  It is for the working poor people who can't qualify for a standard mortgage.  I am just really worried about everything, and we have only been pre qualified, so...HELP!!!! Please!!!


Take a deep breath...

 

This is a good program. My daughter purchased her home through this program. She makes very little money. I think she only makes over $20k if she works overtime.

 

You are exactly right. This is a program for people who have earned income but would have no other way to afford a home. Regular banks won't touch them due to their low income. My daughter pays 1% interest, and the feds through this program pay the rest. You have to buy in an area that is considered "rural," but in our case our community has approx. 10,000 people, a public university, etc....but is still considered rural. So, you don't have to live out in the country unless you want to. Lots of people get confused about that.

 

Your homebuying process will be just like someone getting a regular mortgage. You'll look at homes, pick one out, negotiate on it, have inspections and appraisals, etc.

 

Your payment may be adjusted as your income goes up. Depending upon how long you stay in the house, if you make a profit on it when you sell the home you may have to pay some of the profit back to the government. Keep track of any improvements you do on the home so that you get credit for doing those.

 

It's a good program. Don't be afraid to work through it.

Message 13 of 14
SuzyStellar
Contributor

Re: USDA Direct Rural Housing Loan

Thanks!  After finishing the homebuyers education course tonight, I learned tons of things I hadn't thought of.  I am however getting more excited about the process though it is a lot to do, and take in.  I finished up our paper work for the application, and I am sending it out in a day or two.  I remember the woman at the office told me about a small bill that had to be taken care of, and I am not sure if she meant to pay it before I send in our app, or just before closing?  I'm not sure so I am paying that off tomorrow, and then I will send everything in together.  I am pretty happy, but still just a bit scared. 

 

 

My math skills are horrendous!  Sorry I though I was right on, but pretty close.  It's better than estimating down and not having the money to pay!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Message 14 of 14
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