Re: USDA Direct Loan possibilit
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.