In the Triangle, we are lucky to have such a large area that qualifies for USDA financing on mortgage loans! This program offers a 100% loan for homebuyers who qualify with properties located in the more “rural” parts of the area!
Does that mean it’s just for a FARM? Oh NO! This is for your home, not for income producing farms. The loans do have a guarantee fee of @ 3.5%. This means that if you purchase a home for $100,000 (I only use this example since I can do this math in my head) then you will have an additional fee of $3500 added to your loan. The total loan will be $103,500- which means that you will owe more on the home than you paid for it when you close. Because of this, I think there are a few important things you should consider: [Read more...]