Category Archives: USDA elgibility

Ready to Buy a Home on Ocala? | Low on Down Payment Cash? FHA Not Only Option

Rhonda Buckner with Buckner Homes Realty
3200 SE 20 Ave. Ocala, Florida 34471
352-266-2637

With interest rates at historical lows and home prices being more affordable than they have been in decades, many people know that now is a great time to buy a home, but they may be worried about large down payment requirements.

When looking to finance a home, two of the most common questions asked include:

What loan options require a low (or no) down payment?
Is down payment assistance available?
Traditional loan options

While it is true that a 20 percent down payment is still required to avoid mortgage insurance for conventional loans, there certainly are mortgage options that require a low or no down payment. Almost all mortgage lenders offer at least these options:

VA mortgages requiring zero down.
USDA mortgages requiring zero down.
FHA mortgages requiring 3.5 percent down.
Conventional mortgages requiring 5 percent down.
Down payment assistance

In many parts of the country, down payment assistance programs are available. These programs usually work in conjunction with a local government in the form of a bond, government grant or community development program.

The U.S. Department of Housing and Urban Development maintains a database of state and local home buying assistance programs on its website.

Lease options and owner-carry

Particularly in states that were hit by the downturn in property values, the lease option has become a popular means to buy a house. The lease-option model can take many different forms and may or may not include the current owner agreeing to finance the home to the buyer.

In simple terms, the lease option is an agreement between the homeowner and the buyer where the buyer agrees to lease the property for a set period of time and at some point there is the option to get other means of financing.

In the event that the current owner of the home is willing to carry the buyer immediately, it is often referred to as an owner-carry, and the terms of the agreement can be extremely flexible regarding down payment, interest rate and term of the loan.

Essentially, there are no rules when it comes to an owner-carry or lease option: It is a negotiation between the homeowner (who is also acting as the landlord or lender or both) and the buyer (who may be a tenant for a period of time).

If you are not experienced in real estate contracts, it is always a good idea to work with an attorney or real estate agent who can help you understand what is customary in a lease option — and remember, pretty much anything goes in these agreements.

But one thing is certain: If you want to buy a home and are wondering what your options are for a low (or no) down payment, there are far more options out there than just getting an FHA loan. The easiest way to learn more about financing options? Start by asking a real estate agent. They sometimes tend to know far more about “creative financing” than loan officers do.

It is a great time to buy a home call Rhonda Buckner @352-266-2637 and find the home of your dreams

USDA Limits Jumped|100% Financing Available

On April 20, 2009 USDA Rural Development implemented consolidated income limit bands for the Single Family Housing Guaranteed Loan Program. The consolidated income limit band will assist Rural development to expand upon our mission to increase affordable home ownership opportunities within eligible rural communities.

The consolidated income limit bands will offer two adjusted income brackets:1-4 and 5-8. Households with more that eight members will have an additional added to the 5-8 bracket to determine eligibility. current eligible deductions for dependents, childcare cost, medical expenses, and disability expenses will remain in effect per RD Instruction 1980-D, section 1980.348.

When the revised RD Instruction 1980-D Exhibit C is published the income section of the nationwide eligibility website and the Guaranteed Underwriting system (GUS) will also be updated. Search to see if your home you want to purchase in the nationwide eligibility website

Great news for many in Ocala Florida. Many home here are eligible for USDA funds. Now a family of 1-4 can make $73,600 annually and families of 5-8 can make $97,150 annually…. so a single person with no children making $73,600 a year can qualify.

This is a huge opportunity since the majority of first time home buyers do not have a down payment and USDA is 100% financing. USDA also is low interest rates and credit scores need to be 620. Need to know if you qualify. Call Rhonda and I will hook you up with a great lender. Once your qualified I will search for that perfect home for you.
Call Rhonda 352-266-2637