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RDA has very specific rules about rural properties including location, existing home improvements and the amount of the loan. Income is a deciding factor as to whether an applicant is approved for a 0% down loan.
Find your state and county/parish for more specific information sbout government backed rural home loans.
I probably should clarify a few things. Im not in a rural area, and Im not a first time home buyer. Ive been a homeowner the last 10+ years on a much less income than what I make now. I only became a renter due to relocation to a new state. I do keep about 15,000 extra cash, but I dont really consider that savings....I just mention that, to clarify that I am not living paycheck to paycheck. It may be that I do need to rent awhile longer, but it is frustrating being that I have been a homeowner for so long prior.
Why not save the $7000 for a 3.5% down FHA loan? Or better yet, $10,000 for 5% down and you should be able to avoid FHA and go conventional. This should only take you 2.5 to 3.5 months, right? (though you'd need closing costs, so maybe would need to save for a few more months...) I understand having cash flow that has been directed toward debt. We are closing on a house today after spending years paying down debt, including student loans. I just wanted to say it can be done, so is an option. You just have to decide if it's the right time for you or if you can hold off and save for a much longer period of time. We did not want to wait any longer for a lot of personal reasons. Good luck!
Think about it, if you have no money is it really a good idea to buy a house? What happens the first time you have a plumbing problem, roof, furnace, etc. How are you going to get the money to fix it?
If your renting the landlord will fix it or you can just move.
Are you saying "no money at all" or "no money down"? We put ZERO down on our house when we bought it, and we had enough to buy a new car in our checking account. We didn't want to give all of our money away for the house and have nothing saved for emergencies or other large purchases, and the loan specialist told us that our down payment wouldn't have lowered our payment very much at all. We still got a rate in the 4% range and make our payments just fine. Maybe it is a good idea.
Are you saying "no money at all" or "no money down"? We put ZERO down on our house when we bought it, and we had enough to buy a new car in our checking account. We didn't want to give all of our money away for the house and have nothing saved for emergencies or other large purchases, and the loan specialist told us that our down payment wouldn't have lowered our payment very much at all. We still got a rate in the 4% range and make our payments just fine. Maybe it is a good idea.
That describes my thoughts and situation almost to a tee.
Please don't buy a house. You are in the same boat I was in a few years ago. I had student loans and very little savings because all my disposable income was going toward loan repayment. I had zero credit card debt, an amazing FICO and a good salary.
I bought my home with only 3% down. Then 3 months later I lost my job. I had to beg my parents for money to make my mortgage payment and to avoid foreclosure. I managed to get another job but it took 4 months and it wiped out any savings I did have.
So think about that. Once you close, that mortgage lasts for a long time!
Please don't buy a house. You are in the same boat I was in a few years ago. I had student loans and very little savings because all my disposable income was going toward loan repayment. I had zero credit card debt, an amazing FICO and a good salary.
I bought my home with only 3% down. Then 3 months later I lost my job. I had to beg my parents for money to make my mortgage payment and to avoid foreclosure. I managed to get another job but it took 4 months and it wiped out any savings I did have.
So think about that. Once you close, that mortgage lasts for a long time!
Yes, Im aware of many in that similiar situation. I was fortunate to choose a career in Nursing and have job security.
After thinking about all this carefully, Ive decided just to continue what Im doing and paying down debt. I just hate every month when I write that check for 1400 rent and Im thinking this could be my house! Grrrrr
Yes, Im aware of many in that similiar situation. I was fortunate to choose a career in Nursing and have job security.
After thinking about all this carefully, Ive decided just to continue what Im doing and paying down debt. I just hate every month when I write that check for 1400 rent and Im thinking this could be my house! Grrrrr
At the pace you are knocking down your student debt, you should be free and clear within a short time period, even less than a year according to the numbers in your original post.
So, you have time to really dwell (Pun! ) on the type of home you would choose, where, etc...
As you see that time coming, you can work with a lender and go to work shopping for a house.
Or, you can spend another year saving to accumulate a nice down payment.
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) on the type of home you would choose, where, etc...
