Most people can’t even believe that programs like this are still available but they are. Recent conversations with would be or soon to be home owners got me thinking that I should take a minute to explain how this is possible and why it’s an awesome loan product for anyone in a Rural Area or someone who is a Veteran.  I’ve sold quite a few houses in Gettysburg to people who have paid less than $1000.00 total expense to buy a home.  Perhaps you’re thinking how is that possible or maybe you’re thinking this is too good to be true.  I can assure you that it isn’t the case.

Rural Housing Loan by the USDA (United States Department of Agriculture) has a fantastic loan for homes located in rural areas.  Almost all homes in Adams County qualify for this loan.  If you’re not from Pennsylvania but have happened upon this post there is a very easy way of finding out if the house you are considering qualifies.  Visit the Rural Housing Eligibility Map.

There are income Limits so check with your local lender about the limits in your area.

The Rural Housing loan is a 100% financing loan product. Unlike an FHA loan, which has a monthly mortgage insurance premium included in your payment, the insurance premium is a one time fee paid up front which is rolled into the financing.   So instead of paying a few hundred a month you can finance the insurance.  It may not make sense how all of that works if you’re reading this but it means huge savings on your monthly payment.   This simple yet important fact is one huge benefit of the Rural Housing loan.  I also stated that it’s a 100% financing loan.  FHA loans require 3.5% down.  So benefit number two is that you can finance EVERYTHING.

Even the most naive home buyer knows that there are closing costs associated with a home purchase so the next most logical questions should be….How do I pay those?  Glad you asked.

A buyer financing with a Rural Housing loan is able to ask for up to 6% seller assistance. Seller assistance is money reimbursed to the buyer from the sellers sale proceeds to help them pay closing costs.  The average Rural Housing loan closing costs are about $6000-9000 locally depending on property taxes.  6% of as little as a $100,000 dollar sale price is $6000 which may be enough to cover the majority of closing costs in most scenarios.  If you can’t fork over a few thousand to buy a house it might not be the best decision to make.

Are you starting to see the potential here? Buying a home doesn’t have to be expensive.  Once you’re in the home you’ll assume the responsibility of maintenance but you’ll gain equity build up, tax benefits, and hopefully sometime in the near future housing will again appreciate and become the best investment a person can make.

VA Loans have a lot of the same benefits so consult your lender if you’re served in one our nations armed forces.

Conctact me at 717-319-3408 if you’re looking for a Gettysburg PA home.

 

 

 

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