Over 18 years in this business and I set a new record, just $9.55 to buy a $225,000 home! No joke, Chris and Delia were able to buy a twin home in Harleysville with 3 bedrooms, 2 1/2 baths, a finished basement, and fenced-in back yard for just $9.55 out of pocket!
How can this be done? They qualified for the USDA Rural Development program. This mortgage program, which has been around for over 20 years, allows 100% financing and when structured properly, it allows for the seller and/or lender to credit you money to pay all closing costs, up to 6% of the sale price! So what rate did they get?? A 30 year fixed rate at 3.75%. With a payment of only $1455, they are saving $300 from their former rent payment. Amazing!
So how can you do this too? Yes, there are restrictions but they are not as bad as you would think. First and foremost, you need to find a home in an eligible area. Because this program is called “rural development”, you need to find a home in what the USDA considers rural. Most of central and upper Montgomery and Bucks Counties apply, but you can see the map for yourself here.
Next, you need to meet the income requirements that are quite lenient. For 1-4 people living in the house, the total household income should be LESS than $93,450. If you have more people in your household, you can make more. To determine if your current income levels apply, just complete the simple form by clicking here.
Lastly, the infamous credit rating. You need to have a minimum of a 600 credit score. That means the middle of all three credit scores reporting on your credit report must be a minimum of 600. If you need to get a copy of your credit report, contact me or visit PrivacyGuard.com where you can sign up to get your report for $1. Just be sure to cancel the recurring monthly subscription when you are done using the service.
Now that you have done your homework, you should contact a lender to get pre-approved for the program. Make sure the lender offers the USDA program and has experience in using it. They can be tricky if you do not know what you are doing. The easiest way to make sure you are dealing with the right people is to complete my free online pre-approval form so that I can forward your information to the best person for your particular situation.
Not everyone will be able to buy for less than $10, after all, this is the lowest amount of money spent to buy a home in my 18 years in real estate. But I will guarantee that you will put much less out of pocket than paying first and last month rent on a new apartment. So call, text, or email me with questions and let’s get you started! Below are some of the newest Zero Down Home listings available….
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