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A Farm of My Own:  Down Payment??  |
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Nigella
True Blue Farmgirl
386 Posts
Nigella
Chimacum
WA
USA
386 Posts |
 Posted - Jul 28 2008 : 5:34:41 PM
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Does anyone know what the pros and cons are to having a down payment when purchasing a house? I'm new to this whole thing. I'm 28 and getting married next year and my dream home is for sale right now just down the road from my folks' place (darling little house on just over 5 acres). We would much rather buy than rent, but we don't have a down payment. There aren't too many good paying jobs where we at and were only just able to find anything that pays well. I'm just wondering if I should pursue trying to buy this place that I daydream about constantly, or if we should just rent until we can scrape together enough money to put down on something. Any suggestions? Thank you ladies!
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If the ways is long
Let your heart be strong
Keep right on 'round the bend
Though you're tired and weary
Still journey on to your happy abode
Where all that you love
And are dreaming of
Will be there at the end of the road.
-Laura Ingalls Wilder |
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Alee
True Blue Farmgirl
22941 Posts
Alee
Worland
Wy
USA
22941 Posts |
Posted - Jul 28 2008 : 5:43:54 PM
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Hi Nigella!
Most mortgage places require you to have a down payment unless you have Sparkling credit history. It shows a commitment to the purchase and lessens the amount in the loan, lessens the risk for the lender. If you don't have a down payment, and depending on your financial situation, you and your fiance should look into the USDA Rural Development program. They help mid to low income people find and buy houses with up to 5 acres of land. The USDA program doesn't require you to have a down payment and often can give you a better than prime interest rate.
I know they don't have the most intuitive site, but here it is: http://www.rurdev.usda.gov/
I have puttered around there quite a bit and can usually find the answer to a lot of questions. But take a look around and you might consider calling your local office. They will run your credit and if you have poor credit, they will tell you what you need to do to fix your credit enough to qualify!
Alee
Farmgirl Sister #8
www.awarmheart.com
Please come visit Nora and me on our new blog:
www.farmgirlalee.blogspot.com |
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Nigella
True Blue Farmgirl
386 Posts
Nigella
Chimacum
WA
USA
386 Posts |
Posted - Jul 28 2008 : 5:47:20 PM
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Thank you so much for the info Alee!!
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If the ways is long
Let your heart be strong
Keep right on 'round the bend
Though you're tired and weary
Still journey on to your happy abode
Where all that you love
And are dreaming of
Will be there at the end of the road.
-Laura Ingalls Wilder |
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Alee
True Blue Farmgirl
22941 Posts
Alee
Worland
Wy
USA
22941 Posts |
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nubidane
True Blue Farmgirl
2881 Posts
Lisa
Georgetown
OH
2881 Posts |
Posted - Jul 28 2008 : 6:56:43 PM
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Nigella
I am an appraiser, & if the property is in solid shape structurally(cosmetics aren't an issue) you may qualify for an FHA loan, which requires little to no downpayment. These loans are also available for those with "less than stellar" credit. That being said, if you can at least scrape together some sort of downpayment, it helps a lot. I do FHA appraisals all day long, & find most have little cash down. |
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Nigella
True Blue Farmgirl
386 Posts
Nigella
Chimacum
WA
USA
386 Posts |
Posted - Jul 28 2008 : 7:21:00 PM
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Ohhh thank you Lisa :D
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If the ways is long
Let your heart be strong
Keep right on 'round the bend
Though you're tired and weary
Still journey on to your happy abode
Where all that you love
And are dreaming of
Will be there at the end of the road.
-Laura Ingalls Wilder |
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A Farm of My Own: Down Payment?? |
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Down Payment??
