Financing Information

Financing Information

There are numerous ways to finance homes and land.

100% financing
1st time home buyers
FHA loan (3.5% down payment)
Rural development/ USDA loan
Conventional

Majority of the loans available as based on the household income and debt ratios. If you are a 1st time home buyer there are loans offering up to 100% financing, tax credits, down payment assistance, and more. The most utilized program is FHA, which requires 3.5% of the principle down payment.

My suggestion to any buyer is to contact the lender of your choice, meet with them and discuss your situation (i.e.: debt, income, credit, down payment, etc.) A good banker has many loan programs to offer but should recognize which program is best for you.

Some of the information a lender will need is the past 2 year’s tax return, current pay stubs, etc. There are not any fees for the application process but once you start the loan process generally $500. is required to order an appraisal of the property you are buying. The closing cost of a loan generally runs 3-4% of the amount borrowed. Closing costs include the survey, termite inspection, title insurance, bank fees, etc. In some cases, you can negotiate the contract and have the seller pay the closing cost.

For land, acreage or mobile home financing requirement is different than residential. Most lenders will require a 10 – 20% down payment. The previous residential loan program mentioned does not qualify for vacant land.

If you have any questions about real estate purchase and financing give us a call and we will help guide you through the process.