The Real Estate Browser Volume 8, Issue 8 | Page 12

12 — Say you saw it in The Real Estate Browser of Lynchburg — Volume 8 Number 8
www.LynchburgRealEstateBrowser.com
100% Financing Options for You to Buy Your New Home!
By Sherry Brady, NMLS 217258, Branch Manager,
Summit Mortgage Corporation
You’ve decided that you really want to buy
your own home. Maybe you’re tired of paying
rent when you could be building equity, or maybe
you just need a yard for your dog or a safer neigh-
borhood for your family. Whatever your reason
is, once you’ve been bitten by the bug to own your
own home, the only cure is usually becoming a
homeowner. You’re on a focused mission!
When you first start this process, you may have
little or no money saved toward that goal of own-
ing your own home, so the first thing you should
do once you decide you’re ready to buy a home is
start saving as much of your income as you possi-
bly can. Doing this will help save for a down pay-
ment, in the event that you don’t qualify for any
of the 100% financing options. It will also show
a lender how much you are capable of putting
toward a house payment each month, especially if
you’re just out of college or living with family, and
have no history of paying rent. There are several
100% financing options though, including VA,
VHDA and USDA, so let’s discuss those.
If you have ever served in the military – either
active or reserves – you may qualify for a VA
loan. This loan provides financing for 100% of
the purchase price up to $417,000 if you qualify
VA entitlement. Additionally, the seller can pay
all the Veterans closing costs and pre-paid items.
Another 100% option is the USDA loan. This
loan is for financing of properties in “rural” areas.
The qualifying areas are updated annually, but
for now, all counties surrounding Lynchburg are
eligible for this program.
This loan program is
subject to income limits; in this area, for example,
a family of four can earn up to approximately
$78,200 and still qualify.
If have five or more in
your family, your household income can be over
$100,000.
A third 100% option is VHDA’s FHA Plus
loan. This loan combines a 96.5% FHA loan
with a 3.5% VHDA loan to make up the 100%.
This loan can be used anywhere in the state of
Virginia, so this is an especially good option for
100% financing if the home falls in an area where
USDA will not finance. This can also be paired
with a Mortgage Credit Certificate program, or
“MCC’s” which can save you money over the life
of your loan.
In both the USDA and VHDA programs, the
seller can contribute up to 6% of the purchase
price toward the buyers closing costs, helping to
keep your out of pocket costs to an absolute mini-
mum.
All three programs are, of course, subject
to credit qualification and a satisfactory appraisal.
The best place to start, if you think you’re
ready to buy a home, is with a good lender!
Contact us or your lender today, and let us help
you learn what loan programs you qualify for,
and help make your dream of owning your own
home a reality!