Tuesday, July 24, 2012 - Article by: Brian Mayer - Equity Resources -
Yes and it happens all the time. (I have one settling on 7/26 with NO MONEY!) Using a USDA loan you can buy a house with no down payment. The seller can contribute up to 6% towards closing and you can even roll closing into the appraised value above the sales price.All this means that anyone who qualifies can easily buy a house in a USDA eligible area using as little as $500 cash!
Its called an "Earnest Money Deposit" and represents your good faith deposit on the contract. The seller agrees to take the house off the market, can not accept any more offers, and agree to sell it to you for the agreed upon price in exchange for your deposit. If you change your mind, they keep the money. Most houses can be put under contract for $500.
The catch is you have to qualify for a USDA Loan. The two biggest barriers are income limits and location restrictions. Check my website for MD, VA, PA & WV USDA Areas. In other states check here.Click for USDA Income Limits in MD, VA, WV, & PA
There are a few other guidelines to be aware of when choosing a USDA Loan
Thats the basics, I even have a couple I am working with who are in a contract with no earnest money deposit and all closing is split between the lender and the seller so they are buying a house with NO CASH! Call me to learn more 443-624-9398
Didn't find the answer you wanted? Ask one of your own.
Ask our community a question.
Featured Lenders