Post # 16
cucumberroll : Yes it is in a rural area and does qualify.
stuckinwonderland : we were hoping to have 3 months mortgage in savings before applying for this loan just in case of an emergency.
Gsxr06 : Thank you for the link lots of helpful information. We would be buying in Kansas. Maybe Missouri but most of the stuff near stateline probably would not qualify because it’s cities.
SithLady : Exactly what we want to do. Plus the price point we are looking at we could easily over pay our mortgage every month (or most months) to build more equity faster. But we would probably be there at least 10 years anyhow.
RedHeadKel : Exactly! Our mortgage including taxes and insurance would still be LESS than rent in this area. According to one calculator we’d save like 16K in a year by buying. (Because we’d be gaining equity)
Misswhowedding : Basically we’d like to have what we would use for a downpayment in savings for just such an emergency. So that way we have the liquid cash for repairs or heaven forbid a jobloss medical emergency. Also with what I do (and my family does) we could buy a home with cosmetic issues and update it at very minimal cost to us. Because my dad owned his own construction company for 20 years he knows the ins and outs of home repair/updated. But now he’s a pilot so he he works for long streches then has several days off in a row. So we could do projects bit by bit. My job is selling carpet, tile, wood, etc so I can get materials at what it costs wholesale, which is great. So I would like to use our “down payment” on updates while saving emergency cushion for at least 3-4 months.
Post # 17
- Wedding: May 2019 - York, ME
I just purchased a house through USDA loan in June, and I’m so happy I did! I think in all, I spent less than $1000 up front to buy the house, which included the inspection and a structrual engineer’s assessment. The seller paid for all closing costs. The only thing with USDA is that you can’t remove the PMI once you have 20% equity like you can with an FHA. You pay about .5% a year in PMI insurance, and a larger percentage at closing/rolled into the loan. Our purchase price was $157,000, total loan amount came to $161,000, and we pay $933/mo in mortgage, taxes, and insurance, and my interest rate was 3.5%. Let me know if you have any questions! I did so much research, it’d be nice to help someone else out! 🙂
Post # 18
RedHeadKel : If you had no equity, and a hardship that didn’t allow you to make your payment, selling your property to avoid foreclosure or short sale would be impossible. If you have equity and a hardship, you are in a better position to sell prior to foreclosure without needing a short sale. You are on the hook for the full amount of your mortgage when you sell, no mater if you can make the full mortgage back from a sale.
Post # 19
co_katherine : FHA no longer allows removal of PMI at 80%. FHA requires life of loan MI or 11 years depending on your equity at purchase/refinance. Just FYI. Only loans through Fannie and Freddie allow early removal of MI.
Post # 20
We bought our home 4 years ago with a USDA loan. 0% down, our total monthly mortgage with insurance/taxes built in is less than $1,000. It is well within our means to pay for now and we have money in savings for emergencies.
We did have to provide a $1,000 escrow deposit which we got back after closing. I have no idea if that’s typical or universal, but just thought I would mention it!
The process was really easy; we pre qualified, any home in our area of interest qualified for the loan so we didn’t have to pick through what would/wouldn’t qualify. If we had to do it again I would do it the same way!
Post # 21
co_katherine : I know your post was several yrs ago but my husband and I are about to pull the trigger on a USDA loan. It’s the best decision for us. I have been trying to estimate what our payment would be for a home we are buying for $152,000. I think it would be close to yours.