RDA Loans
Michael Holigan: As Linda Loudin and her builder give her home a final walk-through, Linda has to pinch herself to make sure she's not dreaming. She had all but given up on buying a home because she couldn't qualify for a house which suited her needs. She also was having trouble coming up with the down payment. Then she heard about RDA loans. Using that US Department of Agricultural program, she qualified for this house worth nearly $100,000. What's more, she paid nothing to move in, except for an application fee.
Linda Loudin: What it took for me to move into this home was $69.00. That was it.
MH: RDA loans help people move into rural areas. To qualify, Linda could make no more than 80% of the median income. And she had to straighten out a few minor problems on her credit report.
LL: The mortgage company does a credit check and then they come back to you and say okay, you need to clean up this, this and this and write letters on, you know, why this was out there and why this is out there. And so I did.
MH: You can also investigate local programs. Some counties give grant money to cover buyer's down payments and closing costs. In most cases, buyers must repay that money if they sell their home sooner than five to seven years after the purchase. A word to the wise - when grant money becomes available it goes quickly. So it helps to have your application filed, your pre-qualification completed and even a few houses picked out. Another option for low down payments is the Community Home Buyer's Program. If you make equal or less than the median income you can get a conventional loan for just three percent down. A lender or realtor can tell you more about any of these programs. And for information about local grants you can also contact your County Economic Development Office. These loans are designed for people who haven't owned a home in at least three years or first time homebuyers like Linda. Linda's RDA loan will really improve the quality of life for her young son.
LL: I mean, for a little boy that's being cooped up in a two-bedroom apartment and now he's got a yard and, you know, bigger place, you know. It's going to be a lot of fun for him.
Get Pre-Approved for a Loan and know what you can afford - it's FREE
Episode 53 1997 - 98 Season
| Painted Floor | Renovating Kitchen | Stone Flooring | RDA Loans | Home Pest Spray |