If I told you that if you were a single parent, made $15 per hour and have two children that you could qualify to purchase a $120,000 home, would you believe me?  Probably not with all the media attention about new loan guidelines and restrictions.  However there is still one loan available for lower incomes that can be used to purchase a much nicer home than one would originally qualify for by traditional methods.   Say thank you to the United States Dept. of Agriculture!  That's right, USDA offers a direct Rural Development loan that uses different guidelines and allows for payment assistance.  Credit score guidelines still apply, but income requirements are very different.  You won't find this loan at your local bank or favorite mortgage office.  More than likely your real estate agent won't even tell you about it.  Why?  It is a product only offered through a local USDA office and takes longer to close than a traditional home loan.  Many real estate agents don't want to take the time to wait on a 3 month closing.  But remember, a good REALTOR is working for you to find you the best deal!

This loan is unique in many ways.  There are only certain geographical areas that this loan can be used to purchase.  This area is all rural areas with the exception of certain counties containing large cities. (ex: only parts of Rutherford Co., TN are available) The home to be purchase must meet USDA guidelines regarding condition, utilities and location.  The loan income limitations also take in consideration for number of children in the household, child care expenses and so forth.  It offers payment assistance, thereby reducing the size of the required monthly payment.  Payments will vary depending on income, price of house and other factors.  However, I know of a particular situation of a home that cost $105,000 for the buyer.  The buyer had 2 children and the monthly payment was only $489.  That's cheaper than rent any day!  

If this sounds like a loan that fits your situation, contact me at 615-653-0080 and I will forward you more information and get you in contact with the proper USDA office for the area.

Gregory Goff