How to Buy a Home in Alabama or Tennessee with No Money Down
From green rolling hills to fields overflowing with corn, soybeans, or cattle, setting up residence in rural Alabama and Tennessee has an overwhelmingly attractive call to serenity and a new way of life.
If you’re stuck in the grind of the hustle and bustle of city-living and looking for an escape to peace and tranquility, the USDA provides a huge amount of hope.
That’s right, the same USDA that regulates the meat at your supermarket, has a loan product that might just be what you need to leave the stress behind and open yourself to the possibilities of raising your own beef, tilling your own garden, or gathering your own eggs.
The USDA Rural Development loan is a 0% down loan designed to help low to moderate income homebuyers purchase single family homes in rural areas.
Who’s eligible for the USDA loan program?
A US Citizen, US non-citizen national, or Qualified Alien who has a household income that does not exceed 115% of the median household income.
Someone who is not suspended or disbarred from participation in other federal programs and is unable to obtain conventional financing with no private mortgage insurance (PMI).
Someone who is purchasing a single family home as their primary residence in an approved rural area. Click here: https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp to find those approved areas.
The USDA Rural Development Loan Program could be a great solution if your dream is to live away from the city and you are needing a no down payment option to purchase a home.
What should you consider when looking at this option?
How does this product limit your home choices? Remember that there are only specific areas in your state where the loan can be utilized.
Is the home a good enough deal to leverage yourself this much?
Are you comfortable with more red tape and possibly a longer time in escrow, which can happen with government funded loans?
Do you specifically want a single family home for your primary residence? Although there is a 10% down USDA option for rural multifamilies, this product is only available for owner-occupied single family homes.
Talk to your lender and check out this article from the USDA for more information on how to become eligible for this loan:
