Buy A House With No Money Down
Unlike some of the late night infomercials, it really is possible to purchase a home with little or no money down in the St George Real Estate Market. If you are open to a home in the Hurricane, or Ivins, and most surrounding smaller towns, it is possible to get in with no money down. There is a Federal Loan product available in the Southern Utah real estate market known as USDA or RDA. This helps people that have not been able to save up for a down payment. The loan has been around for quite a while but many people are not familiar with it. It was designed to help build smaller more rural areas by offering incentives for people to live there.
What About Closing Costs?
If a person is able to qualify for a rural house loan in the Southern Utah housing market, they will still have to pay about 2.75% closing costs. Most people who don’t have a down payment saved will more than likely not have money for closing costs. While 2.75% sounds insignificant, on a home price of $180,000 that translates to almost $5,000. In our St George area real estate market it is not unusual for the person buying a home to ask the seller to pay for closing costs. This means that the buyer’s closing costs are paid for by the seller and the downpayment is paid for by the Federal USDA program. This is a savings of over $10,000, making home ownership available to a lot of people that may not even know they could qualify.
There are some other expenses associated with purchasing a home in our Southern Utah real estate market. One expense that is over looked is the appraisal fee which is usually about $500. Our preferred lender First Colony Mortgage will pay for the appraisal when someone uses them for their USDA loan. This also reduces the out of pocket money that is usually due at closing paid by the new home buyer. Another expense that is often overlooked by people buying real estate in the St George area is the home inspection. Home inspections are a great way to avoid jumping into a mistake, or buying a home that may have problems. If there are minor issues found in the home inspection, the home seller will usually pay to have them fixed. In a lot of instances, the items needing repair will offset the cost of the inspection
Another component of a home sale that is sometimes overlooked is the home warranty. A home warranty is usually about $500. A home warranty should be part of every transaction in our St George Real Estate market. The warranty can prevent the home seller from fielding calls from the home buyer about issues they may have known about and not disclosed. It also safeguards the home buyer from replacing something that stops working as soon as they move in. In conclusion, a home warranty can be requested with the request for home seller to pay closing costs. This piece of the puzzle paid for by the home seller, reduces any money due from the home buyer. In some cases this could make home ownership as inexpensive as renting a home. Call today let’s get started.