Congress plans to extend this credit into next year and also add a new credit of $6500 for existing home owners.
If you have been a homeowner for 5 years or more, you may qualify for the $6500 on a new home purchase next year.
By far, this no down payment mortgage loan has become very popular with first time home buyers this year. Specifically, Wisconsin has many areas in which the property you are looking to purchase will be eligible for this program. Wisconsin mainly consists of rural areas.
Here is a direct link to a map that shows the areas of Wisconsin that are eligible for a rural housing loan.
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11
The rural housing loan does apply throughout the nation, but you have to find the site that pertain to your state. Each state is going to have different areas that allow eligibility.
To learn more about the details of the Rural Housing Loan, go to no down payment mortgage loans in Wisconsin.
If you’re considering obtaining a mortgage loan or refinancing your current mortgage, it is most likely that you’ve thought about seeking the assistance of an online mortgage broker. While the task appears to be quite easy, you should follow some valuable tips in order to ensure you don’t come across any hitches in the process.
The first factor that you must take into account while looking for an online mortgage broker is to ensure that the broker is a representative of numerous reputed lenders and provides a wide variety of loan products. It is quite crucial to ensure the online mortgage broker is not simply an agent of the lender undercover. If the mortgage broker is the representative of only one lender or bank, it is quite improbable that they would provide you the refinance or mortgage option that is most suitable for your requirements.
Verify the qualifications of your online mortgage broker. Are they member of any associations? Are they recommended? For how many years they have been doing their business? Experience is the most important element when it is a question of mortgage lending and locating the right loan product to suit your necessities. You should always wish to ascertain that your mortgage or refinance is dealt with by somebody proficient, somebody who understands what they are performing.
Just confirm if your mortgage broker is asking for a fee. Some online mortgage brokers ask for a fee simply against providing their services, whereas other brokers don’t. If you don’t think that the broker deserves the additional cost, you should stay away from brokers that ask for an upfront fee.
When your broker gives you a referral, you should request them for an evaluation just to be sure that you are receiving the loan that serves your purposes most effectively. The evaluation should incorporate upfront fees and recurring fees and must be performed on the basis of your actual borrowing amount.
You must confirm that the online mortgage broker would stay around to provide services following the closing of the loan. Precisely, what services are offered by them? If there is a disagreement with the lender, would the broker assist you to sort out the problem or you have to do it single-handedly?
When you visit your broker, just don’t forget the aforementioned advices. Your broker would understand that you’re a well-informed consumer who is serious. Realizing which questions you should pose would help you become convinced and well organized.
Since this blog has been around for almost 2 years now, many new readers may not be aware of some of the other helpful mortgage advice topics that have been shared in the past. First time home buyers seem to be the type of buyers that are actively looking to buy a home this year, so much of this advice will be for the first time home buyer. The more mortgage advice that can be absorbed the better.
Every time I take on a new first time home buyer client, I take the time to educate them with the entire mortgage process. This is a necessary, because the entire process of buying a home and financing it can be overwhelming. If there isn’t someone to walk you through the entire process, then take the time to gather up all the mortgage advice posted here.
This year is now being considered one of the best years to buy a home, because of a large tax credit for first time home buyers, interest rates at record breaking lows, and home prices have dropped over the years. These buyer benefits have helped many people decide that 2009 is a great year to buy a home.
I wanted to remind you of some of the other content on this site that could come in handy when looking to buy a home in 2009. Use this mortgage advice to your advantage and you will be sure to find a great deal when buying a home this year.
Here are 3 posts worth your time to read:
What is a FHA mortgage loan? – This has become the most popular mortgage loan today. A detailed look at what the FHA mortgage loan is.
Top 5 questions answered for first time home buyers. – Popular questions and answered that all first time home buyers should know!
Get your mortgage quote in writing. – Talks about what paperwork to look for when getting your mortgage quote in writing.
The down payment seems to be one of the most important factors in buying a home. As it should be, because the more money you put down, the lower your total monthly mortgage payment will be.
A down payment should be determined by the following questions:
1. How much can you afford?
Your down payment should NOT consist of all the money you have in your savings account. Why? Well, let’s say the water heater happens to break down in the first year of buying the home. That kind of break down can cost thousands of dollars! It’s something most people would never expect, but it’s possible.
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You see, most people buy an existing home (especially a first time home buyer) and existing homes do have wear and tear just like anything else. Eventually, something will break or tear, leading to a repair. Sometimes it may only cost $10, but other times it may cost $5000. So, keep a little money in that savings account in case of an emergency. You will thank me later!
2. Is the monthly payment or the down payment more important to me?
It’s quite simple, the more of a down payment you have, the less your overall monthly payment will be. The less of a down payment you have, the more your overall monthly payment will be.
Example in real numbers:
The purchase price is $200,000 and you decide that a down payment of 20% is something you can afford. The principal and interest payment (not including the taxes and insurance) on a 30 year mortgage at 5.0% would be $858.91. Now, assuming the same scenario, but the down payment is only 10%, the payment would be $966.28. The difference in a monthly payment is $107.37. Over 1 year that’s $1288.44. Over 5 years that’s $6442.20!
The important part to keep in mind about that example is that the difference in monthly payments just saved you $6442.20 over the next 5 years, because the down payment is only 10%. Now, the difference in down payment money is $10,000. So, if you are looking to save the most money out of your pocket, then put a less of a down payment down. As long as the monthly payment is affordable, you will always keep more money will less of a down payment.
3. What is the minimum down payment lenders allow?
Right now, in today’s lending environment, there are only 2 ways to obtain a mortgage with absolutely no money down.
…if you have more questions about the details of those two no down payment mortgage loans, please don’t hesitate to contact me.
If you don’t qualify for a no down payment mortgage loan, then the next lowest down payment mortgage is a FHA mortgage loan. FHA only requires a minimum of 3.5% for a down payment. Yes, only 3.5% is required for a down payment with this mortgage program. It has become the most popular program lately, because of it’s low down payment, favorable interest rates, and you can still qualify will less than perfect credit.
These are the types of questions you should know the answers to before looking to buy a new home. The more knowledge you have, the more comfortable you will be in making an offer on a home.
If you are a first time home buyer, you should read Top 5 Mortgage Questions Answered For First Time Home Buyers.
Don’t forget to read up on closing cost credits.