This zero-down payment mortgage helps lower-income people become homeowners

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This zero-down payment mortgage helps lower-income people become homeowners. investinyou (In partnership with acorns.)

The USDA loans are meant for low- to moderate-income borrowers. "Most limits are set at 15% above the median income [in an area]," Jones said. You can generally earn about $9,000 above that level.

"It's done on the community level," Jones said, noting that income limits might differ even within a given state. "In high cost-of-living areas, you'd be able to have a higher income." For instance, in the suburbs of Cleveland, a family of four could earn up to $69,000, assuming a median income of $60,000.national sales manager for Union Home Mortgage

The loans aren't meant to help someone who earns $250,000 a year and if your salary is too high, you won't qualify. Having 20% available for a down payment will also disqualify you. USDA loans are designed for people who can't get approved for a conventional mortgage. Population size is another factor. The loans are not available for densely peopled cities like New York, Cleveland or Columbus, Ohio. "But many suburban areas qualify because of their size," Jones said. For example, Medina County in Ohio has a large number of townships with eligible properties.

 

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acorns With 25% on unemployment (or charity), great time for 0% down mortgages, huh? Values go up, CURRENT (some unemployed) homeowners can't afford higher taxes. Guess what is next? Good luck with that.

acorns GREAT for buyers as long as prices keep going up and taxes go down. As cycle dips, they walk. Wiki FNMA & Freddie Mac, you the FORMER investment companies that the govt (WE) now owns and is,again,buying all paper in site. This should be played annually:

acorns Yeah. After that you lower credit standards. Very 2005.

acorns I'm thinking buyers should wait a few months until median prices reflect the economic reality going on in the market today. $248,857 is ludicrous for young buyers. I know a couple of ppl that got very good house price bargains back in 2009 during the great recession.

acorns That worked out well last time around.....

acorns Isn't zero down payment and giving high credit risk people mortgages for homes what caused the housing collapse the last time.

acorns ..and then they default on their loan in a year....this is a bad practice

acorns No way would I be lending to folks with no skin in the game (no down payment) in this economic environment.

acorns Moral hazard thrust on Wall Street yet again!!!

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