Many towns work with this loan

I sit here writing this looking out at my driveway at my gas guzzler, which I should have traded in when the Cash For Clunkers program was going on. I had thought that the program was such a good idea that it would be extended. What really happened was that it ran out of money and was ended early.

The home buyers tax credit is ending soon, barring an extension. Will there be an extension? Maybe I am not the one to ask. I know that people who are working on getting their credit in order, or waiting to establish a certain period of employment, certainly hope so.

Even without the credit, however, there are many different mortgage programs out there. One that I wanted to touch on was the USDA loan.

USDA loans: these are written for the more rural areas around here. Leominster and Fitchburg do not qualify because they are not considered rural areas. This link explains limit levels and areas that the loans cover.

From the site:

Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

Eligibility: Applicants for loans may have an income of up to 115% of the median income for the area. Area income limits for this program are here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.  In addition, applicants must have reasonable credit histories.

Is this something you are interested in? Are you wondering what it takes to qualify for a mortgage, or how to work to improve your credit score so you can buy in the future?

The days of qualifying for a mortgage by “fogging the mirror” are gone. If you have questions about the housing market or have questions about the qualification process, I can help you or point you in the right direction. Call me at 978-537-6400 or email at gerry@realtyman.com

Buying or selling your home, or just interested in general real estate market conditions? Get to know our agents on our facebook page, search home listings from the button on the right, or call the office for no-obligation information at 978-537-6401.