No Down Payment, No Problem!
Many people think they need a huge down payment saved up before they should even try applying for a home loan. The truth is that with a USDA loan a down payment is not required. You may put money down if you wish, but it is an honest to goodness no down payment needed home loan! This type of loan also approves those people with less than perfect credit, which is a majority of people.
No only do you not need a bunch of money, or any money at all, to put down. It is also okay if your credit is less than perfect. The average person does not have a perfect credit score, and with a USDA home loan you are not expected to be perfect. If you have a bankruptcy on your credit history, this is still not a deal breaker! Your bankruptcy does need to be at least three years, or thirty six months, in the past. If you just filed for bankruptcy the year before, you will need to be patient and wait out the remainder of the thirty six month requirement.
If you yourself are not able to qualify for a home loan as a single individual, you can have up to three co-borrows on your loan with you, for a maximum of four borrowers total. This is a very generous and liberal rule, and between you and three other family members, your income should qualify for a USDA loan. Co-borrows can be roommates, family members, your spouse, your parents, or anyone else willing to sign on the dotted line with you.
In conclusion, you do not need to have a fortune saved up to put down on a home, a bankruptcy on your credit report is okay as long as it was thirty six months in the past, and up to three other people may be on the loan with you! This is the reason that so many people decide that a USDA loan is right or them and their family. This type of home loan makes home ownership a real possibility for people whop would not qualify for a regular loan. Remember that with this type of loan that no down payment is really no problem!
