Can you still get 100% financing for homes? We thought those days were long gone but there is a Government loan program operated by the USDA. The purpose is to provide rural communities with access to 100% financing for their homes.
So how does this apply to Charlotte Real Estate? Charlotte is still a very new city and as far as the Government mapping goes (as applied to the USDA loan program) many addresses for Charlotte Homes qualify. For example, I have listings in a new subdivision in West Charlotte, homes in a Lake Wylie community and homes in Waxhaw and all of them qualify for USDA 100% financing!
What's the catch? It would appear, since this program remains in tact, that the mortgage loans made under this program are successful. Yes, you still need decent credit to qualify. There are additional fees for the loan just like any Government loan. For example, FHA loan charge the buyer an additional 1.75% closing fees and the USDA charges 2%. Wait a minute. Isn't that very high for your new home purchase. That depends.
When you obtain an USDA loan you do not pay PMI. That reduction of your house payment alone will easily off set the additional 2%. In addition you can build that 2% into your loan.
Whait a minute. Then I will owe more than the home is worth. Yes, but if you purchase a home below market value (due to tough economic times), then you are way ahead of the curve.
There are always options when buying your new Charlotte home. Visit Charlotte Real Estate - Chalrotte NC Homes for sale to learn more about our area,