TL;DR: Americans now need to make $120K a year to afford a typical middle-class life and qualify to purchase a home. Minimum.
https://www.rd.usda.gov/sites/default/files/fact-sheet/508_RD_FS_RHS_SFH502Direct.pdf
the federal government will loan you the money for the house at below market rates, and if their rate is still too expensive, they can give you a deferment.
my effective interest rate today is 1%.
please take money from the federal government.
fuck the banks.
Lots of sellers will prefer cash or regular loans so your application is very likely to be last in line. Plus the applications are much, much more complicated and mortgage applications are already a bitch. But then it’s usually a once in a lifetime experience and may be the only option for a lot of people do this is more of a heads up than an attempt to discourage anyone from applying.
Cash I understand, but what’s the reasoning behind sellers preferring regular loans instead?
USDA isn’t gonna buy a fixer upper. they want people to have safe housing. this might mean the seller is going to need to fix the problems
for us, we liked that, but it did mean we lost our on a couple bids. which was good: we found a real jewel.
“applicants must be without decent, safe, and sanitary housing” is that a hard stop or is there some flexibility on that condition? im not trying to pry into your previous situation, but that makes it sound a bit more dire than the average renter.
i had a lease on an apartment when the process started.
edit: honestly if the requirement were that you were homeless or next to it,i don’t think anyone would ever apply for this program. the first application is daunting, and then there is the matter of actually shopping for a house.
