First time home buyers making under $35,000.00 dollars a year you do not have to rent!  You can afford to buy a nice new home.  Thanks to the Rural Housing Office you can get a loan for 1% rather then the almost 6% a bank will charge you.  They also extend the loan time out to 33 years rather then 30 which also lowers your payment.    Just as an example here is the differance in payments with 1% rather then 6%.  Just for simplicity we will do a 180,000 dollar loan.   30 Years for 6% and 33 for 1%.   For a 30 year fixed rate loan at 6% your monthly payment will be 1080 dollar plus taxes and insurance.   Now compair that to a rural housing loan with a 33 year term and a 1% rate and your payment would be 534.00 plus taxes and insurance.   There are a couple of things you need to consider with this though.   Year month the government subsidices your home they keep track and when you sell your home you must repay the money up to your break even point ( You can never lose money with a Rural Housing Loan).  I personally think I would rather repay appriciation money and live in a house rather then rent an appartment and not get anything for your rent money.   If you have questions about real estate or about this program please contact me for more information. 

This entry was posted on Monday, January 22nd, 2007 at 9:56 am and is filed under Home Selling Tips. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.