Do you know that the Hahira area qualifies for the USDA loan which offers 100% financing.

A USDA Home Loan is a mortgage loan offered to rural property owners by the United States Department of Agriculture. The 100% financing can be misleading because the buyer usually has to pay at least $1000.00 on out of pocket expenses prior to the loan closing. Most sellers require the buyer to pay earnest money when submitting a purchase and sale contract. The earnest money is a specific form of security deposit to demonstrate to the seller that the buyer is serious about buying the property. The most common amount of earnest money in our area is $500.00 but the amount can depend on the sales price of the home or property. The earnest money goes toward your closing costs or can be refunded back to you if the seller agrees to pay for all of the closing costs.

Another up front expense is the cost for an appraisal. The mortgage company debits your checking account when they order the appraisal. The appraisal fee normally is between $400-$500, but can vary depending on your mortgage company or the number of visits by the appraiser. The mortgage company requests an appraisal to make sure the house is worth the amount that they are lending to you. The fee is refunded back to your account after the closing if the seller pays all of the closing costs.

My next article will be about some of the other out of pocket expenses that you may have when buying a home using a USDA loan. Please feel free to call or text me on my cell at 229-292-6005 or email michellepitchford@yahoo.com for all of your real estate needs.

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