Looking to buy a house in Southwest Virginia? Perhaps you've been looking at homes in Christiansburg, or in Radford, and you just don't think you can afford it. I'd remind you that the opportunities are there for buyers right now for two reasons - (1) the inventory available, and (2) the rates that local lenders are willing to lend at. Let's look at the numbers ...
Assuming a house is priced at $150000, and the interest rate is 5.00% (the current USDA rate), here's how your monthly payments would break down on a home in Christiansburg purchased for $150000 with NO MONEY
Principal & interest: $805.24
Prop Taxes (estimate): 114.83
PMI (None with USDA): 0
Total Payment: $920.07
Imagine - a $150000 mortgage for less than $1000 a month. And it's important to note that this is a USDA loan, with a secure 30-year fixed rate and NO prepayment penalty. STILL think you can't get a loan? I promise you that it's still easier than you think. Contact me, I'll help you search for your best option with local lenders who have money to lend.
This can work well for many buyer profiles, but what one buyer often has a job, credit and no money? Recent college graduates. Virginia Tech and Radford alum, let's see how we can make this work for you!
Updated 12/19 8:05am - Stan Norris of Prosperity Mortgage emailed me to take me to task a bit, and he's right. There are a number of variables that need to be considered regarding mortgages, including whether points are paid up front, whether the Seller is paying some closing costs, what type of property it is, etc. This isn't an endorsement of the USDA program in every case - your local lender and agent can walk through the best options with you to determine what makes sense. And I forgot to include insurance costs, as well - that's kind of important. According to Eric Johnsen, a good rule of thumb to determine monthly hazard insurance on a residential property is to multiply the market value x .0025, then divide that by 12. So in the example above, ($150000 x .0025) / 12 would mean a monthly insurance cost of $31.25 ... still less than $1000.