Now Grants Pass real estate is more attainable than ever before.
So how do you go about getting a Grants Pass home with no down payment? There is a little bit of a process to it. But don’t worry, we are going to spell it out here, and make it really easy.
- Get pre-qualified
This is important and you should make sure that you know what you can buy. Do not skip this step. It will save a lot of time and heartache in the future if you take the time to complete it.
Finding a good lender is important. Make sure that they have the ability to get the job done and that they are competent. We deal with a lot of different lenders and would be happy to refer someone to you.
You may think that your credit will keep you from buying a home. the best advice I can share is to let the loan officer determine it. You may find that you are ready to buy now. If not, the loan officer will be able to guide you to be able to buy in the shortest amount of time possible.
- Find a Realtor
Once you are approved, you can start looking for your home. The Realtor will be able to start sending you the homes that meet your criteria. They will also be able to find homes that are in an eligible area.
Find a full time agent that can dedicate the time needed to respond quickly to our fast changing market. Our team of Realtors will jump quickly when a home comes on the market so you have a fair chance of seeing it and making an offer that can be accepted.
- Write your offer.
Once you find a home that meets your needs, you can write the offer. (Actually the Realtor will write it) Then in a short amount of time, with an accepted offer, you can be living in your own home.
A qualified Realtor will make sure that your offer is competitive and give you the best chance of submitting the winning bid. There are tricks to the trade to make sure your offer stands out.
To be eligible for a VA loan, you will need to have served some time in the military. The VA loans offer the best loans by far. So if you are eligible, you should take advantage of them.
You will get a 100% loan, with the lowest interest rates on the market. Additionally, you don’t have any mortgage insurance. This can easily save you a couple hundred dollars a month.
Another great feature of the VA loan is that you can qualify with a much lower credit score. In the past few years, loans have been harder to qualify for with higher credit standards. But you can get this loan with significantly lower credit standards.
If you are a disabled veteran, with a rating of zero percent of more, your loan comes without any VA Funding Fee. This can save you 2-4% of the loan amount in fees.
Veterans (not disabled)
You get the same great loan as a disabled veteran, but the funding fee will be added to your loan amount. The actual percentage will depend on if you have used the VA loan in the past.
What if you have money to put down?
It you have saved up some money and can put 20% down, VA loans are may not be the best deal out there. You can get a regular conventional loan since you won’t have any mortgage insurance. This way you can probably get a better interest rate, which means a lower payment.
USDA loans have gained immense popularity. They offer the ability to buy a home with no money down. But there are some caveats to the program.
Let me restate something. If you are eligible for a VA loan, that is the way you should go. But if you had no military history, this is the second best program.
The main thing to know is that USDA loans are usually only eligible in rural areas. This usually means outside of city limits.
But from time to time, the program opens up city areas as well. One of the more recent ones was the inclusions of homes in the Grants Pass city limits. So now all homes in Josephine county are eligible.
In Jackson County, there are a lot of homes that are eligible, but they will have to be outside Medford City limits. Klamath County is completely eligible also.
Each area has its own eligibility criteria and you may have to spend a few minutes with a professional to make sure the home you like is in a qualified area.
One thing to note is that you cannot buy a manufactured (mobile) home with a USDA loan.
Is it really no money down?
These loans are truly no money down. But the thing that most people forget is there are some expenses involve in the loan. You ARE getting a loan amount of 100% of the purchase price. But you ARE going to have a little money to pay some fees.
Most times you are going to have to put some earnest money down to show you are going to really try to buy a home. Anything around $500 is reasonable. You may however find that the seller wants more earnest money. This is your Realtors job to make sure that the earnest money is affordable to you.
A home inspection is a necessity when buying a home. In Southern Oregon you will pay about $350 – $450 for one. this is NOT included in the loan.
You will have to have an appraisal. It is required to get the loan. These can run around $600 - 800. They may or may not be able to include them in the loan. I would recommend having the money available just in case.
Appraisals have gotten more difficult to get in regards to timelines. It is important that your Realtor knows that the time frames need to be extended to accommodate the appraisal turn times.
You may need water tests (like well flow) or septic inspections. These will also cost a few hundred dollars.
So you can see that 100% financing does not mean no money out of pocket. It just means you don’t have to put a down payment on the home.
Why wait? if you have wanted to buy a home, but haven’t figured out how, now is the time. You could be in a home in a matter of just a few weeks. Just think – your own home. And you didn’t need any down payment to make it happen.
If you would like to talk to someone about getting started, call or text me. 541-218-5778. I will be happy to get you on the path to home ownership.
If you would like to start looking for homes, check out Grants Pass Oregon Homes For Sale.