My son, c/o 2019, got a job right out of school in 2020 in Aiken, SC. His year apartment lease has been up so he's paying a premium for going month to month while he decides on what to do now. He would like a little bit of a yard so he has tried other rentals but they go fast. Aiken is a smaller town so there's just not that much.

He's now looking at buying a townhome. He's saved a tidy little sum, considering he's just out of school but he's just looking at like 5% down. They (meaning I guess his realtor?) are talking to him right now about a USDA loan and it sounds too good to be true - they pay closing costs and don't do PMI- this is according to my son so I feel like I'm getting it 3rd hand.

I just wondered if anyone here has any experience with these?

USDA works a little different than other loan types. With a USDA loan it has to be in a specific location that is USDA approved. You can do a USDA loan with zero down payment, but usually have closing costs. PMI is not required on USDA loans, however there is a USDA guarantee fee of 1% upfront and then you have an annual fee which is 0.35% of the loan balance each year. That amount is divided over 12 months and added to the payment, so there technically is no PMI, but there is a monthly fee added to the payment.

I am not licensed in SC, only Texas, but I would be more than happy to help guide him or answer any questions either of you have. Here to help in any way I can. Please feel free to use me as a resource, you will never be bothering me.

Brian
bbailey@gomycity.com

Not only do they have location limits, designed for rural financing after all, there is income limits. But the income limit is fairly generous.

https://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state

Wow! Hoping my kid has your luck with this!

I have looked into the USDA and other State first time homebuyer programs. There is multiple avenues for assistance. Make sure you research State sponsored homebuyer programs. Some programs also require you to take a class that covers many issues that come up with home ownership. One other note, all of the assistance programs came with a slightly higher interest rate. I qualify for USDA and first time, but the best deal on interest was 20% down, which also eliminates the PMI.

Best wishes with your purchase

Sorry for what may be a silly question, would a realtor assist with what type of loan would suit us best or is that up to us to try and figure out? We've got all our financial pieces in place, just been waiting to actually pick up the phone and start

Now that youve said it, I realized that I already knew that. Next time, coffee THEN post.

How do you know the areas that qualify for a USDA loan?

water turkey said:

---

How do you know the areas that qualify for a USDA loan?

---

You can go on the usda website and plug in the address you are looking at, or zip code.

plug in here

https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do;jsessionid=u-apm12EB43jeW1GiZ+1Knru