With changes in requirements to get financing and the shortage of homes available in certain price ranges, it can seem overwhelming to try buying a home in Athens GA.
You may think you must have 20% down payment in order to get a mortgage but that’s not the case. Most first time buyers use FHA financing with a 3-1/2% down payment and ask the seller to pay the closing costs. This makes it more affordable since buying a $150,000 home may mean that you only have to save $5,250 for the down payment.
Another benefit to FHA financing is you are allowed to accept a “gift” to cover the down payment.
Other types of financing include 20% conventional mortgages. Some mortgage companies offer conventional mortgages with as little as 5% down.
USDA Rural Development offers 100% financing, but extra fees added may not make it as desirable. Also, the Rural Development USDA 100% loan restricts the areas that are available for these loans.