No money, No problems

Back in the day Notorious BIG coined the phrase “Mo Money, Mo problems”. I think there’s a valid argument there…however, I think the more relative struggle for the vast majority of people is quite the opposite. It seems that “No money, much problems” is a much more real issue that people face…..especially when it comes time to wanting to buy a home. So are we all just out of luck and stuck paying rent forever? Perhaps not.

Maybe you’re one of the many Americans that holds a stead job, has dependable income but can’t necessarily wait to save up 20% or more to use as a down payment on a house. Or, maybe you’re just starting your first job, fresh out of school with student loans and other obligations. Or maybe you have a little money saved up but the house you want needs a little updating so you want to hang on to the cash you’ve put away. Whatever category you fall into or whatever your situation may be….I’m here to tell you, you’ve got options!

There’s a ton of loan programs out there nowadays and if you don’t spend a lot of time reading about them, they all run together and get kind of overwhelming. I want to let you in a couple programs that are out there that will fit your needs and get you in your own home! (Keep in mind I am only speaking of programs that our company offers and we only do mortgages in the state of Alabama.)

The first program is called USDA Rural Development. The USDA offers 100% financing to buy a home, which is incredible! What’s the catch, Justin? I wouldn’t call it a “catch”, but the USDA Rural Development loan does have some specific requirements to determine eligibility. One requirement is that the home must be in an “eligible area”. These areas vary so to check and see if the homes you are interested in may qualify, check out the map here: USDA Property Eligibility Map . Or, you’re always welcome to call my office and I’d be happy to look it up for you. For more information about the USDA RD loan you can check out the USDA website here: USDA RD Info

What if the house I want isn’t in a qualifying area? Or, I don’t qualify for USDA? You’ve still got options. Specifically, the FHA 96.5% loan. The Federal Housing Administration offers 96.5% financing which means the borrower is only required a minimum contribution of 3.5%! The FHA 96.5% does not have any restricted areas like the USDA RD loan does. As long as the property meets the FHA’s minimum standards, the house will qualify. The FHA loan is really popular with first time home-buyers, especially those who may have a little bit higher debt ratios that don’t necessarily conform to conventional standards. You can check out some of the FHA FAQ’s here:

I’m merely, scratching the surface on what all the options out there are for home buyers but I felt Like it was important to let you all know that there are some very affordable options out there to finance your home. Mortgage rates as  a whole are low and many borrower’s have found out that they were able to buy a home cheaper than what they’re paying in rent! I heard a quote one time regarding home ownership and renting that I found really important…” In order to have place to live, you’re always going to pay a mortgage…whether it’s yours or not. Why not pay for something that one day you will own?” To me, that made a lot of sense. If you’re renting…aren’t you just paying that money every month to cover your landlord’s mortgage, or their condo, or their lake house? Don’t get me wrong, I understand that there are times when renting is the only option and I’m not knocking that by any means. The message I wanted to get across is that their are a lot of options out there for you, don’t let the age old myth of “you need 20% down” keep you from pursuing home-ownership.

If you ever have any questions about these programs or others, please don’t hesitate to give me a call, or simply leave your info below. I’m here to help.


Justin Dorroh

Shelton Financial Group, Inc.

Office: 256-757-4555

Cell: 256-443-3208


NMLS Company: 205202

NMLS Originator: 1313401




Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s