THINK YOU CAN'T BUY A HOME...THINK AGAIN!! - If you make less (yes...less) than $22,500 you CAN BUY A HOME right now!!!!!!

This Past week I had the privilege of attending the Michigan the Michigan Association of Realtors convention at the Grand Traverse Resort here in Traverse City. Having the convention here in my hometown was simply a blessing. If you can believe it this is the first MAR convention I have attended in the 21 years I have been in business and all I can say is... wow.

One of the most important things I learn (or became more familiar with) was a financing program through RD (Rural Development) and specifically what is called RD Direct. I am confident that the majority of the population (and many REALTORS) are not aware of how powerful this program can be to first time home buyers or those with a low or very low income.

Did you know that a single person (living in Grand Traverse County) with "decent" credit and an income LOWER than (yes... lower then) $22,150 per year (or equivalent of less then $11 per hour) more than likely can qualify for a RD Direct subsidized loan. The rates are different for each county and are higher if you have additional family member living with you.

This is a $0 DOWN loan which basically gets you a 33 year fixed mortgage at 1% interest (if you qualify). You can buy an existing home or custom build A NEW HOME. You may not realize this but right now I work with a builder who can build you a new 2 bedroom 1 bath home "STICK-BUILT" Home. This includes a basement, garage, appliance, air conditioning on a 1 acre lot for $130,000 with NO MONEY DOWN. Both land costs and building costs are way down so why not take advantage of this opportunity.

Now that may not quite sink in just yet but for example on a $150,000 purchase (a quite respectable home these days in Traverse City) the payment with taxes and interest would be around $700-$750 per month ($445 plus $275 for taxes and insurance). In a traditional transaction the monthly payment would be $774 plus $275 or $1,049. That is a $275 monthly savings.

Again to put that in perspective that is the equivalent to buying a $85,000 home under a conventional mortgage at 5% interest versus a $150,000 home at 1%. We are talking about the same payment, more house and a lower interest rate. That 1% rate is like free money to you and it gives someone who qualifies additional BUYING POWER.

EXAMPLE ($0 down programs): With a Conventional mortgage in the amount of $85,000 at 5% interest the monthly mortgage payment would be $774 PLUS $275 for taxes and insurance for a total of $1,049 per month.

With an RD Direct loan you could buy a $150,000 home at 1% interest with a payment of $445 PLUS $275 for taxes and Insurance and get a $275 per month subsidy for a total of just $750 per month.

If you are unfamiliar with mortgages and finance this all can seem like a lot of mumbo jumbo but trust me when I tell you this... there has never been a better time to buy a home then now. I'll be happy to explain it to you in person so that you get a better understanding but all I want to do now is make EVERYONE aware that buying a home is possible for many people but they just don't realize it.

I am sure some of you say...what is the catch. Well as far as I am concerned, there is no catch. If you are looking for some thing than the worst case would be what is called the recapture. What that means is the government is subsidizing your loan and making about $275 per month of your payment for the time you have the loan.

Since they are in essence helping you, when you go to sell your home (and lets say it does not go up in value) you will not owe any of that money back. If on the other hand it appreciate in value, then in that case you will be required to pay back a portion of the profit. It sure seems fair to me so don't let someone tell you not to check into it.

Visit http://www.rurdev.usda.gov/RHS/sfh/brief_rhdirect.htm for more information or call me anytime at 231-218-5199. You may be asking what I get out of this and the answer is simple. I get to help people buy a home and the seller pays me when I sell a one. Everyone wins and you get yourself a new home.

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Jules Yates is an Associate Broker at Exit Realty Paramount in Traverse City, MI. To Learn More about Jules and to learn why he joined Exit Realty visit www.WhyIChoseExit.com. Have you considered a career change or considered making the switch to EXIT REALTY, if so let Jules sponsor you into an office (anywhere in the US or Canada) and he will personally help you build your business to new heights.