If I qualify for a USDA home loan, what are my options for my current home?

My husband and I found out that we could qualify for a Rural Housing loan from the USDA. We currently own a home, but have outgrown it. Financially, things have changed in recent years and our income isn't what it was when we purchased our home. Anyway, we would have to sell our house but that may be difficult due to where we live. We can't afford to pay on 2 houses. I was just trying to find out if there are any programs to buy my house in order for us to purchase a new one. We are looking to purchase a new house by the summer of 2012, and by that time we will owe just under $57,000 on our current home. We live in Illinois.

Update:

We have already tried moving furniture, put kids in different rooms, and did some major remodeling. We can't add on because we are landlocked. We can't use our attic(long story). Our basement is already being used for laundry and storage, since we don't have a garage and the attic is small. I also run a small home day care, which takes up a some space. I started the day care when I only had 2 children. I now have 4 children in a 3 bedroom home with a day care and a small kitchen. If we had a garage, trust me, we would be able to make more room.

4 Answers

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  • 8 years ago
    Favorite Answer

    There are no special programs, you simply sell your home just like anyone else.

  • 8 years ago

    Not aware of any special programs. . . .you wait until you sell current home to buy new home. . . .

    CAN you convert your home to rental property and cover your PITI (principal, interest, taxes, insurance) plus other expenses(maintenance, repairs, improvements) on home?

    Not knowing your finances, can't say whether you would qualify with carrying this debtload as well as wanting to assume new debt for new home. And if your finances are down, it's unlikely.

    0% down loans are a TERRIBLE idea. You end up paying SO MUCH interest over the life of the loan, you will have paid for your house several times over, due to compounding of interest. Even IF they would give you the loan, is it worth it to buy a home and pay for it 5-10 times purchase price?? You may qualify to apply for a USDA loan, but that doesn't mean you will get loan approval. They have run out of money very quickly in some parts of the country, and loan approval is based on the whole package of you two: credit rating, stable employment, adequate income, sufficient down payment, low debt load. The MORE you put down, the more likely you are to obtain loan approval, and the LESS you will spend in interest (tens of thousands of dollars) over the life of the loan.

    Suggest you figure out how to make current home work for you, and be more realistic. Re-arrange things, finish a basement or attic or do a small addition.

    Source(s): Just because you want something, doesn't mean you should have it, or can have it.
  • Tom K
    Lv 7
    8 years ago

    You could rent out your present home if rentals in your area are sufficient to cover the mortgage. Just bear in mind that there might be times when the house is empty and that maintenance issues could occasionally arise.

    Or continue to try to sell your present home. Even if you only get enough to pay off the mortgage balance, you could still be ahead in the long run.

  • Anonymous
    8 years ago

    Chatsplas gave you the best answer. I clicked on your profile and you have asked the same thing for at least 10 times. Possibly more but I dont have time to read it all What kind of reply are you looking for? Maybe get a job like rest of us and pay off your dept and then you dont have to sit on yahoo trying to find ways to pay for it

    Source(s): Experience
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