Buying a Northwestern Wisconsin home is possible without a down payment! There are two main options in this regard. If you are a veteran, or a member of the U.S. Armed Forces, you may be eligible for a VA loan, which does not require a down payment.
Another option is the USDA Rural Development Loan Program. This helps low- and moderate-income buyers purchase homes in rural areas with no down payment. Here are the basic requirements:
Location: The property must be in a designated USDA-eligible rural area. Most of Northwestern Wisconsin is eligible.
Income Limits: Your household income must be below a certain threshold. In Barron County, the USDA income limit is currently $90,300 for a household of 4.
Credit Score: FICO scores of at least 640 are typically needed for approval.
Property type: The home must be your primary residence and meet condition standards for safety and livability. USDA loans are not available on vacant land, unless you are building a primary residence on it.
Term: USDA mortgages have 30-year terms. There is no pre-payment penalty.
While a down payment is not required for USDA loan approval, mortgage insurance is required. (This protects the lender if the loan isn’t repaid.) This is generally 1% of the amount borrowed, up front, in addition to a small annual fee. These costs can be rolled into the mortgage.
This is a brief introduction to USDA financing. To learn more, contact a participating USDA lender in Wisconsin, or ask us for a referral to Northwestern Wisconsin lenders!
We hope this information is helpful to you! Six Lakes Realty is a locally owned family business with over 45 years of experience. Contact us today for friendly, hometown service!
John Flor
Managing Broker
Six Lakes Realty
Office: (715) 924-4806
Email: john@sixlakesrealty.com