| When I was 18 I had a friend and his mother was a | | | | show you what I mean. The first process tells you if |
| real estate agent. I was working and had told her that I | | | | your are eligible for an FmHA loan. The second |
| was looking to spend some of my money either on a | | | | process is the paperwork needed to sign the deed. |
| car or a house. I just wanted to spend some money | | | | The last is the selection, paper work, and purchasing |
| more wisely than I currently had been. | | | | the home. |
| She asked me if I had any money to put down on a | | | | Qualification: |
| house and I told her how much, about $900. She then | | | | *You must not be able to finance with regular lending |
| informed me that was not quite enough to buy a | | | | company. |
| home in the regular fashion. I asked her why and she | | | | *You must be an adult of at least 18 years of age. |
| told me that because I was so young I would not have | | | | *You must be a legal American citizen. |
| good credit and would need a much larger down | | | | Preparation: |
| payment. I asked how much larger and she stated that | | | | *You must fill out a budget showing how much money |
| I would need about 20% down. | | | | you spend in all areasof you ever day life. Including an |
| I am a very good at math and immediately picked up | | | | allowance for non-necessities. |
| on that. I could have afforded a house in the area of | | | | *You must show pay stubs and length of time in |
| $4500. This was early 1982 and not 1882. $4500 | | | | current work. |
| would not get me much more than land in Timbuktu | | | | *You must have a Tax Form stating your income. |
| with a 30 year old used trailer and no electric or | | | | Finalizing: |
| plumbing. Pretty easy to figure that out. I was beat for | | | | *You must put money in escrow. Your agent will assist |
| all intense purposes of buying a house. | | | | you as to the amount. |
| A few weeks went by and I was talking to her again | | | | *You must pick a home. You can pick either a current |
| and I told her I had a little over $1000 saved. I was | | | | FmHA foreclosure oryou can create a new loan. |
| obviously working on the same thing at this point. I told | | | | *You must let FMHA send adjusters the house to |
| her I thought a car was a bad investment but that I | | | | make sure it is ready to livein. They can not sign loan |
| had applied for a car . loan. She asked how much the | | | | on a house that is either not livable or the ownerdoes |
| down payment on the car would be and I told her my | | | | not have extra money loaned to them for the |
| 1973 Pinto was being used as the down stroke. She | | | | reparations. |
| realized that meant I still would have all my money to | | | | *You must have estimates done on all work |
| put on a house. | | | | necessary for FmHA to considerit ready to be lived in. |
| She then tells me that I may be able to get a house | | | | *You must sign paper work agreeing to the conditions |
| from Farmers Home Administration with nothing more | | | | of the loan forreparations. |
| down than escrow. What is escrow I asked? She told | | | | *You must buy insurance for the home. The home has |
| me it was basically the money used to file paper work | | | | to have current and upto date insurance at all times |
| and do surveys and such. How much is escrow? She | | | | during the loan period with FmHA. |
| said that around the area it was generally less than | | | | *You must sign for the home |
| $600. Well that just leaves me with a down payment | | | | *You must sign the deed and/or abstract. |
| of just over $400 I said. She said that with FmHA I | | | | Now you own a home thanks to FmHA. Take in note |
| would not need a down payment. She had already | | | | that no one can be turned down for bad credit. Take |
| told me but I did digest it correctly. Really? No down | | | | in note that I bought my home through FmHA four |
| payment? | | | | days short of two months prior to my 19Th birthday. I |
| I asked her when I could get started on this and she | | | | was two and a half months at my job. How much |
| said tomorrow, if I were serious. I was plenty serious. | | | | credit do you think I had? |
| Why not own my own house rather than renting? I | | | | You may be skeptical in reading this because I am |
| went to her office the next day and she had a few | | | | discussing something that occurred in 1982. I just |
| houses for me to look at. I picked the third one we | | | | recently took a second cousin in and she was |
| looked at. I really had no preference, I was 18. A house | | | | approved in Oakland County Michigan for $162,500 |
| was a house. She said o.k. and drove me back to her | | | | total loan including reparation and cost of home. |
| office and I signed paper work on the escrow. | | | | It doesn't take any real time to do this whole house |
| Three weeks later I was the proud owner of an old | | | | buying venture either. It took me inside of three weeks |
| house. It was a one and a half story home with a | | | | from the first visit to pick the house with my friends |
| Michigan basement and a two car garage on two lots. | | | | mother. Five years ago I told my sisters' neighbor the |
| It was awesome, I was a home owner. I could now | | | | whole process and she was moved out inside of |
| make my own rules. No more signing contracts with | | | | three weeks. |
| landlords. Heck! At that time a contract was not even | | | | There are many more great things about this program |
| for a whole year like it is now. I learned the process of | | | | that I will not cover. I simply do not want to put all that |
| how to buy a home through the Farmers Home | | | | much information in this one article. I will be writing |
| Administration in the process. What an awesome | | | | another article that will include tips on nearly everything |
| program FmHa is. | | | | you have to do in each process. Some things, like |
| Each process has an order that you have to do them | | | | signing the abstract, there isn't much advice I can give. |
| in. There is no real set order in which to do the | | | | Uh! Oh yeah! Sign your John Henry where they tell you |
| processes. That is kind of confusing I realize so I will | | | | to. I guess I did give you a hint after all. |