Everything You Need to Know About Buying a Home in Piqua
Monday, October 29, 2018
We love our community. This is a fantastic place to build a life, raise a family and own a business. Here, it is common for neighbors to greet each other by name and with a smile. At the local school, park and grocery store, people often exchange a friendly greeting because that is what community is all about - being there to support and encourage each other because together, we make our community an amazing place to live.
It is important to us that every community member have the opportunity to put down roots and own their home. Therefore, we are regularly involved in local housing initiatives, conducting research and identifying solutions to help increase local homeownership. If you are looking for a home for your family, we encourage you to speak with a real estate agent or use our online search tools. In the meantime, here are some financing options to be aware of.
#1. USDA Rural Development Loans
Most homebuyers are unaware that the Rural Development arm of the USDA offers financing solutions. These are loan programs that are designed to help people in less developed communities to purchase a home, often without a down payment or using a down payment assistance program.
Their loan programs are primarily designed for people who do not own another residence. What makes them unique is that the interest rate is low but they are designed for people who do not make too much money. In other words, this is a loan program for the working and middle-class. Anyone who makes over-the-income limits will not qualify. Because of that, families who thought they did not make enough money to purchase a home, often find that they are approved for financing. Information on USDA loan eligibility in Piqua can be found here.
#2. FHA Home Loans
FHA loans are ideal for anyone who would like to purchase a home but does not have a large down payment. Typically, the buyer will only need to put 3% down to secure the loan. The interest rates are affordable and sometimes there are down payment assistance programs to help buyers. Since the down payment requirement is low, there is a monthly mortgage insurance premium that must be paid as part of the total loan payment.
#3. VA Home Loans
For veterans and their families, it is worthwhile to explore the VA home loan program. The Department of Veterans Affairs does not actually issue the loan. Instead, local banks do. The VA guarantees repayment on a portion of the loan which lowers the risk for the bank lending the money. For that reason, veterans are able to purchase a home with zero down payment. Veterans receive an additional savings because there is no private mortgage insurance on VA loans. This can sometimes be a savings of hundred of dollars or more per month.
#4. Loans from Local Banks and Credit Unions
Traditional mortgage programs are also available at affordable interest rates. We have several local lenders providing community members with home buying assistance. For example, Heartland Federal Credit Union offers mortgage loans, but also provides information on the homebuying and lending process.
Contact us for updates
The City of Piqua and GrowPiquaNow is constantly working on local housing initiatives to increase the opportunities for homeownership within our community. To find out about the latest programs or incentives, contact us.