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Posted over 7 years ago

Bought my first property!! USDA, 0% down is real! Now what?

I am closing on my first property on Tuesday!  The property is a cute little 3/2 on a 1.03 acre lot.  It's in a rural area, so I was able to qualify for a USDA loan.  This means 0% down!  All I'm paying for is about half of the closing costs.  The only downside to getting a USDA loan is that I need to pay mortgage insurance, and the interest rate is not as low as some of the conventional loans out there.

I was able to find this house off-market, because of my connection with local real estate investors.  The investor I worked with is also a friend of mine.  He bought the property for dirt cheap, fixed it up, and is now selling it to me right at the retail rate - the appraisal came in as the same amount that I'm buying it for.  This is a win-win for both of us.

My plan from here is to refinance in about a year, or two.  Once I do this, I'm hoping to be able to get rid of the mortgage insurance payments, and find a lower interest rate.  Then, it will be rent-ready, and I should be able to get a nice cash-flow each month!  

It feels good to finally be in the game!  For now, we're going to live in the property, till we have to move for work or any other reason.  At that time, we'll rent it out.  This is the first of many rental properties.  I think that the best way for me to become wealthy is to have equity.  I want to thank BiggerPockets for their amazing content, and the encouragement that they've given me to go out and buy a home!


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