Establishing Credit (Quickly?)

[N M 96]

We are putting down 10% with no issues. It is better to put 20% down, because then you won't have the mortgage insurance, but it certainly hasn't been an issue for us that we are not putting down 20%. Not to mention, FHA loans only require 3.5% down.

Depending on circumstances, there's also the USDA Rural Development Scheme. Much overlooked, but a GEM for house buyers.

As the name implies, it's geographically restricted - you must be buying in an "approved" rural community (generally a rural town with less than 10,000 residents). But don't let that put you off. Our town qualified and is just 25 miles from the northern edge of the Denver Metro Area, 12 miles south of Fort Collins, and 4 miles from the edge of Loveland. Despite qualifying as "rural" we have a both a Target. and a giant mall within 5 miles of the house - and a freeway connecting us. We are also in a brand new, beautifuly landscaped suburban community. So city dwellers out there, put aside any misguided ideas of rural America being The Waltons or Deliverance!

There's also a restriction on the purchase price (the home has to be "modest") but in our county I think it was $250,000 which was more than enough.

Anyway, we bought last summer, and unless anything has changed since then, USDA loans require ZERO money down. They also do not require mortgage insurance. They are available through most big name banks (we got ours through Wells Fargo) and despite putting zero down, we were given the best rate available at the time - not quite as good as you'd get today, but hey-ho.

It was VERY useful to be able to hold on to our savings in case of emergencies. The whole immigration process wasn't cheap (especially the 6 months of enforced K1 unemployment), and it was nice to hold onto our cash savings, rather than use them as a deposit. Over time and as we get more comfortable, we'll throw more at the mortgage to reduce the balance, but until then it's great to know we still have a reserve. Just in case....

[codygrace 14]

Thank you all so much for the help! Today was an awesome day because we were approved at our consulate interview! I also sent my fiance a link to the Capital One secured credit card for people with damaged credit and he was approved!!!! Thanks!

Edit://

This was the card:

http://www.capitalone.com/credit-cards/secured-mastercard/?Log=1&EventType=Link&ComponentType=T&LOB=MTS%3A%3ALCTMMQC4S&PageName=Credit+Cards+Browse&PortletLocation=4%3B4-12-col%3B2-1&ComponentName=browseTable&ContentElement=32%3BSecured+MasterCard%3Csup%3E%26reg%3B%3C%2Fsup%3E&TargetLob=MTS%3A%3ALCTMMQC4S&TargetPageName=Secured+MasterCard+Details&referer=www.capitalone.com

Edited October 10, 2012 by codygrace