Want to live in a small community where there is always something fun to do? Well, look no further than Taos County, New Mexico. This county currently has about 32,723 people, which makes it a quiet place to call home. In addition to the small-town vibe, Taos County has an active tourism industry due to its many attractions that celebrate its history and culture. Like the annual Taos Pueblo Pow Wow, which celebrates the culture of Native Americans.
The county is also home to a rich artistic culture with its many cultural centers like the Charles Collins Gallery and the 203 Fine Art Museum. Not to mention its many outdoor activities that allow families to enjoy the mostly warm weather and scenic spots. Every winter, the county transforms into an excellent site for winter activities like skiing.
In addition to various events and activities, Taos County, New Mexico, currently enjoys a median home price of $259,326, which is lower than the national average of $320,000. However, some people might not be able to afford the initial costs of such a purchase. That is where Government guaranteed home loans come into place.
With their low eligibility requirements and outstanding benefits, loans that are guaranteed by the Federal Housing Administration (FHA), the U.S. Department of Agriculture (USDA), and the Department of Veteran Affairs (VA) reduce and sometimes remove all of the initial costs that come from buying a home. As a result, you can save money to improve the property itself or keep it for yourself.
FHA Home Loan Information
Loans that are guaranteed by the FHA reduce the costs of buying a home by reducing the down payment required from the conventional average of 20% to a more affordable 3.5%. Additional advantages from FHA loans include lowered monthly mortgage costs, low closing costs, and the option to take the loan out as either a 15 or a 30-year fixed-rate mortgage.
Eligible applicants must have a credit score that is higher than 580, although some lenders will accept credit scores as low as 500 with a down payment of up to 10%. If the applicant has gone through bankruptcy in the past, they can still qualify for the loan as long as they meet specific requirements. Chapter 7 recipients must be at least two years removed from bankruptcy declaration, while chapter 13 recipients must have 12 months of making payments on time post-bankruptcy and court approval.
The only limitation that FHA home loans have is loan limits, which differ per county. Currently, loan limits in Taos County are $356,362 for Single Family Homes, $456,275 for duplexes, $551,500 for a triplex, and $685,400 for a fourplex.
USDA Home Loan Information
Some parts of Taos County are eligible for the USDA home loan, which is exclusive for more rural areas to improve and reinvigorate their local economy. As part of this effort, USDA loans are for applicants who make an income less than the lower-income limit for the county. Currently, this county’s USDA loan limit is at $265,400 and offers benefits like a $0 down payment requirement, competitive interest rates, and lower monthly mortgages.
In addition to having an eligible income less than 115% of the area’s median income, the applicant must be a U.S. Citizen or a legal permanent resident. They must also have a credit score of at least 640 and show a willingness to make their monthly payments by having at least 12 months of making payments on time.
VA Home Loan Information
The VA offers home loans considered the best home loans available due to their many benefits. These benefits include a no down payment requirement, lower monthly mortgages, low-interest rates, no prepayment penalties. In addition, the county has no mortgage insurance premiums or loan limits for first-time homebuyers as of January 1st, 2020.
The biggest obstacle that potential applicants might face is that submitting a VA loan application requires that the applicant is an Active Duty Service Member, a Veteran, or a surviving spouse. Applicants must also meet income, property, credit score, and military service requirements to enjoy the VA’s benefits. However, buyers who have more than one active loan are still required to adhere to county loan limits set up by the VA. The loan limit for Taos County’s second VA loan is $548,250.
Phil Georgiades is the CLS for VA Home Loan Centers, a government-sponsored broker specializing in VA home loans. With over 22 years of experience working in real estate, he and his team of real estate experts can help you find the right loan for you; call us at (888) 573-4496.