Qualify for a USDA Mortgage loan with no money down.
If you are in search of a home but your household is considered low income, a USDA Loan would be your ticket to home-ownership. This program offers 100% financing and even additional funds for you to make in repairs or addition to your new home. This is really great for a first time home buyer, as well.
The U.S. Department of Agriculture’s Rural Development Single Family Housing Loan Guarantee Program, or better known as USDA Loan is widely mistaken as a farm loan only. In today’s market this is not the case anymore. USDA now defines the word “rural”, in such a way that can include plenty of suburban neighborhoods nationwide in which USDA loans can also be used.
Home buyers who buy a home in a qualified USDA area, and who meet USDA income eligibility requirements, can take advantage of the USDA’s low interest rate, no down payment mortgage program.
How To Qualify For A USDA Home Loan
- A buyer must purchase a home in a USDA-eligible area.
- A buyer’s second USDA eligibility requirement is that household income may not exceed 115% of the area’s median income.
- The home you choose must be a primary residence
- Two years or more from a bankruptcy discharge
- Have a minimum credit score of 640
The USDA Rural Development website will allow you to input your property information in order to determine if it is in the qualified USDA eligible area. This site also has an income eligibility link so that you may determine if your household income will qualify you for this loan type before you even begin your home purchase journey.
The Benefits Of A USDA Home Loan
USDA mortgages are structured similar to conventional loans. They only are different when it comes to down payment requirements and income eligibility guidelines.
USDA mortgages have no down payment requirements, which allow borrowers to finance a home for 100% of its purchase price. The U.S. Department of Agriculture will charge a two percent mortgage insurance fee to all loans, and the cost may be added to the loan size. Depending on the appraised value of the home, repairs and improvement cost can also be rolled into the loan amount, up to 105% of the home value.
Another advantage of the USDA loan is that its annual mortgage insurance fee is only 0.40% annually, no matter how large or small of a down payment you make. This is less than half of the private mortgage insurance charged on an comparable conventional loan, and up to one-fourth of the cost of a FHA loan’s PMI.
Loans insured by the U.S. Department of Agriculture are only available as 30-year fixed rate mortgages, and come with their own USDA Streamline Refinance program!
If this is the loan for you, or if you have further questions about this type of loan, please place your information in the “Contact Us” box and a USDA specialist will contact you within 24 hours.
Program available in Lehigh Acres, Cape Coral, Fort Myers local area!