If you’re looking for a home with acreage in the country, to build the homestead of your dreams outside the city, or to embrace nature’s beauty of rural living, a USDA loan could be a great mortgage option with it’s no down payment requirement and flexible guidelines.
The U.S. Department of Agriculture (USDA) guarantees the loan for homebuyers in rural areas, including designated small towns and eligible suburbs outside of large cities. USDA loans help encourage rural development across America by offering affordable home financing to those with lower to moderate income. USDA loans may be one of the least-known government mortgage programs available, so let’s go over the loan features and potential benefits.
Why choose a USDA loan? If you’re located in an eligible area, there are several features USDA loans:
- No down payment requirement.
- Lower closing costs and interest rates.
- 100% financing with a one-time guarantee fee that can be rolled into the loan.
- Lower credit score minimums.
- Gift funds and grants permitted from family or government assistance agencies.
- Eligible properties include single-family homes, new construction, modular homes, planned unit developments (PUDs), and eligible condominiums.
- Mortgage insurance is required.
- Borrower’s income can’t exceed the USDA Rural Development limits for the area.
You can check to see if a property’s location is eligible for a rural development loan on the USDA’s website using the property eligibility maps and income limit calculator.
Ready to say goodbye to city life and hello to wide open spaces? Realize your dream of rural living with the possibility of a USDA loan.
For more mortgage information, reach out to your local Supreme Lending branch today.