Rural home loans by USDA offer a great option for first time home owners seeking 100% financing. In fact VA and USDA are the only government loan options in 2020 that allow buyers to purchase a home with NO money down.
USDA mortgages offer a great benefit for families looking to purchase a home. The USDA home loan program offers many advantages that you won’t find in an FHA loan or traditional “conventional” mortgage program. A few of these advantages include low monthly mortgage insurance, 100% financing, no asset or reserve requirement, and absolutely no money down. That’s right, the USDA mortgage is one of the only remaining mortgage programs in the country that require absolutely no down payment for the purchase of a home.
In addition, the USDA home loan program allows for closing costs to be either paid by the seller in full, or permitted to be accumulated or “rolled into” the total amount of the loan if home appraisal is high enough. This allows buyers to need very little money upfront to buy your home.
The USDA 502 Guaranteed loan is available to all home buyers purchasing in eligible locations. The program is not reserved exclusively for first time home buyers. Even better, buyers are not required to take any special class to get approved. Complete a loan application and search for a home all in the same day!
In order to qualify for a USDA Rural Mortgage, buyers must meet the basic lender USDA loan eligibility requirements below.
- The property must be located in an area that is designated as”rural” by the USDA. Many popular locations across the country still qualify
- Program is available for purchase transaction only (no investment properties or second homes)
- Available for 1st Time Buyer or Repeat Buyer (Buyer cannot own another home at time of purchase)
- Entire purchase price (including upfront USDA Guarantee Fee) can be financed (100% financing, no down payment required)
- Seller or lender can contribute up to 6% of the sales price toward the home buyers USDA closing costs
- Single family homes only (no manufactured housing)
- Term: 30 year fixed-rate
- 620 credit score required to obtain approval
- Buyer income is limited to a maximum of 115% of the area’s median income. Contact us below to discuss the income limits in your county.
- W2 income or self-employed is allowed (income and employment must be fully documented)
- Gifts for closing costs or down payment (if desired) is permitted
Questions? Please call ph: 800-743-7556 or visit www.UsdaMortgageSource.com