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USDA Home Loans

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When thinking about your dream home, what comes to mind? A back yard with lots of land or a city that never sleeps? If your first thought is rural area, buying your perfect home may be within reach. The United States Department of Agriculture (USDA) developed the rural development loan to provide a 100% home financing option for homebuyers in select areas.

If you are looking to buy a home, whether you are a first-time homebuyer or not, you might be a candidate for a NO MONEY DOWN home loan with USDA!

How Does USDA Home Loan Programs Work?

shutterstock_1104660452Getting a USDA loan is very similar to getting an FHA or a Conventional home loan in the sense where your First World Mortgage Loan Officer handles all aspects of the transactions and communications during the mortgage process. This means everything from taking your mortgage application, issuing the final approval to shaking your hand on the closing day. USDA interest rates are typically lower than Conventional mortgage rates, lower annual mortgage insurance premiums and credit requirements are typically more lenient. Not all counties within your state are eligible for a USDA Loan. Please consult with your licensed Loan Officer to learn about eligibility.

Key Benefits:

• 100% Financing and borrowers and you don’t need to be first-time homebuyers!
• Seller concession limit is 6%.
• One of the lowest payments available! Interest rates are low, and USDA has one of the lowest annual mortgage insurance premiums.

USDA Loan Requirements:

• Minimum Credit Score is 620 (with automated approval).
• Available in over half of the state, mostly just in towns with a population under 20,000.
• 1% Financed Guarantee Fee that gets paid directly to the USDA.
• Only available for Single Family Houses/Condos in Eligible Towns with no in-law apartment with separate entrance, no large outbuildings, and no sub dividable lot. In-ground pools allowed, however, there are appraisal value restrictions regarding assigning value to a pool. Condos must be approved by Fannie Mae (FNMA), Freddie Mac (FHLMC), HUD, or VA.
• Well water test and septic inspections may be required.
• Household Income Limits apply and can change. Contact a licensed Loan Officer for more information.
• For eligible areas, please contact your licensed Loan Officer.

Ask An ExpertWhat’s Next?

The next step in the process of obtaining a USDA home loan you will need to consult with a qualified First World Mortgage Loan Officer. They will assist you with becoming pre-qualified, so you can find out how much home you can afford. To find out if a home is eligible for a USDA home loan you can discuss with your Loan Officer or visit the United States Department of Agriculture website and follow the instructions: www.eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Becoming a homeowner, especially for the first-time, can stir up some feelings of anxiety and excitement. With the help of your Loan Officer at First World Mortgage you will be living in the home of your dreams before the holidays are over!