HomeBuyer University: Buying a Home, Just Got Easier
Course 3: Loan Type Overview
Step 1: Conventional Loans – Only 5% Down Payment
Step 2: FHA Loan – Only 3.5% Down Payment
Step 3: FHA 203k – Rehab Loan
USDA Loan - 100% Financing
The US Department of Agriculture (USDA) offers financing for buying a home. The home loans can be used for properties in USDA eligible towns, enabling more people to benefit from home ownership.
Benefits of USDA Mortgages
- 100% financing.
- You do not have to be a first-time home buyer to qualify.
- Single family and multi-family homes can qualify.
- You can receive a credit from the seller to help pay closing costs.
- Flexible income requirements.
- Flexible credit requirements.
- No asset requirements.
- Low monthly mortgage insurance.
USDA provides a list of counties and zip codes in which USDA financing can be used. Buyers are typically surprised to see specific neighborhoods on the list as many are not as rural as assumed. To look up eligibility for CT and nearby areas, visit our USDA loan page.
Qualifying for USDA mortgages
USDA criteria is similar to FHA loan criteria. Buyers should have stable income, sufficient credit, and the ability to repay the home loan CT. There are income restrictions which vary by state, county, and the total number of people in the household. Speak with a USDA loan expert about processing time frames to ensure that you allow adequate time before closing.
Find an experienced local mortgage company that not only provides USDA loans, but also closes many of them. Not all mortgage lenders who do these types of loans are experts at doing them. Get a pre-approval first and know your options and loan requirements prior to making an offer on a home. Not getting pre-approved first can lead to complications and even a denial of financing. Contact First World Mortgage, a CT Mortgage Lender, by calling 860-236-LOAN.