No Down Payment, No Problem

So, you just found the best home that suits you and your loving family, but you don’t have the down payment? Then you just found the gold mine for you and your family. We are happy to share with you, our new discovery to the NO down payment trend! Trying to save enough for a down payment can seem impossible for many, but don’t worry you’re not alone! This is why there’s a loan program called the USDA that can help you out. A USDA mortgage loan might be right for you if you want to buy a home with no down payment or mortgage insurance.

What is the USDA Program?

This is a home loan that’s guaranteed by the US Department of Agriculture, aka USDA. It provides offers a residential mortgage loan for qualified individuals purchasing a residential home in designated rural areas. Most banks actually don’t offer the USDA loan program and it serves a fraction of the US housing market. This loan type is also known as the rural housing loan and is available to qualified homebuyers who meet the income and housing guidelines.

Types of USDA Program

There are 2 main types of loans offered by the USDA under this program: direct and guaranteed. The first and most common is the Guaranteed Rural Housing Program that allows for higher income limits and 100% financing for home purchases. The second USDA program is Direct Rural Housing Program that is less common and is only available for low-income households to obtain homeownership, as defined by the USDA.

Pro’s of USDA Program

  • Zero Down Payment – it allows 100% financing, which means there is no down payment required.
  • Low-Interest Rates – The interest rates offered under this program are typically the same or better than conventional, FHA, or VA financing.
  • Loan Terms – It provides only fixed-rate loans. Both 30 and 15-year terms are available.
  • Low Mortgage Insurance Rates – The upfront mortgage insurance premium for a USDA purchase loan is 2 ½% of the sales price.
  • Credit Qualifications – homebuyers need to have at least a 640 middle credit score to qualify.

Who Can Qualify?

Do you live in an rural community? Then USDA loan program is the best option for you! There are different eligibility requirements for the property and the borrower as well. USDA loans are also appealing and accommodating to low-income consumers. There are income limits to this option, and they vary on location and household size.

2018-02-12T12:24:57+00:00