The USDA has great loan program designed to help moderate income buyers purchase a home in traditionally rural areas with 100% financing. The first step is to determine if you are eligible to qualify based on the USDAs income limits. The second step is to determine if the area in which you plan on purchasing qualifies as a "rural" area. Both can be determined by visiting http://eligibility.sc.egov.usda.gov . The next few paragraphs will go over the many benefits of the USDA Program.The USDA Program is generally for those with good credit, although there is no minimum fico score requirement. The maximum deliquency one can qualify for regarding their mortgage history is 1 x 30 days past due.
The USDA Program offers 100% financing even in current markets deemed as "declining markets". The current interest rates are typically even a bit lower than standard Fannie Mae rates, and do not have the costly add-ons for credit scores and low downpayment options. Coupled with no monthl mortgage insurance, the USDA program is truly an "affordable mortgage' program.
USDA mortgages require no down payment unlike FHA that requires a 3% down payment.
With a USDA loan you can recieve up to 6% seller concessions, downpayment assistance, gifts and grants.
Regarding the income limits for the USDA Program, documented child care expenses and/or elder care expenses of household residents can be deducted from the total household income.
The USDA Program can be an excellent option for those people whose needs are no longer met by the FNMA MyCommunity mortgage program or the FHLMC HomePossible program due to recent guideline changes and mortgage insurance restrictions.
Some people may be surprised to know if they actually live in a USDA eligible rural area. Be sure to check the link above to see if your home qualifies for the USDA program. It's quick and easy and then you'll know for sure.
