A USDA loan is a mortgage loan backed by the U.S. Department of Agriculture (USDA). In fact, they are available to millions of primary home buyers in eligible areas. So, if you’re looking to buy a home, this might be the right mortgage choice for you.
Don’t let the term “rural” fool you. This type of loan is available in many suburban areas as well. Most of the country is in what the USDA considers a qualified rural area. But, it’s still important for prospective buyers to check a home’s eligibility status before going too far! To see if a property is eligible check out the USDA Property Eligibility Map Here. (Note: the USDA updates its list of eligible rural areas annually).
WHY USDA?
One of the advantages of a USDA loan is that it requires no down payment. You can finance up to 100% of the property value. More advantages include:
- No Down Payment (100% financing)
- Lower-Than-Market Interest Rates
- Low Monthly Private Mortgage Insurance (PMI)
- Flexible Credit Guidelines
- Ability to Finance Upfront PMI
First-Time Home Buyers
A USDA loan is great for first time home buyers that often have little money to put down on a home. The USDA mortgage is 100% financing with secure 30-year fix rate terms.
However… it’s not JUST for First-Time Home Buyers
You do not have to be a first-time home buyer, but you have to agree to live in the property as your primary residence. It’s essential to find the neighborhood in the ideal location with the amenities that best fit you and your family whether you’re looking for a home in a rural area or not.
Tips to Finding the Perfect Neighborhood:
- Make of list of the activities (movies, health clubs, churches – you engage in regularly and stores you visit frequently. How far would you travel from each neighborhood to engage in your most common activities?)
- Check out the school district
- Check crime
- Look for economic stability
- Consider resale value
- Do a walk-through of each neighborhood
Ready to take the next step?
A pre-approval should always be step #1. Click below to get started or visit our website here to learn more about USDA Loans. If you have any questions contact us today 732.832.2967.
