We have all been hearing a lot about this Loan Program lately. It seems every offer I get nowadays requests a USDA loan and I thought it would be great if we all had a little more information about these types of loans.
The USDA is a guaranteed loan program that can offer buyers 100% loans much like the 80/20 loans of the past. This is a government backed loan program that has no private mortgage insurance requirement and has more flexible qualifying guidelines that allow more people to affordably purchase their homes. There are also no maximum loan amounts on these loans like the FHA guidelines have.
One of the first requirements that these loans have is that the property must be purchased in a eligible property area. Second is that you must meet certain income eligibility requirements, there are lower credit scores allowable on this program as well. Be aware however that your closing costs can be more with this loan as they take the mortgage insurance premiums and charge them at the beginning of the loan instead of throughout the loan. Lenders however will let you finance this fee if you need to.
If you would like more information on USDA loans and how they can help you get into a home feel free to call at 509-760-7733.