If you’re thinking about purchasing a home, it is important to know all your options when choosing a loan product. NexSpring Mortgage Consultants spend time to fully understand your current situation, and help you choose what loan product option is right for you. One option NexSpring Mortgage Consultants consider when talking to a client in a rural area is a USDA Home Loan.
A USDA Home Loan is for homes in Rural Areas as defined by the U.S. Department of Agriculture. This program allows a borrower to obtain up to 100% financing based on the sales price or appraisal, whichever is higher. It also allows for reasonable closing costs and pre-paids to be financed onto the loan up to the appraised value. There is a low 1% up front guarantee fee financed onto the USDA home loan, along with a .35% monthly premium added to the monthly principal, interest, tax and homeowners insurance payment. USDA home loans also allow refinancing to borrowers already financed with a USDA loan.
The USDA Home Loan allows for more flexible underwriting and credit criteria than other home loan programs. This home loan does have house-hold income limitations as published by the USDA based on house-hold size and the State and County the property is located in.
If you think a USDA home loan might be right for your home purchase, click here. If you qualify, you will be put in touch with a NexSpring Mortgage Consultant to learn more about next steps.