When we think about USDA we typically think about beef, farms and government regulations. Not many of us think in terms of purchasing a personal home through them.If you're short on cash and have the desire to purchase a home this is a great program to help you do exactly that.So the question is, why would one purchase using a USDA Rural Development loan?And that is actually answered with another question. Why would someone not?USDA Rural Development loans are one of the few 100% loan guarantee loans. The other is VA but unless you are active or retired military this is not an option for you.What are the benefits? No down payment! That's right not a single dollar. There could be, however, closing costs associated with the loan that may need to be paid out at closing but a down payment is not one of them.Lower private mortgage insurance (PMI) necessary. Most home buyers with a traditional mortgage loan who finance more than 80% of the purchase price will also need to purchase PMI. This insurance actually protects the lender should the borrower default on the loan and allows them to purchase homes with less cash available. Although, a small amount of insurance is required it is much less then traditional loans. Are there any restrictions?Eligibility is restricted to predetermined rural areas. Together with a lender we can determine if a particular home qualifies. There are income requirements to meetYou still must be able to qualify for a loan and that means having acceptable credit score/meeting income to debt ratio guidelines, proof of income etc. You must also be 18 or older, and be a US citizen, national or qualified alien.You can see all the requirements here at USDA. We do have approved lenders right here in Valdosta to help you get qualified and on your way to homeownership! Just give me a call, text or email me and let me know you need a lender referral and I'd be happy to supply you with a couple of local lenders contact information.
