But it could be a reality for you! A USDA loan, one of the government’s least-known mortgage assistance programs, could get you there!
The U.S. Department of Agriculture is helping make home buying a possibility for low- to moderate-income families with the bonus that an influx of new homeowners will help rural communities revive and/or continue to thrive.
Since 2017, the USDA loan program has helped participants buy and upgrade their homes by offering low interest rates and no down payments. Overall, these loans are reserved for homebuyers looking to live in rural areas of the country, but in some states, suburban areas may also be included.
Don’t pass up the opportunity to learn more about USDA thinking it’s not for you. Eligibility requirements for USDA-backed mortgages are based on just two things. The USDA home loan requirements are:
The USDA home loan map helps you figure out where you can find an eligible property. Knowing which homes or areas qualify will protect you from making an offer on a home that’s not going to be acceptable in the long run.
In a nutshell, urban areas are excluded from USDA programs, but some suburban and ex-urban locations get you pretty close to the buzz of some smaller cities. The map will help you ferret these areas out. But if you’re looking for the country life, you’re in luck. Rural locations are always eligible. Check out our recent blog post to weigh the pros and cons of living in the city vs. the country.
Luckily, the USDA map site is relatively simple to use and only takes a few clicks to find what you’re looking for. These tips below will help make the process easier:
To be sure you’re eligible from an income perspective, remember that Income limits for a home loan guarantee vary by location and size of your household. Remember that to qualify, your household income can’t be more than 115% of the median income for the zone you’re interested in. Use this chart to see if you qualify.
There are some requirements you need to consider, too. These include:
If you feel you’re eligible and looking to make your primary residence in a USDA-eligible zone, then a rural home loan may be the right fit for you. That’s good news because USDA loans have many advantages over other mortgage options:
When it comes to USDA loans, you may need help navigating the requirements. But one thing’s for sure, you’ll want to get pre-approved before you start house hunting. Connect with a Movement Mortgage loan officer in the area you’re looking to buy.